Anadys Pharmaceuticals Reports First Quarter 2008 Financial Results and ...( the enhancement of the apoptotic e...)

the enhancement of the apoptotic effect when added to either

vincristine or fludarabine. The other poster reported that in vivo

immunostimulatory responses to ANA773 can be effectively modified by

varying the schedule of dose administration, including every other day

dosing (QOD), and three consecutive days of dosing within each seven

day cycle (3-on, 4-off).

Program Updates and Revised Cash Outlook for 2008

-- ANA598 Development Activities. Based on promising results from the

preclinical evaluation of ANA598, Anadys has made the strategic

decision to accelerate certain non-clinical activities for this

program, including further manufacturing of drug substance and

conducting additional toxicology studies. These studies include a

combination toxicology study with ribavirin that will support the

clinical investigation of ANA598 in combination with interferon and

ribavirin, as well as studies extending the duration of dosing beyond

the recently completed 28 day toxicology study. If ANA598 is

successful in early stage clinical trials, it is anticipated that the

acceleration of these non-clinical activities into 2008 will enable a

more rapid and continuous development path into mid-stage clinical

trials during 2009.

-- ANA773 Development Activities. Anadys continues to explore the safety

and tolerability profile of ANA773 in the ongoing Phase I trial and

expects to identify pharmacologically active doses and establish the

profile of immune stimulation this year, which information will support

the future design of clinical trials of ANA773 (alone or in

combinations) in specific tumor types. While Anadys expects the rate

of enrollment in the ANA773 oncology trial to increase in the coming

quarters, the Company now expects the pac
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