AN2898 is our second topical anti-inflammatory product candidate for psoriasis and atopic dermatitis. AN2898 is a novel boron-containing small molecule phosphodiesterase 4 (PDE4) inhibitor that reduces the production of TNF-alpha, IL-12, IL-23, and other cytokines. Because AN2898 is applied topically, the potential for systemic side effects is anticipated to be relatively low compared to the systemically administered therapeutics.

In a Phase 1b trial, in psoriasis, AN2898 demonstrated statistically significant efficacy. Based on these results, Anacor expects to initiate a Phase 2 trial in atopic dermatitis in the first half of 2010.