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

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,172.68 -107.06 -0.62%
Nasdaq 4,527.69 -52.10 -1.14%
S&P 500 1,994.29 -16.11 -0.80%
Treasuries 2.55 -0.01 -0.58%
Data as of 9:12am ET
Company Price Change % Change
Oracle Corp 39.58 -0.22 -0.55%
Twenty-First Century... 34.52 -0.63 -1.79%
Wells Fargo & Co 52.90 -0.46 -0.86%
Sigma-Aldrich Corp 136.40 34.03 33.24%
The Coca-Cola Co 42.22 0.17 0.40%
Data as of Sep 22

Sections

Shares in drugs companies take a beating after the U.S. made it harder for American firms to slash their tax bills by buying foreign rivals. More

There's plenty of data out there, but keep an eye on housing, manufacturing and people's spending. More

Google chairman Eric Schmidt says company is dropping out of ALEC, a conservative political group, because it is lying on climate change. More

A growing number of banks, including Citi and Bank of America, are launching accounts without paper checks. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.