##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For
the transition period from

to
 Commission File No. 0-50772
 INHIBITEX, INC.
  Delaware
(State or other jurisdiction of 
incorporation or organization)
    
    74-2708737
(I.R.S. Employer Identification No.)9005 Westside Parkway 
Alpharetta, Georgia
(Address of principal executive
offices)
    
    30009
(Zip Code)
 (678) 746-1100    Not Applicable
 þ o
 Yes o
No o
 Rule 12b-2 of the Exchange Act.
(Check one):
 Large Accelerated Filer o
    
    Accelerated Filer o
    
    Non-Accelerated Filer o
    
    Smaller Reporting Company þ
 o þ




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##### 



TABLE OF CONTENTS
 PAGEPART I  FINANCIAL INFORMATIONItem 1. Financial StatementsConsolidated Balance Sheets as of September 30, 2009 and December 31, 2008
    
    
    3Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2009 and 2008
    
    
    4Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2009 and 2008
    
    
    5Notes to Unaudited Consolidated Financial Statements
    
    
    6Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    11Item 4T. Controls and Procedures
    
    
    17PART II  OTHER INFORMATIONItem 1A. Risk Factors
    
    
    18Item 6. Exhibits
    
    
    20Signatures
    
    
    21Exhibit Index
    
    
    22Exhibit 10.55EX-31.1 SECTION 302 CERTIFICATION OF THE CEO & CFOEX-32.1 SECTION 906 CERTIFICATION OF THE CEO & CFO
   2




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##### Table of Contents



PART I
FINANCIAL INFORMATION
 INHIBITEX, INC.
 
 CONSOLIDATED BALANCE SHEETS
 September 30,
    
    
    December 31,2009
    
    
    2008(unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    8,177,449
    
    
    $
    11,507,137Short-term investments
    
    
    12,901,906
    
    
    
    21,634,880Prepaid expenses and other current assets
    
    
    934,172
    
    
    
    621,797Accounts receivable
    
    
    79,443
    
    
    
    108,558Total current assets
    
    
    22,092,970
    
    
    
    33,872,372Property and equipment, net
    
    
    1,698,141
    
    
    
    2,328,707Other assets
    
    
    138,039
    
    
    
    31,876Total assets
    
    $
    23,929,150
    
    
    $
    36,232,955LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    1,492,789
    
    
    $
    1,276,215Accrued expenses
    
    
    1,618,787
    
    
    
    1,001,047Current portion of notes payable
    
    
    78,125
    
    
    
    312,500Current portion of capital lease obligations
    
    
    201,472
    
    
    
    254,291Current portion of deferred revenue
    
    
    441,667
    
    
    
    441,667Other current liabilities
    
    
    202,373
    
    
    
    224,922Total current liabilities
    
    
    4,035,213
    
    
    
    3,510,642Long-term liabilities:Notes payable, net of current portion
    
    
    546,875
    
    
    
    390,625Capital lease obligations, net of current portion
    
    
    234,731
    
    
    
    387,892Deferred revenue, net of current portion
    
    
    125,000
    
    
    
    237,500Other liabilities, net of current portion
    
    
    1,143,411
    
    
    
    1,279,994Total long-term liabilities
    
    
    2,050,017
    
    
    
    2,296,011Total liabilities
    
    
    6,085,230
    
    
    
    5,806,653Stockholders equity:Preferred stock, $.001 par value; 5,000,000
shares authorized at September 30, 2009 and
December 31, 2008; none issued and outstanding
    
    
    
    
    
    
    Common stock, $.001 par value; 150,000,000 and
75,000,000 shares authorized at September 30,
2009 and December 31, 2008, respectively;
43,547,136 and 43,380,570 shares issued and
outstanding at September 30, 2009 and December
31, 2008, respectively
    
    
    43,547
    
    
    
    43,381Warrants
    
    
    13,619,076
    
    
    
    13,742,630Accumulated other comprehensive income
    
    
    7,588
    
    
    
    111,450Additional paid-in capital
    
    
    244,366,603
    
    
    
    243,825,057Accumulated deficit
    
    
    (240,192,894
    )
    
    
    (227,296,216
    )Total stockholders equity
    
    
    17,843,920
    
    
    
    30,426,302Total liabilities and stockholders equity
    
    $
    23,929,150
    
    
    $
    36,232,955
   3




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INHIBITEX, INC.
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Revenue:License fees and milestones
    
