Anacor Pharmaceuticals Swings to a Profit

   By Erin McCarthy 
 

Anacor Pharmaceuticals Inc. (ANAC) said it swung to a profit in the fourth quarter, driven by gains from a litigation settlement and a rise in revenue.

Shares of the company rose more than 3% in after-hours trading as the company's revenue beat market expectations.

Revenue more than doubled to $8.5 million. Analysts polled by Thomson Reuters had expected $2.85 million in revenue.

For the quarter, the biopharmaceutical company reported a profit of $130.7 million, or $3.01 per share, compared with a loss of $12.5 million, or 36 cents a share, a year earlier.

A litigation settlement with Valeant Pharmaceuticals International Inc. (VRX) provided the main boost to its bottom line. In October, Valeant agreed to pay $142.5 million to Anacor to resolve all outstanding disputes between the two companies. The settlement resolved litigation over alleged breaches of contract involving Valeant units Dow Pharmaceutical Sciences Inc. and Medicis Pharmaceutical Corp.

Write to Erin McCarthy at [e-mail]

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