It does sound as if the drive is shot. Replacement straightforward enough if you're comfortable taking a laptop to pieces, if not give it somebody who knows what they're doing to repair.
It may be, if you're lucky, that you'll only have to remove a cover to be able to access the drive, laptops differ in how they're built.
If you do decide to get it repaired get several quotes for the job first, prices can vary a great deal.