Biotech Values

[DewDiligence]

Will PANC be yet another bankruptcy filer?
They seem to be dancing close to the precipice.

http://biz.yahoo.com/bw/081122/20081122005025.html

›Panacos Announces Repayment of Hercules Loan

Saturday November 22, 12:00 pm ET

WATERTOWN, Mass.--(BUSINESS WIRE)--Panacos Pharmaceuticals, Inc. (NASDAQ: PANC ), a biotechnology company dedicated to developing the next generation of antiviral therapeutic products, today announced it has negotiated terms to terminate its relationship with Hercules Technology Growth Capital, Inc. (NASDAQ: HTGC ). This termination comes after negotiations between the two companies, which resulted from Hercules’ claim, delivered on November 19, 2008, that Panacos was in default of the terms of its June 2007 loan agreement. Panacos vigorously disputed the claim that a default had occurred, and in response Hercules has withdrawn its default notice.

Under the terms of the agreement between the parties, Panacos will pay all of the outstanding principal and interest due under the $20 million loan agreement with Hercules, as well as certain expenses, for a total of approximately $17.9 million, on Monday, November 24, 2008. Hercules agreed to waive $125,000 of amounts otherwise payable under the loan agreement.

In addition, Panacos announced that while it continues to pursue financing options and seeks partnerships for its compounds and programs, in order to continue its work in developing novel antiviral therapeutics, it is also actively assessing strategic alternatives, including a restructuring of the Company.‹