    $
    37,500
    
    
    $
    412,500
    
    
    $
    112,500
    
    
    $
    1,237,500Collaborative research and
development
    
    
    250,000
    
    
    
    375,000
    
    
    
    750,000
    
    
    
    1,125,000Total revenue
    
    
    287,500
    
    
    
    787,500
    
    
    
    862,500
    
    
    
    2,362,500Operating expense:Research and development
    
    
    3,945,464
    
    
    
    3,468,184
    
    
    
    11,123,072
    
    
    
    8,982,333General and administrative
    
    
    831,264
    
    
    
    1,519,205
    
    
    
    2,840,108
    
    
    
    4,083,112Total operating expense
    
    
    4,776,728
    
    
    
    4,987,389
    
    
    
    13,963,180
    
    
    
    13,065,445Loss from operations
    
    
    (4,489,228
    )
    
    
    (4,199,889
    )
    
    
    (13,100,680
    )
    
    
    (10,702,945
    )Other income, net
    
    
    1,562
    
    
    
    5,077
    
    
    
    39,634
    
    
    
    19,557Interest income, net
    
    
    15,929
    
    
    
    239,280
    
    
    
    164,368
    
    
    
    1,071,182Net loss
    
    $
    (4,471,737
    )
    
    $
    (3,955,532
    )
    
    $
    (12,896,678
    )
    
    $
    (9,612,206
    )Basic and diluted net loss per share
    
    $
    (0.10
    )
    
    $
    (0.09
    )
    
    $
    (0.30
    )
    
    $
    (0.22
    )Weighted average shares used to
compute basic and diluted net loss
per share
    
    
    43,545,057
    
    
    
    43,273,487
    
    
    
    43,499,678
    
    
    
    42,992,372
   4




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INHIBITEX, INC.
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS  (unaudited)
 Nine Months EndedSeptember 30,2009
    
    
    2008Cash flows from operating activities:Net loss
    
    $
    (12,896,678
    )
    
    $
    (9,612,206
    )Adjustments to reconcile net loss to net cash
used in operating activities:In-process research and development
    
    
    
    
    
    
    (129,251
    )Depreciation and amortization
    
    
    635,547
    
    
    
    737,491Share-based compensation
    
    
    413,123
    
    
    
    1,252,338Gain on sale of equipment
    
    
    (39,890
    )
    
    
    (24,439
    )Amortization of investment premium or discount
    
    
    16,811
    
    
    
    (555,607
    )Changes in operating assets and liabilities:Prepaid expenses and other assets
    
    
    (418,538
    )
    
    
    343,777Accounts receivable
    
    
    29,115
    
    
    
    (147,671
    )Accounts payable and other liabilities
    
    
    57,442
    
    
    
    27,690Accrued expenses
    
    
    617,740
    
    
    
    (4,678,317
    )Deferred revenue
    
    
    (112,500
    )
    
    
    12,500Net cash used in operating activities
    
    
    (11,697,828
    )
    
    
    (12,773,695
    )Cash flows from investing activities:Purchases of property and equipment
    
    
    (4,981
    )
    
    
    (464,281
    )Proceeds from sale of property and equipment
    
    
    39,890
    
    
    
    30,230Purchases of investments
    
    
    (15,277,699
    )
    
    
    (33,757,870
    )Proceeds from maturities and sales of investments
    
    
    23,890,000
    
    
    
    45,250,077Cash paid in connection with acquisition
    
    
    
    
    
    
    (151,748
    )Net cash provided by investing activities
    
    
    8,647,210
    
    
    
    10,906,408Cash flows from financing activities:Proceeds from capital lease financing
    
    
    
    
    
    
    368,121Payments on promissory notes and capital leases
    
    
    (284,105
    )
    
    
    (795,388
    )Repurchase of common stock
    
    
    (3,213
    )
    
    
    (130,583
    )Proceeds from the issuance of common stock
    
    
    8,248
    
    
    
    13,301Net cash used in financing activities
    
    
    (279,070
    )
    
    
    (544,549
    )Decrease in cash and cash equivalents
    
    
    (3,329,688
    )
    
    
    (2,411,836
    )Cash and cash equivalents at beginning of period
    
    
    11,507,137
    
    
    
    14,178,143Cash and cash equivalents at end of period
    
    $
    8,177,449
    
    
    $
    11,766,307Supplemental cash flow information:Interest paid
    
    $
    50,954
    
    
    $
    44,514
   5




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INHIBITEX, INC.
 
