In a ratings report, Michael Levesque of Moody's Investors Services said Pharmasset and its lead product in development will provide “long-term opportunities for Gilead and further supports the rating affirmation.”
Pharmasset, which is based in Princeton, N.J., has three product candidates for the treatment of chronic hepatitis C virus in development, according to a Gilead news release. While Gilead’s primary focus is drugs that treat HIV/AIDS, liver disease and cardiovascular and metabolic and respiratory conditions, the company has seven products for hepatitis C in its pipeline.
“The compound, together with Pharmasset’s other pipeline candidates, represents a strong strategic fit with Gilead's vision, pipeline and capabilities,” said Gilead Chairman and CEO John Martin in the news release. “This transaction will serve to drive the long-term growth of our business.”
Gilead said it will finance the deal with cash on hand, bank debt and senior unsecured notes. The acquisition is expected to close in the first quarter of 2012.