By the end of this year, Anacor plans to announce data from the phase two safety, pharmacokinetics, and efficacy study related to AN2728. AN2728 is a topical anti-inflammatory product candidate for the treatment of dermatitis and psoriasis in adolescents. The company expects to initiate phase two trials in children ages 2-11 shortly after the announcement of these results.
Dependent on positive phase two trials, the company expects to initiate a phase three trial in atopic dermatitis in mid-2013.
Also during the third quarter conference call, Anacor referred to its cash position and spoke about the offering of stock I wrote about earlier. The company believes that its existing cash, cash equivalents and short-term investments totaling approximately $36.6 million as of September 30, 2012 and the net proceeds of approximately $22.7 million from the October 2012 sale of 4,000,000 shares of the company’s common stock will be sufficient to meet its anticipated operating requirements until it files its NDA for Tavaborole in Onychomycosis. This is currently expected to occur in the middle of next year. If necessary, the company would make appropriate adjustments to its spending plan in order to ensure sufficient capital resources to complete this filing.
From the chart above, Anac has begun to trade upwards in advanced of the catalyst events mentioned here. The Relative Strength Index (RSI) is turning bullish again and volume is also picking up. The MACD Histogram also indicates this. During the recent run, we can see higher highs and high lows displayed. It’s my opinion a short term price target of $6 is on the horizon.
| Share Statistics: |
|
|
Avg Vol (3 month): |
110,415 |
|
Avg Vol (10 day): |
128,057 |
|
Shares Outstanding: |
35.57M |
|
Float: |
23.78M |
|
% Held by Insiders: |
36.49% |
|
% Held by Institutions: |
68.90% |
Shares Sold Short:
Short Positions (10/31/2012) 431,065 Shares
Change from Last -13.04%
Percent of Float 2.06%
Anac’s current price is $5.40 a share with a market cap of $192.07M.
The stock should see a move to around $6 soon. Depending on stock market conditions next year and positive results for Anac’s trials, a stock price over $10 a share is not out of the question.
By Scott Matusow
Stockmatusow.com