Boston, MA 02/27/2014 (wallstreetpr) – Drug maker InterMune Inc. (NASDAQ:ITMN) enjoyed an influx of market activity on its stock after releasing positive trial news on its drug aimed at treating lung cancer. February 25, 2014 was the day that the company’s market valuation more than doubled at the back of the positive news on Pirfenidone. The news caused a market frenzy as analysts fluxed to buy the stock awaiting to see if the drug which is currently being used in Canada and Europe would get the approval by FDA.
InterMune Inc. (NASDAQ:ITMN) stock had soared by 132% to a high of $32.46 with the company management team confident that once they appeal the decision to bar the drug from being sold in the US this time around, they will be successful. The FDA had turned down an earlier application as they awaited further testing on the drug.
InterMune slumps
The rise in the market was short lived as in the next day of trading, the stock slumped by almost 15% coming at the back of good volumes with too many shares exchanging hands during normal trading session. This was a surprise considering the stock had been flat since the start of the month on February 3, 2014. There is no doubt the slump was disappointing although there are positive to take from it, as the company earnings consensus continues to remain flat. Many analysts are not worried maintaining the slump is only a temporary blip that should pass
InterMune price target raised to $41-$43
Wells Fargo have maintained an outperform rating on InterMune stock and consequently raised their price target to $41-$43 from earlier lows of $18-$20. The positive trial results on the lung cancer pill precipitated the sudden change of mind.
Wells Fargo & Company (NYSE:WFC) are of the opinion that InterMune is to receive the much needed boost by its new pill Pirfenidone being approved by the FDA. If this is to happen then the company is set to gain a good edge in the market. This will be beneficial as the company will get its European revenue stream. The approval will enable InterMune reach its target global sells of $1 billion.
InterMune Inc. (NASDAQ:ITMN) is set to capture a meaningful share of the worldwide IPF market in the coming days especially with the much awaited approval of Pirfenidone by US authorities
