Panacos Pharmaceuticals (PANC)

[DewDiligence]

PANC can do a deal, but I don’t think it will be an especially lucrative one.

The third-line and later-line settings are shrinking because of the immense success of Truvada and Atripla, which have patients remaining on first- and second-line regimens longer than ever before.

With very few exceptions, any new big-selling drug for HIV will have to: i) match or beat Sustiva, Reyataz, or Kaletra in a head-to-head study with a Truvada backbone; and ii) be able to be co-formulated with Truvada in a single qD pill.