Anacor receives loan to fund new drug campaign

By IVCPOST Staff Reporter

Jun 12, 2013 11:43 AM EDT

Hercules Technology Growth Capital loaned $45 million to Palo Alto, California-based Anacor Pharmaceuticals, representatives from Anacor said today. The loan shall be distributed in tranches.

An initial tranche of $30 million was loaned to Anacor after the agreement to load was approved on June 7. The company used an estimated $22.6 million to pay back the obligations incurred upon during the agreement with Oxford Finance LLC and Horizon Technology Finance Corporation.

Anacor plans to use what is left of the tranche to invest on its New Drug Application campaign for a product called tavaborole. Further research on the drug and a working capital are also part of the company's budget for the tranche.

Anacor will receive the second tranche on a date that the company will set for itself. The second tranche is worth $10 million, while the third is $5.0 million.

"This financing extends our cash runway through mid-2014 and gives us additional financial flexibility as we prepare for the outcome of our arbitration with Valeant, continue to evaluate commercialization options for tavaborole, and prepare for the Phase 3 development of AN2728 in atopic dermatitis," said Anacor's Chief Finance Officer Geoff Parker.

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