Panacos is engaged in the discovery and development of novel therapeutics and technologies to combat major viral diseases.  Currently, the Company's focus is on Human Immunodeficiency Virus (HIV).

HIV

Human Immunodeficiency Virus (HIV) is a member of the lentiviruses, a subfamily of retroviruses.  HIV infects and invades cells of the immune system; it breaks down the body’s immune system and renders the patient susceptible to opportunistic infections and neoplasms. The immune defect is progressive and irreversible, with a high mortality rate that approaches 100% over several years if untreated.

According to the 2005 Joint United Nations Program on HIV/AIDS, over 40 million adults and children worldwide are infected with HIV.  In North America and Western Europe, HIV infects approximately 1.7 million people. Approximately 300,000 to 400,000 patients are treated for HIV in the United States annually.

The worldwide market for HIV drugs was estimated to be in excess of $7.5 billion in 2005, with 60% of sales in the U.S. and 28% in Europe.  In the 12-month period between June 2004 and June 2005, the worldwide market grew 12%.  These trends are expected to continue or accelerate as a result of the combined effects of increases in the treatment population and increasing drug resistance.  The greatest market need continues to be for patients who have been treated with ARVs but have detectable viral loads.  This group represents approximately 40-45% of the infected population.