InterMune drops 78 % after FDA fails to clear lung drug

Discussion in 'Stocks' started by ASusilovic, May 4, 2010.

  1. ITMN shares plummeted after the biotech said late Tuesday the Food and Drug Administration needs more data to approve its lung treatment. In March, an advisory panel to the FDA recommended in a 9 to 3 vote that the agency approve Esbriet, a treatment for idiopathic pulmonary fibrosis, an ultimately fatal disease where inflamed lung tissue can no longer process oxygen. InterMune said it will meet as soon as possible with the FDA, which said it needs another clinical trial on the drug. InterMune shares plummeted 79% to $9.59 in after-hours activity.

  2. gimp570


    so is the next stop 12 or 8??

    i am hoping 8
  3. gimp570


    I think intermune inc might be worth zero...they have no way to make any money. They made a mistake not raising money when this stock was in the 40's. Sure there is upside risk but this process with the FDA could take 2 or 3 years...

    in the mean time once everything calms down and everyone forgets about it. i think it will just slowly keep creaping lower and lower...

    but there is sure to be huge swings in the short term
  4. So true. I would have tripped over myself putting together an enormous secondary offering.

    Anyone have puts on this?? Even with the huge IV priced in, the near term $30 strike puts were still something like a 4 bagger.
  5. gimp570


    another thing is that they are going to have to raise some money....

    not sure how they are going to do this....

    seems like it might have been an easier thing to to yesterday!
  6. piezoe


    If the drug is reasonably promising, Big Pharma, that knows the technical aspects and can properly evaluate the prospects and the science, will be there with capital. Otherwise the company will die. This is a huge gamble for anyone with out inside knowledge. That's why I steer clear of this stuff. For gamblers out there, watch to see if capital is raised and the source. If it comes from Venture Capital or public offering, avoid. If it comes from Big Pharma, it may be worth a gamble.