Palo Alto’s Anacor Pharmaceuticals, a company developing a topical anti-fungal therapy currently in Phase 2 clinical trials, said it will receive a $40 million upfront payment and a $10 million financing commitment from Schering-Plough.

As part of the deal, Anacor enters into an exclusive, worldwide agreement with Schering-Plough for development and commercialization of the drug, called AN2690. The drug treats onychomycosis, a fungal infection of the nail and nail bed that affects 7 to 10 percent of the U.S. population.

See full details of the deal here.
More info is here.

Additionally, Anacor is eligible to receive payments potentially exceeding $575 million for development, regulatory and commercial milestones, and Anacor will receive double-digit royalty payments on future sales.