ANACOR PHARMACEUTICALS RAISES $25 MILLION IN SERIES C FINANCING

New Investments from Care Capital, Venrock Associates to Fund Clinical Development

Palo Alto, Calif., May 11, 2005 - Anacor Pharmaceuticals, a biotechnology company developing novel pharmaceuticals for dermatology, today announced that it has raised $25 million in Series C financing. The financing was co-led by Care Capital and Venrock Associates. Other new investors included Red Abbey Venture Partners and individuals associated with the company. Existing investors Aberdare Ventures and Rho Ventures also participated in the round.

The financing will be used to fund the clinical development of Anacor's first two products through Phase II studies and to advance other research programs. Anacor also announced today that Richard J. Markham, partner, Care Capital and Anders Hove, general partner, Venrock Associates have joined the company's board of directors.

"Anacor's unique boron chemistry coupled with its advanced stage of development places the company in a strong position to quickly bring new therapeutics to market," stated Markham. "The experienced team at Anacor is well-versed in the intricacies of guiding new products through the clinical development process. Care Capital is pleased to participate as a co-lead in this round and I look forward to being actively involved in the success of the company."

"Anacor is targeting promising markets through the development of new therapeutics for specific dermatological disorders," stated Hove. "Venrock has a long, proven history of helping our portfolio companies create value from their intellectual capital, and Anacor's broad platform has the potential to produce a number of successful products."

"We're pleased that these two highly reputed firms, Care Capital and Venrock Associates, have recognized Anacor's potential to quickly address unmet needs in dermatology," stated David Perry, CEO of Anacor Pharmaceuticals. "As we move forward in the clinical development of our novel therapeutics, the support and expertise of our new investment partners will prove a valuable asset for the company."

About Venrock Associates
Venrock Associates was founded as the venture capital arm of the Rockefeller Family and continues a six-decade tradition of funding outstanding entrepreneurs and establishing successful, enduring companies. Venrock was formed in 1969 to build upon the successful investing activities of the Rockefeller Family that began in the late 1930s, when Laurance Rockefeller pioneered early-stage venture financing. Today, having invested more than $1.3 billion into more than 350 companies over the past 35 years, Venrock is one of the most established venture firms in the United States, with investment returns that place it among a small number of premier organizations that have achieved consistently superior performance. Venrock's investments include Apple Computer, Check Point Software, DoubleClick, Intel, 3Com, Caliper Technologies, Centocor, Illumina, and Millennium Pharmaceuticals. For more information, visit www.venrock.com.

About Care Capital
Care Capital is a life sciences investment firm focused on later stage drug development opportunities in pharmaceutical and biopharmaceutical companies. For more information, visit www.carecapital.com.

About Anacor
Anacor Pharmaceuticals is engaged in the discovery and development of novel drugs based on proprietary boron chemistry. Anacor is currently leveraging its expertise and intellectual property to develop and commercialize drugs for dermatology. The company's technology is based on work originally conducted by Dr. Lucy Shapiro at Stanford University and Dr. Stephen Benkovic at Pennsylvania State University. Privately held and based in Palo Alto, Calif., Anacor is funded by Aberdare Ventures, Care Capital, Rho Ventures and Venrock Associates. For more information, visit www.anacor.com.