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 1. Operations
     2. Summary of Significant Accounting Policies
     Financial Services-Investment Companies
  6




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3. Net Loss Per Share
   Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Net loss available for common stockholders
    
    $
    (4,471,737
    )
    
    $
    (3,955,532
    )
    
    $
    (12,896,678
    )
    
    $
    (9,612,206
    )Weighted average common shares outstanding used to compute basic earnings per share
    
    
    43,545,057
    
    
    
    43,273,487
    
    
    
    43,499,678
    
    
    
    42,992,372Dilutive effect of:Stock options
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Warrants
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Shares used to compute diluted earnings per share
    
    
    43,545,057
    
    
    
    43,273,487
    
    
    
    43,499,678
    
    
    
    42,992,372Basic net loss per share
    
    $
    (0.10
    )
    
    $
    (0.09
    )
    
    $
    (0.30
    )
    
    $
    (0.22
    )Diluted loss per share
    
    $
    (0.10
    )
    
    $
    (0.09
    )
    
    $
    (0.30
    )
    
    $
    (0.22
    )Number of antidilutive stock options excluded from
computation
    
    
    4,631,736
    
    
    
    4,966,762
    
    
    
    4,631,736
    
    
    
    4,966,762Number of antidilutive warrants excluded from
computation
    
    
    8,000,597
    
    
    
    8,557,288
    
    
    
    8,000,597
    
    
    
    8,557,288
 4. Stockholders Equity
 Common Stock .
 Common Stock Warrants.
  7




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5. Share-Based Award Plans
  Stock Options
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Weighted average risk-free interest rate
    
    
    
    
    
    
    3.12
    %
    
    
    1.87
    %
    
    
    2.72
    %Dividend yield
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Expected weighted average volatility
    
    
    
    
    
    
    .67
    
    
    
    .69
    
    
    
    .68Expected weighted average
life of options (years)
    
    
    
    
    
    
    4.0
    
    
    
    4.0
    
    
    
    4.0Weighted average fair value of options granted
    
    
    
    
    
    $
    0.33
    
    
    $
    0.17
    
    
    $
    0.43
  Weighted Average
    
    
    Weighted-Average
    
    
    Aggregate IntrinsicNumber of
    
    
    Exercise Price
    
    
    Remaining Contractual
    
    
    ValueStock Options
    
    
    Per Option
    
    
    Term
    
    
    ($000)Balance at December 31, 2008
    
    
    4,820,459
    
    
    $
    2.33Granted
    
    
    70,500
    
    
    
    0.32Exercised
    
    
    
    
    
    
    Forfeited or expired
    
    
    (259,223
    )
    
    
    3.28Balance at September 30, 2009
    
    
    4,631,736
    
    
    $
    2.25
    
    
    
    5.5
    
    
    $
    132
  6. Comprehensive Loss
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Net loss
    
    $
    (4,471,737
    )
    
    $
    (3,955,532
    )
    
    $
    (12,896,678
    )
    
    $
    (9,612,206
    )Change in net unrealized losses on investments
    
    $
    (14,422
    )
    
    $
    (40,129
    )
    
    $
    (103,862
    )
    
    $
    (140,257
    )Comprehensive loss
    
    $
    (4,486,159
    )
    
    $
    (3,995,661
    )
    
    $
    (13,000,540
    )
    
    $
    (9,752,463
    )
  8




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7. Fair Value Measurements
 Fair Value Measurements and Disclosures
 Level 1
    
    Quoted prices in active markets for identical assets or liabilities.Level 2
    
    Observable inputs other than Level 1 prices, such as quoted prices
for similar assets or liabilities; quoted prices in markets that
are not active; or other inputs that are observable or can be
corroborated by observable market data for substantially the full
term of the assets or liabilities.Level 3
    
    Unobservable inputs that are supported by little or no market
activity and that are significant to the fair value of the assets
or liabilities.
 Fair Value Measurements and Disclosures
 Quoted prices inactive markets for
    
    
    Significant other
    
    
    Significantidentical assets
    
    
    observable inputs
    
    
    unobservable inputsSeptember 30, 2009
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Cash equivalents
    
    $
    7,066,198
    
    
    $
    5,559,485
    
    
    $
    1,506,713
    
    
    $
    Short-term investments available-for-sale
    
    
    12,901,906
    
    
    
    251,865
    
    
    
    12,650,041
    
    
    
