I do believe they will settle with Gilead. Notice others such as MRK are piling on to the bandwagon in the patent suit. That is probably driving the stock short term as Gilead is ramping up to sell its Pharmasset- maybe IDIX derived drug.
The other main reason is that there are significant barriers to resistance that nucs confer. This month's Hepatology details several orals with significant viral breakthrough. Nucs are needed.
IDIX has the technology and the IP needed going forward.
Biotech is a #$%$, and this issue may be the ultimate #$%$. This could be a 50 dollar stock in 3 years.