Merck & Co returns rights to anti-fungal drug to Anacor

California-based Anacor Pharmaceuticals says that US drugs giant that Merck & Co has returned full worldwide development and commercialization rights for AN2690 to Anacor, a topical anti-fungal therapy being developed for onychomycosis, a fungal infection of the nail and nail bed, estimated to affect around 35 million people in the USA.

Merck acquired the product along with its $41.1 billion acquisition of Schering-Plough last year, under which - in February 2007 - the latter agreed to pay an upfront $50 million plus a potential $575 million in milestones for access to the Phase II developmental drug, with Anacor retaining US co-promotion rights to dermatologists in that market.

"With our Merck colleagues, we have successfully advanced AN2690 to this late-stage of development," said David Perry, chief executive of Anacor. "Together, we successfully completed an "end of Phase II" meeting with the Food and Drug Administration and we are confident that this 'Phase III-ready' candidate targeting a large patient population represents a compelling opportunity for an underserved market."