On the last day of June 2006, small Swedish drug development company Medivir announced two new deals with Ireland-based Johnson & Johnson subsidiary Tibotec Pharmaceuticals and the extension of a 2004 agreement with the same partner. The deals are significant indicators of Medivir's desire to become a sustainable and profitable research-based pharmaceutical company, and if all goes according to plan, should mark the start of a series of agreements with as yet unknown partners. With the planned divestment of nearly half of its current development pipeline, Medivir's business model aspirations could be considered as risky. In this feature, we explore the company's new strategy, the approach that it has chosen to take, and the likelihood of success of its products.