Gilead Sciences to acquire hepatitis C drug developer Pharmasset for $11 bn

US-based biopharmaceutical company Gilead Sciences Inc today said it had entered into a deal to acquire Pharmasset Inc for about $11 billion in cash, aimed at diversifying its portfolio to experimental treatments for the hepatitis C virus.

Under the deal that was unanimously approved by Pharmasset's board, Gilead will pay $137 per share in cash, a premium of 89 per cent to Pharmasset's Friday closing price.

Gilead said it will pay for the deal with cash on hand, bank debt and senior unsecured notes. It expects the acquisition to close in next year's first quarter.

Foster City, California-bas Gilead, the world's largest maker of HIV drugs, said that the transaction will help advance its effort to develop an all-oral regimen for the treatment of HCV.

Gilead's research and development portfolio includes seven unique molecules in various stages of clinical development for the treatment of HCV and Pharmasset's compounds are complementary to Gilead's existing HCV portfolio.

Princeton, New Jersey-based Pharmasset does not currently have any products in the market. It is a clinical-stage discoverer and developer of novel drugs to treat viral infections. Its primary focus is the development of oral therapeutics for the treatment of hepatitis C virus (HCV).