Boston, MA, 02/27/2014 (usastockreport) – InterMune Inc. (NASDAQ:ITMN), the bio-pharma company shed some of its gains yesterday after rising steeply a day earlier, on account of successful trial results of ASCEND.
Phase 3 Results
InterMune Inc. (NASDAQ:ITMN)’s latest data is pretty rosy and surprising as the ASCEND trial involving drugpirfenidone had been outwrightly rejected by the FDA in 2010. But the same component now has delivered and met both primary as well as secondary endpoints in the phase 3 study. On Tuesday, the company noted the primary goal achievement of significant reduction in progression idiopathic pulmonary fibrosis (IPF), a fatal disease.Pirfenidone also achieved second goal of the trial in six-minute walk and successful survival rate in the patients. After the results, InterMune is expected to resubmit application to the FDA for its approval.
Positive As Per Analysts
InterMune Inc. (NASDAQ:ITMN)’s results followed a series of discussions from analysts over the future of the drug and the company. The team at Summer Street asserted that the FDA approval is obvious and they anticipate higher sales in the European Union. Oppenheimer boosted its price target to $42, up from $19. While analyst Brian Skorney from Baird even see a possibility of acquisition of InterMune by a pharma giant. He sees the stock to claim the $44 price position comfortably even without the acquisition as is comes past over the clinical risk and holds potential for a wide market and better pricing in the U.S.
Alongside the positive estimates by the analysts, there are others who keep it a bit low. Goldman Sachs analyst Terence Flynn raised the price target to $40 but and anticipates FDA approval in the second quarter of 2015. He has now tagged 100% for the approval probability and kept estimates of the peak market share at 50%. But, Jefferies’ analyst Eun Yang is not soupbeat for the sales growth as he keeps estimate at $650 million and $300 million for the U.S. and EU market.