Biotech Values

[DewDiligence]

Re: IDIX / GSK’s plans for IDX899

#1 – Co-formulating Epzicom in a fixed dose triple combo with a better NNRTI [IDX899] with no overlapping tox, may boost sales.

#2 – Another possible direction for GSK is to combine IDX899 with their qd integrase inhibitor currently in phase II

I lean toward #2 as the primary driver for the IDX899 deal for the reason mentioned in my previous post: #1 by itself does not have a lot of economic upside. There is no miracle addend—not even IDX899—that is capable of remaking Epzicom into a state of the art product.

On the other hand, if the primary impetus for the IDX899 deal is #2 (combining IDX899 with GSK’s integrase inhibitor or another early-stage drug in GSK’s pipeline), then any incremental revenue from #1 can be viewed as “gravy.” The mechanical co-formulation of IDX899 and Epzicom into a single pill should be trivial because the IDX899 therapeutic dose is so small.