This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Anacor Pharma: Run-Up Trade Into January Trial Data

NEW YORK ( TheStreet) -- Biotech run-up traders should pay attention to Anacor Pharmaceuticals (ANAC - Get Report) over the next few weeks as the company readies phase III clinical trial results in January.

Anacor is a developer of anti-fungal, antibiotic and anti-inflammatory products, including its lead drug tavaborole, a topical solution for treating fungal infections of the nails and nail bed (onychomycosis.) Tavaborole is supposed to minimize side effects seen with competing drug such as Penlac and Lamisil while achieving similar or even better efficacy.

Given the near-term timeline for phase III results in January, Anacor shares should run to the upper $5 to low $6 range. Other phase III catalyst stocks -- Celsion (CLSN), Keryx Pharmaceuticals (KERX), Amicus Therapeutics (FOLD) -- have been strong gainers recently. Anacor, by comparison, is trading closer to its 52-week low of $4.50 per share and below the October stock offering at $6 per share. This dilution, however, should mean Anacor won't be raising any money before the phase III results of tavaborole are released next month.

Anacor expects to have $45 million in cash at year end, sufficient to fund its business through a planned approval filing for tavaborole in mid-2013.

There is a high probability for success in the tavaborole phase III clinical trials versus placebo, based on the results of previously conducted phase 2 clinical trials. Additional confidence can be gained by looking at the objective endpoint of eradicating nail fungal infections -- this is not subject to placebo effect or subjective bias.

Tavaborole is currently being evaluated in two pivotal Phase III clinical trials with results from the first trial expected in January and results from the second trial expected approximately six weeks later (March estimate.) Both sets of data will support a planned New Drug Application (NDA) to the FDA in mid-2013 based on guidance from the most recent quarterly update in early November.

In addition, the Company recently disclosed through it completed two Phase 1 safety trials (including a heart rhythm or QT study and repeat skin exposure test) as part of preparations for a planned NDA filing next year.

Run-Up traders who would like to exit safely before data would want to close their positions in Anacor before the end of the year to avoid holding into data.

Messier has no position in Anacor.
Mark Messier is the founder of Messier is a DOJ-certified Criminal Intelligence Analyst and former IT professional, specializing in law enforcement applications. In 2008, Messier began trading biotech stocks, using his analytical expertise to detect and capitalize on human and market patterns. Starting with only $2,200 in his trading account, he has booked over $400,000 in profit in just 4 years. In April 2010, Messier founded the subscription-based stock-trading web site to share his biotech trading ideas with the online investor community. Messier enjoys spending time with his wife and two young boys and visiting his "home away from home" in Costa Rica.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ANAC $66.15 5.40%
AAPL $93.66 -0.09%
FB $118.58 0.85%
GOOG $698.30 0.76%
TSLA $241.82 0.44%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs