Brean Murray Downgrades Pharmasset to "Hold"

Following news of a Gilead Sciences (Nasdaq: GILD) buying the company for $11 billion, Pharmasset (Nasdaq: VRUS) has been downgraded to “hold” from “buy”with a $105 price target by Brean Murray. Gilead's takeover offer was announced on Monday.

In a research note, analyst Brian Skorney said that given the rich premium Gilead is paying for Pharmasset, it is unlikely another suitor comes to the table, hence the downgrade. “Given the terms of the deal and the current stock price, we see no reason to buy the stock here and are downgrading to hold,” Skorney said.

Skorney expects the deal to close in the first quarter of 2012. Brean Murray initiated coverage of Pharmasset in June when the stock was just over $51.