We report structure-activity relation studies on 3'-azido-3'-deoxythymidine (AZT) and the implications to the biological activity of this class of compounds. The adiabatic potential surface (APS) of the title compound has been examined with the LCAO-MO-SCF method within the A M I approximation. This study has shown at least 13 minima, all separated by small energy differences and barriers. We have found that the equilibrium favors the antigg conformations, in variance to previous studies that predicted the syn,gg conformers to be the most stable forms. The most stable conformation (A) is favored by about 0.5 kcal/mol. However, calculations simulating a bulk-water environment suggest that the three lowest energy conformations (A, B, and C) become almost degenerate in solution. We suggest that the crystallographic conformation (L), characterized by a high dipole moment, and analogous to C, undergoes a strong stabilization upon rotation of the 3 '-azido group and that these two conformers, C and L, are the only ones in which the hydroxyl proton is free of steric hindrance. This last point has some relevance from the biological point of view since it is generally accepted that this site must be phosphorylated in order for AZT to achieve its therapeutic effects. The above results suggest that, once in solution, conformer L isomerizes to C, which is the bioactive form of AZT. 8 1992 John Wiley & Sons, Inc.