Replies to post #23197 on Biotech Values

[Tried]

John: PANC is developing PA-457, a new class of HIV drug. The drug has the potential of becoming a first line drug, meets the gold standard of once a day dosing, has also been granted fast track status by the FDA.

I have copy/pasted a section from the Panacos website titled "Overview". Here is the link: http://www.panacos.com/product_2.htm

Overview
The Company's lead compound, PA-457, is the first in the new class of HIV drugs called Maturation Inhibitors that specifically block a late step in processing of the HIV Gag protein. Following PA-457 treatment, virus particles released from HIV-infected cells are non-infectious and virus replication is terminated. This antiviral target is unique to Panacos and the Company is building a strong intellectual property position around its ground-breaking discovery.

Studies have shown that PA-457 is a potent inhibitor of HIV isolates that are resistant to currently approved drugs. Furthermore, PA-457 exhibits potent antiviral activity in an animal model of HIV infection, the SCID mouse model. Following oral administration of PA-457 to HIV-infected SCID mice, the level of HIV replication was reduced by more than 90%. PA-457 also potently inhibited replication of an HIV strain resistant to the approved drug AZT in this animal model.

PA-457 has several other positive characteristics supporting its further development. These include data from several studies demonstrating that the compound should not be subject to metabolic interactions with currently approved HIV drugs, reducing the chance of drug-drug interactions when used in combination therapy. Indeed, PA-457 is synergistic in antiviral activity when tested in mixtures with approved drugs.

In addition to its utility as a new therapy for patients failing current treatments due to drug resistance, Panacos believes PA-457 may also be suitable for first-line therapy of HIV infection. In either case, it is likely that peak annual sales of PA-457 could grow well in excess of $500 million per year and approach $1 billion if it is successfully brought to market.

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And here is the link to the results of the Phase 2A trial released in August, 2005: http://www.panacos.com/ir_press_releases/pr_08_22_05.htm

The FDA requested the company conduct a drug interactive study prior to beginning Phase 2B clinical trial. Results of this study are due anytime within the next month.

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Here is the HOME page for Panacos. http://www.panacos.com/index.htm

Click on "Link to Webcast" for a summary of the history of PA-457 to date and also info on the company.

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I'm pretty sure what you'll hear and read will answer why I like PANC. I am curious about your comment: not understanding why people are buying the stock. Could you comment further as to why? Thanks.

Tried