PSI-7977 
                Trial Adds New Regimens
              
              
                 
                  | SUMMARY The ELECTRON trial, testing the HCV polymerase inhibitor PSI-7977, 
                    has added new arms looking at regimens with shorter duration 
                    or no interferon for people with HCV genotypes 1, 2, and 3.
 | 
              
               Direct-acting 
                antiviral agents that interfere with various steps of the hepatitis 
                C virus (HCV) lifecycle will revolutionize treatment. Initially 
                these drugs will be used with standard therapy consisting of pegylated 
                interferon alfa (Pegasys or PegIntron) plus ribavirin. While 
                such regimens have higher cure rates and shorter durations, people 
                with hepatitis C eagerly await 
                combinations without interferon and its difficult side effects.
Direct-acting 
                antiviral agents that interfere with various steps of the hepatitis 
                C virus (HCV) lifecycle will revolutionize treatment. Initially 
                these drugs will be used with standard therapy consisting of pegylated 
                interferon alfa (Pegasys or PegIntron) plus ribavirin. While 
                such regimens have higher cure rates and shorter durations, people 
                with hepatitis C eagerly await 
                combinations without interferon and its difficult side effects.
                
                The experimental nucleotide HCV polymerase inhibitor PSI-7977 
                has demonstrated potent activity in early studies to date, suggesting 
                that it may be a good candidate for use in interferon-sparing 
                regimens. This might be especially true for people with easier-to-treat 
                HCV genotypes 2 or 3. Studies 
                presented at this year's European Association for the Study 
                of the Liver (EASL) meeting showed promising results for people 
                treated with PSI-7977 plus pegylated interferon/ribavirin or an 
                all-oral combo of PSI-7977 plus PSI-938.
              Below 
                is an edited excerpt from a Pharmasset press release describing 
                addition of new trial arms to the ongoing ELECTRON study looking 
                at PSI-7977 regimens with no interferon or shorter-duration interferon.
               
                Pharmasset Announces the Expansion of the
                ELECTRON Trial in Chronic Hepatitis C
              Princeton, 
                N.J. -- June 8, 2011 -- Pharmasset, Inc. (Nasdaq: VRUS) announced 
                today the addition of three treatment cohorts to the ELECTRON 
                trial of PSI-7977, a nucleotide analog polymerase inhibitor, for 
                the treatment of chronic hepatitis C (HCV). The rapid and consistent 
                antiviral effects and high barrier to resistance demonstrated 
                with PSI-7977 to date provide the rationale for additional exploratory 
                regimens in this setting. This amendment will add one arm exploring 
                12 weeks of PSI-7977 monotherapy (without peginterferon and ribavirin) 
                and two arms of interferon-sparing therapy: one for 8 weeks of 
                PSI-7977 plus peginterferon and ribavirin (Peg-IFN/RBV) in patients 
                with HCV genotype 2 (GT2) or 3 (GT3) and one for 12 weeks of PSI-7977 
                plus Peg-IFN/RBV in patients with HCV genotype 1 (GT1) prior null 
                responses. 
                
                "The combination data reported at EASL demonstrated that 
                SVRs were achievable with two oral DAAs in the absence of peginterferon 
                and ribavirin," stated Bill Symonds, PharmD, Pharmasset's 
                Senior Vice President of Clinical Pharmacology and Translational 
                Medicine, "We continue to explore the potential for removing 
                peginterferon and ribavirin from the HCV treatment regimen. Given 
                the encouraging data we are seeing in ELECTRON, we have decided 
                to expand the study to investigate PSI-7977 monotherapy, as well 
                as shorter treatment regimens based on the promising data we reported 
                at EASL from PROTON."
                
                Pharmasset anticipates reporting results from the first four arms 
                of the trial (n=40) during the second half of 2011. We have submitted 
                a number of abstracts to the 2011 American Association for the 
                Study of Liver Diseases (AASLD) meeting, including data from the 
                ELECTRON and PROTON trials.
                
