Anacor Pharmaceuticals, Inc.
) inked a deal with the Bill & Melinda Gates Foundation for
the discovery of drug candidates for the treatment of two
filarial worm diseases (onchocerciasis / river blindness and
lymphatic filariasis (elephantiasis)) and tuberculosis
Anacor will also create an expanded library of boron compounds
which will screen additional potential drug candidates for the
treatment of neglected diseases. The Gates Foundation will have
access to this expanded library.
As per the terms of the agreement, the Gates Foundation will
make a $17.7 million payment to Anacor. Anacor issued 809,061
shares at a purchase price of $6.18 per share. In addition to
$17.7million, the Gates Foundation bought these shares which
aggregates to $5 million.
We are positive on the research collaboration as it provides
Anacor with the required monetary support to continue its
research on neglected diseases. As per the information provided
by Anacor, river blindness afflicts more than 37 million people,
mainly in Africa. It is the second most common cause of
infectious blindness. In Nov 2010, Anacor had signed a research
and development collaboration agreement with the Sandler Center
to discover new therapies for river blindness.
Even TB has a good market potential with more than 1.6 million
people dying from TB globally each year.
Anacor Pharma carries a Zacks Rank #3 (Hold). Currently,
) carry a Zacks Rank #1 (Strong Buy) while
Avanir Pharmaceuticals, Inc.
) holds a Zacks Rank #2 (Buy).
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