First class letdown

In September 2005, Panacos Pharmaceuticals Inc. was a rising star with a $500 million market cap and a lead compound in Phase IIa testing to treat HIV. Last week, more than three years later and with the same candidate stuck in Phase IIb, Pancos sold bevirimat to Myriad Pharmaceuticals Inc. for $7 million in cash.

Panacos has now returned to what is essentially a seed-stage company with a $3.7 million market cap and lead programs in preclinical development...