ANACOR TO PRESENT EFFICACY RESULTS ON LEAD DRUG CANDIDATES

Clinical Data on AN2690, AN0128 Among Six Presentations at European Society for Dermatological Research Meeting

Palo Alto, CA and Paris - Sept. 7, 2006 - Anacor Pharmaceuticals, a privately held pharmaceutical company, today announced it will present six posters at the European Society for Dermatological Research Meeting in Paris this week, including interim results from a 60-patient open-label trial of AN2690, its topical antifungal drug candidate being developed for onychomycosis, a fungal infection of the toenail and nail bed. Halfway through the six-month, Phase 2 trial, no nail samples were dermatophyte-positive, and 67 percent of subjects had sufficient clear nail growth to be considered responders.

A separate presentation at the meeting will detail a second study of 15 patients receiving AN2690 that shows levels of the drug in the bloodstream are below the level of quantification and that no patients in that trial had a positive fungal culture after four weeks.

"These and other results strongly suggest that AN2690 could be the first topical treatment for onychomycosis with efficacy that is comparable to oral treatments," said Dr. Karl Beutner, chief medical officer at Anacor. "In addition, our clinical work has shown the drug appears to be free of systemic side effects."

Anacor researchers will also present data from the development program for AN0128, Anacor's treatment for atopic dermatitis. Results from a 103-patient Phase 2a study show that 51 percent of patients treated with AN0128 were judged to have skin that was "clear" or "almost clear," as compared with 37 percent of patients treated with the vehicle treatment, and an analysis of patients with more severe disease found an even greater difference between AN0128 and the vehicle cream.

AN2690 Presentations:

Nail Penetration Of AN2690: Efficacy Coefficient And Effect Of Formulation
Abstract: 091
Presentation Time: Friday, September 8, 2 p.m. to 4 p.m.

Interim Results of a Multi-Center Study to Evaluate the Safety and Efficacy of Topically Applied AN2690 5.0% and 7.5% Solution for the Treatment of Onychomycosis of the Great Toenail
Abstract: 565
Presentation Time: Friday, September 8, 2 p.m. to 4 p.m.

An Open-Label, Multiple-Dose Study of the Absorption and Systemic Pharmacokinetics of AN2690 Applied as a 7.5% Solution to All Toenails of Adult Patients with Moderate to Severe Onychomycosis
Abstract: 566
Presentation Time: Saturday, September 9, 3:30 to 5:30 p.m.

AN0128 Presentations

New AN0128 Formulations Improve Skin Penetration And In Vivo Efficacy
Abstract: 094
Presentation Time: Saturday, September 9, 3:30 to 5:30 p.m.

AN0128 Inhibits Pro-Inflammatory Cytokine Production in a Macrophage Cell Line by Inhibiting the p38 MAP Kinase
Signal Transduction Pathway
Abstract: 346
Presentation Time: Saturday, September 9, 3:30 to 5:30 p.m.

A Randomized, Double-Blind, Vehicle-Controlled, Multi-Center Study to Evaluate the Safety and Efficacy of Topically Applied AN0128 1% Cream for the Treatment of Mild to Moderate Atopic Dermatitis
Abstract: 567
Presentation Time: Friday, September 8, 2 p.m. to 4 p.m.

About Anacor Pharmaceuticals
Anacor, a privately held, clinical-stage pharmaceutical company, is developing novel product candidates for inflammatory and infectious diseases based on its proprietary, small-molecule, boron-based chemistry. Initially, Anacor is focusing development efforts on dermatological disorders with AN2690 in Phase 2 trials for onychomycosis, a fungal infection of nails and nailbeds. A second product candidate, AN0128, is in Phase 2 clinical trials for atopic dermatitis.