Anadys Rockets 115% on Hep C Data

Updated from 11:43 a.m. EST

Anadys Pharmaceuticals(ANDS Quote) released the first antiviral activity data on its lead hepatitis C drug Thursday, which the company hopes will attract a deep-pocketed partner to fund further development.

Eight patients with hepatitis C treated with a twice-daily dose of the drug ANA598 reported a median reduction of more than 99% in the level of virus after three days of treatment, the company said.

None of the patients in the study reported a rebound in their viral loads while taking the drug and there were no serious adverse events reported. The interim results come from an ongoing phase Ib study of ANA598 -- the first study in which the drug is being tested in patients infected with hepatitis C.

Anadys CEO Steven Worland heralded the early data on ANA598, calling the magnitude of the viral load drop shown by ANA598 greater than what's been reported by any other competing drug in its class.

ANA598 is what is known as a non-nucleoside polymerase inhibitor. These drugs act directly against specific enzymes to prevent the hepatitis C virus from making copies of itself. That's different from current treatments for hepatitis C, namely long-acting forms of interferon and a drug called ribavirin, which work by stimulating the body's immune system to destroy the virus.

Pfizer(PFE Quote), Gilead Sciences(GILD Quote) and Merck(MRK Quote) also are working on non-nucleoside polymerase inhibitors for hepatitis C.

Anadys shares fell below $2 at the end of 2008 in part because the company, with about $25 million to $27 million in the bank, needs to raise money. Worland says the company's goal is to use the new data on ANA598 to attract a corporate partner that will pour money into the company and help fund future studies of the drug.