    Total
    
    $
    19,968,104
    
    
    $
    5,811,350
    
    
    $
    14,156,754
    
    
    $
    
    Unrealized
    
    
    UnrealizedSeptember 30, 2009
    
    At Cost
    
    
    Gains
    
    
    (Losses)
    
    
    At Fair ValueCertificates of deposit and money market
funds
    
    $
    5,559,485
    
    
    $
    
    
    
    $
    
    
    
    $
    5,559,485Debt securities of U.S. government agencies
    
    
    14,149,456
    
    
    
    10,010
    
    
    
    (2,712
    )
    
    
    14,156,754US Treasury securities
    
    
    251,575
    
    
    
    290
    
    
    
    
    
    
    
    251,865Total
    
    $
    19,960,516
    
    
    $
    10,300
    
    
    $
    (2,712
    )
    
    $
    19,968,104
 Unrealized
    
    
    UnrealizedDecember 31, 2008
    
    At Cost
    
    
    Gains
    
    
    (Losses)
    
    
    At Fair ValueCertificates of deposit and money market
funds
    
    $
    11,603,992
    
    
    $
    
    
    
    $
    (386
    )
    
    $
    11,603,606Commercial paper
    
    
    845,999
    
    
    
    1,551
    
    
    
    
    
    
    
    847,550Corporate debt notes
    
    
    9,122,672
    
    
    
    30,488
    
    
    
    (8,117
    )
    
    
    9,145,043Debt securities of U.S. government agencies
    
    
    10,458,387
    
    
    
    88,584
    
    
    
    (791
    )
    
    
    10,546,180US Treasury securities
    
    
    754,641
    
    
    
    157
    
    
    
    (36
    )
    
    
    754,762Total
    
    $
    32,785,691
    
    
    $
    120,780
    
    
    $
    (9,330
    )
    
    $
    32,897,141
  9




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8. Notes Payable
 Notes Payable.
  Year Ending December 31,2009
    
    $
    2010
    
    
    78,1252011
    
    
    243,0562012
    
    
    243,0562013
    
    
    60,763Total future payments
    
    $
    625,000
 9. Subsequent Event
   10




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ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 This Quarterly Report on Form 10-Q contains forward-looking statements. These forward-looking
statements involve known and unknown risks, uncertainties and other factors that may cause actual
results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking statements. In some cases,
you can identify forward-looking statements by terms such as may, will, should, could,
would, expect, plan, intend, anticipate, believe, estimate, project, predict,
forecast, potential, likely or possible, as well as the negative of such expressions, and
similar expressions intended to identify forward-looking statements. These forward-looking
statements include, without limitation, statements relating to:
 
    
    The anticipated completion of the FV-100 Phase II trial in shingles patients around the middle of next year;
    
    our plans and timing to file an investigational new drug application for INX-189 and initiate clinical trials in
the first half of 2010;
    
    the number of months that our current cash, cash equivalents and short-term investments will allow us to operate;
    
    our future financing requirements, the factors that may influence the timing and amount of these requirements,
and our ability to fund them;
    
    potential future revenue from collaborative research agreements, partnerships, license agreements, product
related revenue or materials transfer agreements;
    
    our product candidates may have the potential to address a number of current therapeutic limitations, such as
inadequate potency, diminishing efficacy due to the emergence of drug-resistant viruses, toxic or adverse side
effects, complex dosing schedules, and inconvenient routes of administration and other unmet needs in their
intended indications; and
    
