AN2718 is our product candidate for the topical treatment of tinea pedis, or athlete's foot, and vaginal candidiasis, or yeast infections. AN2718 is an antifungal that utilizes the same mechanism as AN2690, our topical product candidate for treatment of onychomycosis.

AN2718 has demonstrated in preclinical studies that it has activity against fungal strains that cause infection of the skin and the yeasts associated with vaginal candidiasis, including those resistant to commonly used treatments. AN2718 appears to be well suited to target organisms that cause common skin and topical fungal infections, including trichophyton and candida fungi. The low molecular weight of AN2718 has the potential for improved bioavailability in the thick skin of the foot. Unlike the commonly used topical, Lamisil, AN2718's activity is not inhibited by keratin, which is a major component of the skin.

We filed an IND for the use of AN2718 to treat tinea pedis in February 2008, and currently intend to begin testing the topical compound in clinical trials in 2008. For tinea pedis, the clinical development plan includes Phase 2a trials to demonstrate antifungal activity and to estimate the magnitude of the clinical response in a wide spectrum of clinical disease. We currently intend to evaluate the development of AN2718 in vaginal candidiasis and other indications after we complete our initial efficacy study in tinea pedis.