DOW JONES NEWSWIRES
Pharmasset Inc. (VRUS) plans to amend the design of a trial of
one of its drug candidates to treat hepatitis C amid the detection
of some abnormalities associated with liver function, though the
drug developer said the setback won't derail its pending
acquisition by Gilead Sciences Inc. (GILD).
Pharmasset says the announcement doesn't trigger a "key product
event" under the deal, which is valued at nearly $11 billion. A
study of 235 individuals receiving Pharmasset's PSI-938 trial alone
or in combination with other treatments will be amended, while
patients in trials of its PSI-7977 treatment will continue without
changes.
The company said the laboratory abnormalities haven't been
observed in patients receiving PSI-7977 and ribavirin.
Last month, Gilead--known for its blockbuster treatments for
HIV, the AIDS virus--made a big bet on the market for new
treatments for hepatitis C infections with the deal for Pharmasset,
a firm with about 80 employees and no products on the market.
Gilead's offer of $137 a share represented a huge premium to
Pharmasset's stock price at the time and underscored the fierce
competition among drug makers to advance new treatments for
hepatitis C, a market that is expected to see big growth in coming
years.
Gilead shares were down 1.6% at $37.89 in recent premarket
trading, while Pharmasset was down 3.8% to $122.96 after being
halted earlier Friday. Pharmasset shares have nearly sextupled this
year amid a series of positive developments for its drug candidates
and Gilead's takeover bid.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com