recently announced that it has entered into an agreement with
Vidara Therapeutics International Limited for the sale of its
rights to Actimmune for $55 million plus royalties. Vidara is a
part of an international group of companies operating in the U.S.
As per the agreement, InterMune is set to receive $55 million in
cash from Vidara. Moreover InterMune will receive royalty payments
on Actimmune sales over a two-year period.
Actimmune is approved for the treatment of chronic granulomatous
disease (CGD) and severe, malignant osteoporosis. Actimmune sales
for the year 2011 were $20.2 million. Notably, the company stopped
its efforts for additional indications for Actimmune, as it turned
its focus on its lead product Esbriet. Management conceded that
Actimmune has so far been the company's tactical financial asset.
The deal is scheduled to close later this quarter.
We believe that the divestment of Actimmune will be beneficial
for InterMune, as the company can now focus totally on the
development and commercialization of lead product, Esbriet. The
agreement will also boost the company's cash balance of $377.2
million (as of the end of the first quarter of 2012).
After the launch of Esbriet during the final quarter of 2011,
all attention has been bestowed on the drug. The product is
marketed in Germany and InterMune is looking to launch Esbriet in
additional countries in the E.U.
We currently have a Neutral recommendation on InterMune, which
carries a Zacks #3 Rank (short-term 'Hold' rating). Though the move
to sell the rights of Actimmune will not only raise cash but also
enable the company to pay more focus on Esbriet, pricing concern
for the latter is still an issue.
INTERMUNE INC (ITMN): Free Stock Analysis
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