UPDATE: Canaccord Genuity Reiterates Buy Rating, Lowers PT on Anacor Pharmaceuticals

In a report published Wednesday, Canaccord Genuity reiterated its Buy rating on Anacor Pharmaceuticals ANAC, but lowered its price target from $9.00 to $5.00. Canaccord Genuity noted, “Maintaining BUY but lowering target to $5 from $9 as tavaborole's potential in onychomycosis becomes uncertain and AN2728 potential in AD (next data Q1/13) becomes a larger driver. Tavaborole, ANAC's Phase 3 topical antifungal for toenail fungus (onychomycosis), may be approvable, but efficacy rates lower than a competitor will likely limit market potential. We also think ANAC's second drug, AN2728, will have positive Ph2b data in atopic dermatitis (AD) in 2013. Our $5 target is based on pNPV analysis.” Anacor Pharmaceuticals closed on Tuesday at $4.11.