|Anacor Hits All Time High After Skin Ointment Success|
|By Josh Gee|
|Monday, 13 July 2015 15:45|
Anacor Pharmaceuticals Inc. (NASDAQ:ANAC)’s skin ointment has found success in studies taking it closer to having a potential blockbuster and it may increase expectations which may be taken over.
The firm’s shares shot up by four times in the last year and touched a life high of $135.24 morning.
Paul Yook, portfolio manager at BioShares Biotechnology Funds, opined that he would be glad to see the firm be a little bit longer. Analysts opine that they are anticipating ointment to eclipse $1 billion in sales as well as be prescribed as a first-line treatment for atopic dermatitis. Hence, Anacor would be an attractive target. Yook opined that potential bidders may have Allergan Plc, Novartis AG and Japan's Astellas Pharma Inc. Yook opined that he is expecting offer for Anacor at per share premium of 50-90 percent.
This is comparable to 23.5 percent premium Allergan agreed to pay for Kythera Biopharmaceuticals in a $2.1 billion deal in June. Yook added that Anacor is the holy grail of biotech company investment.
The ointment, Crisaborole, got approval of two late-stage studies testing it for use in atopic dermatitis. Atopic dermatitis impacts about 18-25 million people in the United States. Existing treatments include topical cortical steroids that can lower skin quality as well as non-steroidal treatments like Novartis AG's Elidel and Astellas Pharma US Inc's Protopic, which have been linked with cancer.
Other firms developing treatments for atopic dermatitis include Oculus Innovative Sciences Inc, Regeneron Pharmaceuticals, Pfizer Inc and Celsus Therapeutics Plc.
Palo Alto, California-based Anacor opined that it is expecting to do a submission of marketing application for the drug in the first half of 2016.