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 20,656.58 -4.72 -0.02%
Nasdaq 5,817.69 -3.95 -0.07%
S&P 500 2,345.96 -2.49 -0.11%
Treasuries 2.42 0.02 0.92%
Data as of 4:34pm ET
Company Price Change % Change
Bank of America Corp... 23.07 0.13 0.57%
Ford Motor Co 11.67 -0.10 -0.85%
Advanced Micro Devic... 13.79 -0.31 -2.20%
Chesapeake Energy Co... 5.09 0.09 1.80%
Micron Technology In... 26.47 0.41 1.57%
Data as of 4:15pm ET
Sponsors

Sections

Juniors and seniors at Howard University can study computer science at Google's Mountain View campus this summer. More

The poorest Americans would be hit hard by the GOP bill to repeal Obamacare, according to a new Urban Institute report. More

The Federal Communications Commission voted Thursday to approve a proposed rule that would make it easier for phone companies to crack down on robocalls. More

Your credit score plays a major role in your personal finances. The better the score, the better it is for your wallet. Here's how to help get it above the 800 mark. More