Boston, MA 08/29/2014 (wallstreetpr) – Roche Holdings proposed $8 billion takeover of pharmaceutical giant InterMune Inc. (NASDAQ:ITMN) is centered’ around blockbuster pill, Pirfenidone. Reuter’s reports that Roche believes the drug can prove its investments right, in terms of sales.
$2 Billion Worth of Sales
Analysts remain bullish on the drug generating annual sales of up to $2 billion. The drug was developed’ for the treatment of a rare form of lung cancer that is known to kill in a matter of five years. The drug should act as a great addition to Roche expansive network of respiratory treatments once given approval by the FDA. Liver Fibrosis remains a multi-billion dollar industry of which companies with effective drugs in the space are poised to gain a great deal.
InterMune Inc. (NASDAQ:ITMN)’s Pirfenidone has already highlighted its potential generating $150 million in annual sales in Europe and Canada where it is currently being sold. The drug has also been awarded a Breakthrough Designation by the FDA, meaning it has the potential to act as a new therapy.
Pirfenidone Set for Approval
InterMune Inc. (NASDAQ:ITMN) expects to gain approval later in the year after successful trials showed that the drug had the ability to prolong lives on patients with the fibrosis lung disease.
InterMune has also stated that trials for its next generation Pirfenidone may seek to involve patients suffering from lung, liver and kidney Fibrosis. It is still unclear whether, upon the merger Roche will agree to the same. The company’s research chief, Scott Seiwer has already stated that newer formulations of pirfenidone may result in milder side effects.
Pirfenidone is also set to face a big test in the form of competition from a rival drug from Boehringer Ingelheim, which is reportedly close to gain approval from the FDA. Roche –InterMune Inc. (NASDAQ:ITMN) merger can also be seen’ in some quarters as a form of Inversion considering Roche is based in Switzerland. Completion of the merger will allow the smaller InterMune, to shift its headquarters to Switzerland in what has come to be known in the industry as an Inversion.
