AN2898 is our second anti-inflammatory product candidate for psoriasis and atopic dermatitis. Like AN2728, AN2898 is a novel boron containing small molecule that inhibits PDE4 and reduces the production of both TNF-alpha, a precursor of the inflammation associated with psoriasis and atopic dermatitis, and other cytokines, including IL-12 and IL-23. AN2898 has a similar mechanism of action to that of AN2728 and appears to work in a larger set of animal models, which may predict greater clinical efficacy than AN2728 in atopic dermatitis.

In December 2011, we announced the results of our Phase 2a trial AN2728 and AN2898 in mild-to-moderate atopic dermatitis. The primary endpoint for both compounds was successfully achieved and there were no severe adverse events reported that were considered related to either study drug. Plans for further development of either compound in atopic dermatitis will be announced in early 2012.

We are also evaluating AN2898 for the treatment of psoriasis. However, we expect AN2728 to remain our lead product candidate in psoriasis since it has reached a more advanced stage of clinical development.

For more information about our clinical trials for AN2898, follow this link: http://www.clinicaltrials.gov/ct2/results?term=an2898.