3SOF

Profile: Pharmasset, Inc., a clinical-stage pharmaceutical company, focuses on discovering, developing, and commercializing drugs to treat viral infections. Its primary focus is on the development of oral therapeutics for the treatment of hepatitis B virus (HBV), hepatitis C virus (HCV), and human immunodeficiency virus (HIV). The company has three product candidates under development, which include Clevudine, an oral, once-daily pyrimidine nucleoside analog, which is under Phase III clinical trials for the treatment of chronic HBV infection; R7128, a pro-drug of PSI-6130 in Part 3 of a Phase I clinical trial for the treatment of HCV, through a collaboration with F. Hoffmann-LaRoche, Ltd. and Hoffmann-La Roche, Inc.; and Racivir, an oral, once-daily cytidine nucleoside analog, which has completed a Phase II clinical trial for the treatment of HIV. In addition, the company engages in the development of DFC, an oral, once-daily deoxycytidine nucleoside analog, for the treatment of HIV. Pharmasset, Inc. was founded in 1998 and is headquartered in Princeton, New Jersey.
Market Cap: $441.43 M
Website: http://www.pharmasset.com/

Trading Idea:

(Will be posted later today)

Trading Plan:
Buy VRUS today at the open.

Update:

VRUS is trading a long term bullish layout, during the past 6 months VRUS was unable to cross the $20 resistance, but recently it broke out with volume. Although its slightly below $20 again, I expect support near $18.50, and I'm considering the recent downside action as a consolidation.

From a Fundamental point of view, VRUS is not generating profits yet, and wont be for the next few years, although it has some interesting prospects and could be target of speculation. Canaccord Research Department issued this recent note of research with a $34 price target:

QuoteQ3/08: PHASE 2B AND NEW COMBO
THERAPY STUDIES TO START SOON

Pharmasset announced Q3/08 financial results. EPS of $(0.69) missed
our estimate and consensus of $(0.61).
New 1000mg dose R7128 data shows 88% RVR. A Phase 1b combo
therapy 1000mg cohort showed an 88% rate of undetectable virus with
four weeks of drug (RVR, or rapid viral response). 1500mg cohort data
showed 85% RVR, indicating that maximum effect can be reached with
1000mg. R7128 is Pharmasset’s Phase 1b hepatitis C (HCV) polymerase
inhibitor partnered with Roche. RVR is a key predictor of chance of HCV
cure. R7128 clinical safety data continues to be very clean. Pharmasset
said the 1000mg dose and one lower dose will be taken forward into
Phase 2b trials (due to start in Q4/08). Pharmasset also started 1500mg
high dose in genotype 2/3 treatment-experienced patients. Data from
this cohort is due shortly (we expect it will show strong antiviral effect).
Studies of R7128 with other oral small molecules could start later this
year. Experts think that new direct oral HCV drugs of different classes
(like R7128 and protease inhibitors such as Vertex’s telaprevir) could
have additive or synergistic antiviral combo therapy effect, similar to the
gold standard combo therapy approach in HIV, another rapidly mutating
virus. Vertex intends to start clinical investigation of Phase 3 telaprevir
together with other HCV oral drug classes, and we think that R7128 may
be one of the first agents investigated. We also note that Roche has a
portfolio of oral direct antivirals including a number of polymerase
inhibitors and a protease inhibitor. We suspect that Roche will also start
combination therapy studies soon.

We see R7128 is the best-in-class HCV polymerase inhibitor. R7128 is
partnered with HCV powerhouse Roche. We think a Phase 2b trial start
in Q4/08 would be a catalyst for VRUS shares as it would remove any
overhang from safety concerns. We also note pivotal data for Phase 3
hepatitis B drug clevudine is due in H2/09. Our price target of $34 is
based on a probability-weighted NPV analysis.

Trading Plan:
Hold VRUS with a stop @ $17.60

Update:

Not much price action for VRUS in the last few days, the stock reacted near the support area and bounced back above $20, volume has been neutral.

Today a new research note was published, again with interesting estimates:



Trading Plan:
Hold VRUS with a stop @ $17.60

 a few technical indicators are showing positive signs 

Update:
VRUS tested the first ascending support one more time during Friday's intraday selloff, nothing changed yet from a TA point of view.

Trading Plan:
Hold VRUS with a stop @ $17.60

VRUS: Positive Preliminary Results from Ph 1 Trial of R7128 for Hepatitis C
Monday , September 08, 2008 08:21ET


Pharmasset, Inc. (VRUS) announced the preliminary results of the fourth cohort of a 4-week Phase 1 proof-of-concept clinical trial evaluating R7128 1500mg twice daily (BID) in combination with the standard of care (SOC), Pegasys(R) (pegylated interferon) plus Copegus(R) (ribavirin) in 20 patients chronically infected with hepatitis C virus (HCV) genotype 2 or 3 who had not achieved a Sustained Viral Response (SVR) with prior SOC therapy. R7128, a prodrug of PSI-6130, is a nucleoside analogue polymerase inhibitor of HCV that is being developed through Pharmasset's collaboration with Roche.

In this study, preliminary results indicated that R7128 demonstrated significant short-term antiviral activity in patients who were previous non-responders or relapsers to treatment and was generally safe and well tolerated.

nice chart action 

Update:
VRUS is still trading inside the same short term range despite the recent market plunge. This action is quite bullish in terms of relative strenght, but with the current market environment we must upgrade our stop, in this case, a few ticks below the $19 relative low, so the new trading plan is:

Trading Plan:
Hold VRUS with a stop @ $18.90

holding well during today massacre 

VRUS stopped @ 18.90

Rams, any update from your side?
thx 4 ur update

cheers
Oliver


VRUS: Lazard Capital Starts @ Buy; Sets Tgt @ $27; Analyst Notes
Tuesday , October 21, 2008 12:31ET
Issuer: Pharmasset Inc (NasdaqNM: VRUS)
Analyst Firm:  Lazard Capital
Ratings Action: INITIATE
Current Rating: Buy
Target Price Action: INITIATE
Target Price: $27.00
Analyst Comments: Lazard believes the company's R7128 is the most promising nucleoside polymerase inhibitor in clinical development for HCV.