InterMune Shares Plunged: What You Need to Know

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What: Shares of InterMune (Nasdaq: ITMN  ) fell as much as 16% in early trading after admitting it would have to respond to a damning report issued by German health-care officials.

So what: IQWiG, roughly Germany's equivalent to the FDA here in the U.S., says that InterMune's drug for treating idiopathic pulmonary fibrosis, or IPF, offers no additional benefit to patients. The report was issued before yesterday's market open and buried the stock, which closed off more than 20%.

Now what: Management responded last night, saying it had serious concerns with the IQWiG's methodology and would prepare a response by Jan. 5, 2012. The details of the response are yet to be determined. Do you believe InterMune's follow-up will change minds? Would you buy shares of the biotech at current prices? Let us know what you think using the comments box below.

Interested in more information about InterMune? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

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  • Report this Comment On December 17, 2011, at 8:03 AM, Mauricinho wrote:

    "IQWiG, roughly Germany's equivalent to the FDA"

    I don't believe this statement is remotely accurate. IQWiG is a private organization that makes recommendations on the cost/benefit. They do not have the ability to regulate. Perhaps a comparison to the UK NICE is more appropriate.

    Technically management responded during the afternoon (12:45pm JP Morgan Conference Call).

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