ANACOR ANNOUNCES POSITIVE RESULTS FROM PHASE 1 TRIAL OF AN2718

Palo Alto, Calif. - March 4, 2009 - Anacor Pharmaceuticals today announced positive results from a Phase 1 clinical trial of AN2718, an investigational topical anti-fungal product candidate for the potential treatment of skin and nail infections. At various concentrations, AN2718 gel showed low irritation potential, leading investigators to conclude that application site reactions in future efficacy trials would be unlikely.

In this 21-day cumulative irritation study, AN2718 gel at 1.5%, 2.5%, 5.0% and 7.5% and AN2718 cream at 0.3% and 1.0% were compared to their respective vehicles. All doses of AN2718 gel, cream and vehicle were applied to the skin of normal volunteers for 21 days using semi-occlusive, adhesive patches. Application sites were then evaluated daily for signs of irritation. The irritation indices for all AN2718 doses were very low and comparable to vehicle.

"The absence of irritation seen in this study suggests that future efficacy and dosing studies will not be limited by tolerability," said Karl R. Beutner, M.D., Ph.D., Senior Vice President and Chief Medical Officer of Anacor Pharmaceuticals. "We look forward to initiating a Phase 2 clinical trial later in the year to further evaluate the potential of AN2718."

AN2718 is a novel boron-containing small molecule that inhibits an essential protein synthesis enzyme, leucyl-transfer RNA synthetase, or LeuRS. This enzyme plays an essential role in fungal protein synthesis by attaching the leucine amino acid to transfer RNA, or tRNA.

About Anacor Pharmaceuticals
Anacor is a biopharmaceutical company developing novel small molecule therapeutics derived from its boron chemistry platform. Anacor has focused initially on developing topical applications of its compounds to treat fungal, bacterial and inflammatory diseases. In addition, the Company is developing systemic antiviral and antibacterial therapeutics under a research and development agreement with GlaxoSmithKline. Anacor's most advanced product candidate is AN2690, a novel topical antifungal in development for the treatment of toenail onychomycosis, which is a fungal infection of the nail and nail bed. AN2690 is licensed to Schering-Plough Corporation under a worldwide development and commercialization agreement for all indications including the treatment of onychomycosis. For more information visit www.anacor.com.

Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding the progress of our clinical trials and the safety and efficacy of our product candidates. These statements relate to future events and involve known and unknown risks, uncertainties and other factors that could cause actual levels of activity, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. Some factors that may affect these forward-looking statements include, but are not limited to, delays in the completion of our clinical trials, clinical failure at later stages of development and undesirable effects from our product candidates. These statements reflect the views of Anacor as of the date of this press release with respect to future events and, except as required by law, it undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release.

Contact:
Anne Bowdidge
650-543-7575