Anacor Issues Update on Arbitration with Valeant, Says Prelim. Injunction Hearing Cancelled

Anacor Pharmaceuticals

today announced that Valeant Pharmaceuticals International, Inc.

, or Valeant, has agreed that the launch of efinaconazole, its topical product candidate for the treatment of onychomycosis, will not occur until after the September 2013 arbitration hearing to resolve our breach of contract dispute with Valeant. As a result, the preliminary injunction hearing which was scheduled for May 6-8, 2013 has been canceled. As previously disclosed, in October 2012, we provided notice to Valeant, successor in interest to Dow Pharmaceutical Sciences, Inc., or DPS, seeking to commence arbitration with JAMS of a breach of contract dispute under a master services agreement dated March 26, 2004 between DPS and us related to certain development services provided by DPS in connection with our efforts to develop tavaborole, our topical antifungal product candidate for the treatment of onychomycosis. We have asserted claims for breach of contract, breach of fiduciary duty, intentional interference with prospective business advantage and unfair competition. We are seeking injunctive relief and damages of at least $215.0 million. The final arbitration hearing is currently scheduled for September 2013, and we expect the resolution of the arbitration to occur in the second half of 2013. We have carefully reviewed our position and believe that we have meritorious claims; however, we will need to prove such claims in the arbitration hearings.