Anacor Pharmaceuticals (NASDAQ:ANAC) is a biopharmaceutical company which develops small-molecule drugs through boron chemistry. This means that Anacor focuses on using the element boron to develop drugs to solve problems of fungal growth, inflammations, and bacterial and parasitic diseases. The company is developing 5 drug candidates which are all in clinical trials. The most advanced drug, AN2690, is an anti-nail fungal drug is expected to enter Phase 3 clinical trials by the end of 2010.
Anacor entered an agreement with GlaxoSmithKline (GSK) in October of 2007. The research and development agreement is over the discovery and sale of boron-base anti-infectives. As part of the agreement, GSK paid $12M in an upfront fee and will pay between $252.8M and $330.5M if certain milestones are reached. The agreement also gives Anacor access to royalty fees if a drug is commercialized. GSK has invested $30M in preferred stock of Anacor and has paid an additional $25.1M in licensing fees through the agreement.
The company's initial public offering of stock on the NASDAQ occurred on November 23, 2010. The company offered 12M shares each for $5 each. This offering lead to a total of $60M raised through the IPO. The company had originally planned to sell 4.7M shares with a initial range of $16-$18. The company also raised $10M from a separate Venture Capital Investment by Venrock. The lead underwriters of the deal were Citi and Deutsche Bank AG (DB).
Because Anacor does not have any drugs which are authorized for sale, its only revenue comes in the the form of either contracts and agreements or grants. Through this, Anacor, received $19M in revenue in 2009, a 24% drop as compared to 2008. The company has consistently reported a net loss as it is still in the research and development stage. Anacor reported a net loss of $25M in 2009, which was a 14% larger loss than in 2008. As a result, the company has accumulated a total debt of approximately $104M and plans to use the proceeds of the IPO to manage its debt and fund continued research and development.