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Anadys Pharmaceuticals Reports Second Quarter 2008 Financial Results and Highlights
Date:7/30/2008

etion of the healthy volunteer study, Anadys plans to transition rapidly to a short-term Phase Ib study of ANA598 in HCV-infected patients by early fourth quarter.

-- Acceleration of ANA598 Development Activities. In late April, Anadys announced the acceleration of certain non-clinical activities for ANA598 into 2008 in order to enable a more rapid advancement into Phase II trials in 2009. The decision to accelerate the non-clinical development activities for ANA598 was based on promising results from the preclinical evaluation of ANA598.

-- Additional Mechanism in Hepatitis C Development. In early July, Anadys announced the expansion of its development efforts in HCV to include clinical investigation of ANA773, its oral Toll-Like Receptor 7 (TLR7) agonist. As an approach to treat hepatitis C, the TLR7 mechanism is independent from, and potentially complementary to, ANA598. Results of recently completed 13-week GLP toxicology studies have shown that with every-other-day dosing of ANA773, immune stimulation of a magnitude believed to confer therapeutic potential can be achieved without adverse toxicology findings.

-- Initiation of Phase I Clinical Trial of ANA773 in HCV. Following the Company's announcement of its plans to study ANA773 in HCV, dosing in healthy volunteers has commenced in Part A of the ANA773 HCV Phase I clinical trial. The primary objectives of Part A of the study are to assess safety and tolerability. Part B of the study, which will explore every-other-day dosing over 28 days in HCV-infected patients, is expected to begin early in the fourth quarter. The primary objectives of Part B are to assess safety, tolerability and viral load decline.

-- Phase I Clinical Trial of ANA773 in Oncology. Anadys continues to enroll patients in an ongoing Phase I Clinical Trial of ANA773 in oncology. The Company expects to identify a pharmacologically active dose and establish the profile of immune stimulation by year-end, which will supp
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