Myriad Pharmaceuticals on Wednesday agreed to buy Panacos Pharmaceuticals Inc.'s HIV drug candidate bevirimat for $7 million.
Myriad will not owe Panacos any milestone or royalty payments on bevirimat, which is currently in mid-stage clinical testing. Myriad said it will handle all clinical and commercial development of the drug. Bevirimat is being studied in both tablet and liquid formulations.
Myriad said it will include the payment in its results for the fiscal third quarter, which ends March 29.
The companies said Watertown, Mass.-based Panacos has completed 15 studies on bevirimat, involving more than 100 HIV patients and a total of about 650 people.
In December 2007, Panacos reported disappointing trial results for bevirimat, as a 350 mg dose of the drug appeared to be less effective than a 300 mg dose. The company later concluded that patients who few mutations on a protein have called HIV Gag are more likely to have a strong response to bevirimat.
Myriad Pharmaceuticals is a unit of Salt Lake City-based Myriad Genetics Inc. The pharmaceutical business is being spun off into a separate publicly traded company, a process expected to be complete by the end of the second quarter.
The remaining Myriad Genetics business will focus on predictive and personalized medicine.