FDA Makes InterMune Sick (ITMN, GSK, AZN, GILD, VRTX, ACHN, VRUS)

I originally wrote this piece right after InterMune announced its FDA setback, but there was a bit of a logjam in the editing process. In any case, there are still some valuable points here. 

Failure is an inherent risk in the boom-and-bust world of biotech, and InterMune (Nasdaq: ITMN) shareholders saw that risk play out on Wednesday morning. The FDA effectively rejected the company's application for marketing approval of Esbriet (pirfenidone) in the treatment of idiopathic pulmonary fibrosis. 

Clearly the damage has already been done, but what InterMune investors must decide now is whether there is enough promise in the drug and the company to hang on in the hopes of a rebound. 

For the rest of the article, please click on the following link:
http://stocks.investopedia.com/stock-analysis/2010/FDA-Makes-InterMune-Sick-ITMN-GSK-AZN-GILD-VRTX-ACHN-VRUS0510.aspx