                About the Trial
                
                The ELECTRON trial is an exploratory study of PSI-7977 for the 
                treatment of chronic HCV infection. Part 1 of the trial is evaluating 
                12-week regimens of PSI-7977 400 mg QD [once-daily] in combination 
                with ribavirin (RBV) only, and in separate arms with abbreviated 
                durations of Peg-IFN for 4, 8, or 12 weeks in treatment-naive 
                patients with HCV GT2 or GT3. The primary endpoint of the trial 
                is the safety and tolerability of PSI-7977 400 mg QD and RBV for 
                12 weeks, administered with or without Peg-IFN. On May 11, 2011, 
                Pharmasset announced the completed enrollment of Part 1 of ELECTRON 
                in patients with HCV GT 2 or GT 3:
              
                 
                  |  | PSI-7977 
                    400 mg with RBV for 12 weeks (no peginterferon); | 
                 
                  |  | PSI-7977 
                    400 mg with RBV for 12 weeks; Peg-IFN weeks 1-4 only; | 
                 
                  |  | PSI-7977 
                    400 mg with RBV for 12 weeks, Peg-IFN weeks 1-8 only; | 
                 
                  |  | PSI-7977 
                    400 mg with Peg-IFN and RBV for 12 weeks. | 
              
              In 
                Part 2 of ELECTRON, Pharmasset will enroll an additional 30 patients 
                into exploratory regimens of monotherapy and abbreviated durations 
                of total therapy. Following on the first four Cohorts of ELECTRON 
                a 5th cohort will be added to explore 7977 400 mg monotherapy 
                in treatment-naive patients with HCV GT2 or GT3:
              
                 
                  |  | PSI-7977 400 mg monotherapy for 12 weeks. | 
              
              With 
                the previously reported 100% SVR12 in naive GT2/3 subjects in 
                PROTON, a 6th and 7th cohort will be added to ELECTRON to explore 
                shorter treatment durations in both GT2/3 naive subjects and HCV 
                GT1 subjects who have documented null responses (less than 2 log(10) 
                IU/mL reduction in HCV RNA after 12 weeks of Peg-IFN/RBV):
              
                 
                  |  | PSI-7977 
                    400 mg with Peg-IFN/RBV for 8 weeks | 
                 
                  |  | PSI-7977 
                    400 mg QD with Peg-IFN/RBV for 12 weeks. | 
              
              About 
                Pharmasset
                
                 Pharmasset 
                is a clinical-stage pharmaceutical company committed to discovering, 
                developing, and commercializing novel drugs to treat viral infections. 
                Pharmasset's primary focus is the development of oral therapeutics 
                for the treatment of hepatitis C virus (HCV) infection. Our research 
                and development efforts are focused on nucleoside/tide analogs, 
                a class of compounds which act as alternative substrates for the 
                viral polymerase, thus inhibiting viral replication.
Pharmasset 
                is a clinical-stage pharmaceutical company committed to discovering, 
                developing, and commercializing novel drugs to treat viral infections. 
                Pharmasset's primary focus is the development of oral therapeutics 
                for the treatment of hepatitis C virus (HCV) infection. Our research 
                and development efforts are focused on nucleoside/tide analogs, 
                a class of compounds which act as alternative substrates for the 
                viral polymerase, thus inhibiting viral replication. 
                
                We currently have three clinical-stage product candidates advancing 
                in trials in various populations. Our pyrimidine, PSI-7977, an 
                unpartnered uracil nucleotide analog, is currently under study 
                in three Phase 2b trials in patients with HCV genotypes 1 through 
                6, including abbreviated duration interferon and interferon-free 
                regimens. Our purine, PSI-938, an unpartnered guanosine nucleotide 
                analog, recently reported safety and efficacy data from 14 days 
                of monotherapy as well as 14 days in combination with the pyrimidine, 
                PSI-7977. An SVR-endpoint study of the purine-pyrimidine combination 
                is anticipated to begin in the third quarter of 2011. Mericitabine 
                (RG7128) continues in two Phase 2b trials and one interferon-free 
                trial being conducted through a strategic collaboration with Roche.
                
                6/14/11
              Source
                Pharmasset, Inc. Pharmasset Announces the Expansion of the ELECTRON 
                Trial in Chronic Hepatitis C. Press release. June 8, 2011.