Gilead Sciences announces Pharmasset acquisition deal

Gilead Sciences has announced a major new acquisition deal that will see it take ownership of fellow healthcare company Pharmasset for $11 billion (7.06 billion pounds).

The transaction has been approved by Pharmasset's board of directors and will be financed using cash on hand, bank debt and senior unsecured notes, with finalisation of the deal expected in the first quarter of 2012.

Pharmasset specialises in the creation of new treatments for hepatitis C virus (HCV) and currently has three clinical-stage product candidates in development for various patient populations.

The company's lead product candidate PSI-7977 is an unpartnered uracil nucleotide analog that is currently undergoing phase III trials among patients with HCV genotype 2 and 3.

Dr John Martin, chairman and chief executive officer of Gilead, said: "We look forward to working closely with the Pharmasset team to advance a broad clinical program in HCV to address the unmet needs of patients and the medical community."

Last week, the company announced a new agreement with Tibotec Pharmaceuticals pertaining to the development of a new combination therapy for HIV.