Goldman Sachs Downgrades InterMune Inc. (ITMN) to Neutral

Goldman Sachs downgraded InterMune Inc. (NASDAQ: ITMN) from Buy to Neutral with a price target of $49.00. The change is tied to valuation.

Analyst Terence Flynn said, "Our ITMN thesis rested predominantly on our view that the company’s key drug Esbriet for IPF would emerge from the ATS conference in May with a more favorable profile relative to competition, with upside to filing timelines and pricing. Given current valuation and with our thesis largely playing out, we move to the sidelines. Importantly, we continue to anticipate FDA approval of Esbriet on or before November 23 PDUFA date given the strength of the Ph3 data and FDA breakthrough therapy designation."

"We believe the following factors could drive further upside from current levels: (1) Esbriet pricing ahead of our projection of $75,000 (likely depends on label language on mortality), (2) regulatory setback for Boehringer Ingelheim (BI)’s Nintedanib, (3) larger market opportunity via more IPF patients and/or new indications, (4) success of ITMN’s early-stage pipeline and (5) M&A. While we will have clarity on Esbriet pricing by yearend, we do not anticipate a setback for BI given FDA breakthrough therapy designation, and we have limited visibility on points 3-5. This makes it difficult for us to justify a higher valuation at this point," he added.

For an analyst ratings summary and ratings history on InterMune Inc. click here. For more ratings news on InterMune Inc. click here.

Shares of InterMune Inc. closed at $52.06 yesterday.

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