Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

InterMune stock plunges 80% as FDA rejects lung drug

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- Shares of InterMune Inc. plunged nearly 80% after-hours Tuesday following the Food and Drug Administration's rejection of the biotech company's application for Esbriet, a drug designed to treat a fatal lung disease.

The company said the FDA has requested an additional clinical trial to support the effectiveness of Esbriet in patients suffering from idiopathic pulmonary fibrosis, which hinders the body's ability to process oxygen due to inflammation and scarring in the lungs.

"We will meet with the FDA as soon as possible to understand their points of view and to determine the most appropriate path forward to expeditiously make Esbriet available to the approximately 100,000 patients with IPF and their families who suffer from this terrible disease and for whom no FDA-approved medicines exist," InterMune (ITMN) chairman and chief executive Dan Welch said in a prepared statement.

Welch said he was "disappointed" by the outcome, since the FDA's advisory committee recommended the approval of the drug by a 9-3 margin in March.  To top of page

Search for Jobs

Index Last Change % Change
Dow 20,989.00 13.91 0.07%
Nasdaq 6,047.14 21.91 0.36%
S&P 500 2,389.52 2.07 0.09%
Treasuries 2.30 -0.02 -0.69%
Data as of 3:00pm ET
Company Price Change % Change
Bank of America Corp... 23.72 -0.17 -0.71%
Chesapeake Energy Co... 5.25 -0.22 -4.02%
Ford Motor Co 11.44 -0.16 -1.38%
PayPal Holdings Inc 47.46 3.05 6.87%
Advanced Micro Devic... 13.59 0.18 1.34%
Data as of 2:45pm ET
Sponsors

Sections

Mark King, the president of Adidas North America, talks about how companies should deal with the current political climate and what statements they should make. More

President Trump wants large tax cuts for everyone. History shows that isn't a great recipe to boost the economy. CNNMoney breaks it down. More

Paytm, the country's top digital payments platform, will now allow users to purchase "digital gold" through its mobile app. More