UPDATE: Canaccord Downgrades Pharmasset to Hold, Ups PT to $137 on Announced Deal

Canaccord lowers rating on Pharmasset, Inc. VRUS on limited upside from Gilead's intended $137 price of acquisition, which serves as base for its new price target. According to Canaccord, “Announcement of GILD intent to acquire VRUS for $137/share in an all cash transaction (89% premium to pre-announcement close) validates our view of the potential for nuc prodrugs such as PSI-7977 as backbones of future interferon-free HCV treatment regimens. We see further reassurance of VRUS asset value from GILD management remarks indicating comfort with the 7977 patent estate, outlook for significant market share extending into the late 2020s, and buy-in from FDA on placebo-controlled (vs. active drug comparator) pivotal Phase III studies of 7977.” VRUS closed at $133.82 on Monday.