    anticipated future and increased net losses from operations.
 These statements reflect our current views with respect to future events and are based on
assumptions and subject to risks and uncertainties including, without limitation: not obtaining
regulatory approval on a timely basis, or at all, to advance the development of an HCV clinical
candidate into clinical trials; either we, the FDA, or an investigational review board suspending
or terminating the clinical development of FV-100 for lack of safety, manufacturing issues or other
clinical reasons; FV-100 not demonstrating sufficient efficacy in reducing the incidence and
severity of shingles-related symptoms, including acute pain and PHN, to be clinically relevant or
commercially viable; the results of ongoing or future preclinical studies of INX-189 not supporting
its further development; Wyeth not terminating our license and collaborative research agreements;
our maintaining sufficient resources, including executive management and key employees; our ability
to successfully develop current and future product candidates either in collaboration with a
partner or independently and through the regulatory process; our ongoing or future preclinical
studies or clinical trials not demonstrating an appropriate safety and/or efficacy profile of our
product candidates; our ability to secure and use third-party clinical and preclinical research
and data management organizations and manufacturers not fulfilling their contractual obligations or
otherwise performing satisfactorily in the future; manufacturing and maintaining sufficient
quantities of preclinical and clinical trial material on hand to complete our preclinical studies
or clinical trials on a timely basis; failure to obtain regulatory approval to market our product
candidates; our ability to protect and maintain our proprietary intellectual property rights from
unauthorized use by others or not infringing on the intellectual property rights of others; our
collaborators failing to fulfill their obligations under our agreements with them in the future;
our ability to attract suitable organizations to collaborate on the development and
commercialization of our product candidates; the condition of the financial equity and debt markets
and our ability to raise sufficient funding in such markets; our ability to manage our current cash
reserves as planned; changes in general economic business or competitive conditions; and other
statements contained elsewhere in this Quarterly Report on Form 10-Q (including
the Risk Factors section herein) and risk factors described in or referred to in greater detail
in the Risk Factors section of our Form 10-K for the year ended December 31, 2008 and in the
Risk Factors section of our Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009.
There may be events in the future that we are unable to predict accurately, or over which we have
no control. You should read this Form 10-Q and the documents that we reference herein and which
been filed or incorporated by reference as exhibits completely and with the understanding that our
actual future results may be materially different from what we expect. Our business, financial
condition, results of operations, and prospects may change. We may not update these forward-looking
statements, even though our situation may change in the future, unless we have obligations under
the federal securities laws to update and disclose material developments related to previously
disclosed information. We qualify all of the information presented in this Form 10-Q , and
particularly our forward-looking statements, by these cautionary statements.
  11




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Inhibitex ® MSCRAMM ® and Aurexis ® are
registered trademarks of Inhibitex, Inc. MSCRAMM is an acronym for Microbial Surface Components
Recognizing Adhesive Matrix Molecules
 The following discussion should be read in conjunction with the financial statements and the notes
thereto included in Item 1 of this Quarterly Report on Form 10-Q.
 Overview
     Recent Developments
 FV-100-
 INX -189 in vitro in vivo
 NASDAQ Listing Transfer 
 Private Placement Financing 
 Presentation at AASLD Meeting th
  12




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Critical Accounting Policies
   
    
    Revenue Recognition
    
    Accrued Expenses
   Financial Services-Investment
Companies
  Results of Operations
 Three Months Ended September 30, 2009 and 2008
 Summary.
 Revenue.
  13




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Research and Development Expense.
 September 30,2009
    
    
    2008(In millions)Direct clinical, preclinical and manufacturing-related expenses
    
    $
    2.0
    
    
    $
    1.5Salaries, benefits and share-based compensation expense
    
    
    1.0
    
    
    
    0.9License fees, patent-related legal fees and other expense
    
    
    0.4
    
    
    
    0.5Depreciation and facility related expenses
    
    
    0.5
    
    
    
    0.6Total research and development expense
    
    $
    3.9
    
    
    $
    3.5
  General and Administrative Expense.
 September 30,2009
    
    
    2008(In millions)Salaries, benefits and share-based compensation expense
    
    $
    0.4
    
    
    $
    0.6Professional and legal fees
    
    
    0.2
    
    
    
    0.2Other expenses
    
    
    0.2
    
    
    
    0.3Depreciation and facility related expenses
    
    
    
    
    
    
    0.4Total general and administrative expense
    
    $
    0.8
    
    
    $
    1.5
  Nine Months Ended September 30, 2009 and 2008
 Summary.
 Revenue.
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Research and Development Expense.
 September 30,2009
    
    
    2008(In millions)Direct clinical, preclinical and manufacturing-related expenses
    
    $
    5.0
    
    
    $
    2.4Salaries, benefits and share-based compensation expense
    
    
    3.0
    
    
    
    3.1License fees, patent-related legal fees and other expenses
    
    
    1.7
    
    
    
    1.8Depreciation and facility related expenses
    
    
    1.4
    
    
    
    1.7Total research and development expense
    
    $
    11.1
    
    
    $
    9.0
  General and Administrative Expense.
 September 30,2009
    
    
    2008(In millions)Salaries, benefits and share-based compensation expense
    
    $
    1.2
    
    
    $
    1.8Professional and legal fees
    
    
    0.8
    
    
    
    0.9Other expenses
    
    
    0.7
    
    
    
    0.9Depreciation and facility-related expenses
    
    
    0.1
    
    
    
