Boston, MA 09/04/2014 (wallstreetpr) – InterMune Inc (NASDAQ:ITMN)’s Board of Directors may have to answer some questions about whether they acted in the best interest of the shareholders in selling the company to Roche. A notice of claims of breaches in fiduciary duty has been issued by The Law Offices of Vincent Wong. The notice follows the filing of a complaint in California state court.
According to the notice of a class-action against the Board of Directors of InterMune, questions are asked about whether the Board performed its fiduciary duty in agreeing to sell the company to Roche for $8.3 billion, which translates to $74 a share. There are claims that the Board failed in its mandate to seek the best value for the shareholders by shopping properly for a buyer. The claims also question whether Roche’s offer of $74 because it can be viewed as an underpayment for the shares of InterMune.
InterMune Inc (NASDAQ:ITMN) agreed to join forces with Roche after the latter offered to pay a per-share price that is a significant premium over the price of the shares before the acquisition matter was disclosed.
FDA decision in November
InterMune has one drug product known as Esbriet, which is approved in the European Union and Canada. Esbriet secured EU approval in 2011. However, the drug has not yet obtained the approval of the U.S. Food and Drug Administration. The U.S. regulator demanded additional Phase 3 trial of the treatment, which was submitted earlier this year in May, and a decision on the same is expected in November. However, the FDA issued a “breakthrough therapy” designation for the drug.
Esbriet is offered for the treatment of idiopathic pulmonary fibrosis (IPF), which is a condition where scar tissue accumulates in the lungs and make it difficult to absorb oxygen. People with the condition usually have a survival term of two to three years after they are diagnosed with the disease.
$1 billion sales potential
Analysts submit that InterMune Inc (NASDAQ:ITMN)’s Esbriet could top $1 billion in annual sales by the end of the decade. Perhaps the sales opportunity for the drug explains another reason Roche is interested in the business. Roche is already active in the respiratory field.