    0.5Total general and administrative expense
    
    $
    2.8
    
    
    $
    4.1
  Liquidity and Capital Resources
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
    
    our development plans for our product candidates, including any changes in our strategy;
    
    the variability, timing and costs associated with conducting clinical trials, the rate of enrollment in
such clinical trials and the results of these clinical trials;
    
    the variability, timing and costs associated with conducting preclinical studies;
    
    the cost of manufacturing preclinical and clinical trial materials for our product candidates;
    
    the cost to obtain and the timing of regulatory approvals required to advance the development of our
product candidates;
    
    the terms and timing of any collaborative, licensing and other arrangements that we may establish;
    
    future payments we may receive or make under existing or future license or collaboration agreements, if any;
    
    the cost to maintain a corporate infrastructure to support being a publicly-traded company; and
    
    the cost of filing, prosecuting, and enforcing patent and other intellectual property claims.
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ITEM 4T.
    
    CONTROLS AND PROCEDURES
 Disclosure Controls and Procedures
  Changes in Internal Control over Financial Reporting
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PART II
OTHER INFORMATION
 
 ITEM 1A.
    
    RISK FACTORS
 You should carefully consider the following discussion of risks, together with the other
information contained in this Form 10-Q. The occurrence of any of the following risks could
materially harm our business, our ability to continue to operate our business, our financial
condition, or our ability to raise additional capital in the future, or ever become profitable. In
that event, the market price of our common stock could decline and you could lose part or all of
your investment. The Risk Factors included in the Companys Annual Report on Form 10-K for the year
ended December 31, 2008 and the Companys Quarterly Reports on Form 10-Q for the periods ended
March 31, 2009 and June 30, 2009 have not materially changed, except as set forth below.
 Risks Relating to our Development of our Product Candidates
 All of our product candidates are in the early stages of development and their commercial viability
remains subject to future preclinical studies, clinical trials, regulatory approvals and the risks
generally inherent in these activities. If we are unable to successfully advance or develop our
product candidates, our business will be materially harmed.
   
    
    offer therapeutic or other benefits over existing comparable drugs or other
drug candidates in development;
    
    be proven to be safe and effective in clinical trials;
    
    have the desired effects (or may include undesirable or unexpected effects);
    
    meet applicable regulatory standards;
    
    be capable of being produced in commercial quantities at acceptable costs; or
    
    be successfully commercialized by us or by collaborators.
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In order to develop our product candidates and support our operations beyond the next 24 months
from the date of this filing, we expect that we will need to raise additional capital. Such capital
may not be available to us on acceptable terms, if at all, which could materially harm our business
and business prospects, and the price of our common stock could suffer a decline in value.
   
    
    our development plans for our product candidates, including any changes in our strategy;
    
    the variability, timing and costs associated with conducting clinical trials, the rate of enrollment in
such clinical trials and the results of these clinical trials;
    
    the variability, timing and costs associated with conducting preclinical studies;
    
    the cost of manufacturing preclinical and clinical trial materials for our product candidates;
    
    the cost to obtain and the timing of regulatory approvals required to advance the development of our
product candidates;
    
    the terms and timing of any collaborative, licensing and other arrangements that we may establish;
    
    future payments we may receive or make under existing or future license or collaboration agreements, if any;
    
    the cost to maintain a corporate infrastructure to support being a publicly-traded company; and
    
    the cost of filing, prosecuting, and enforcing patent and other intellectual property claims.
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ITEM 6.
    
    EXHIBITS
  Exhibit No.
    
    Description10.55
    
    
    Second Amendment to Loan Agreement, dated August 3, 2009, by and between the Development
Authority of Fulton County and Inhibitex, Inc.31.1
    
    
    Section 302 Certification of the Chief Executive Officer and Chief Financial Officer
Required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as
Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 200232.1
    
    
    Section 906 Certifications of the Chief Executive Officer and the Chief Financial Officer
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SIGNATURES
  Date: November 13, 2009
    
    INHIBITEX, INC/s/ Russell H. PlumbRussell H. PlumbPresident, Chief Executive Officer,Chief Financial Officer and Chief Accounting
Officer
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EXHIBIT INDEX
 Exhibit No.
    
    Description10.55
    
    
    Second Amendment to Loan Agreement, dated August 3, 2009, by and between the Development
Authority of Fulton County and Inhibitex, Inc.31.1
    
    
    Section 302 Certification of the Chief Executive Officer and Chief Financial Officer as
Required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as
Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 200232.1
    
    
    Section 906 Certifications of the Chief Executive Officer and the Chief Financial Officer
  22