>>BOSTON, April 5 /PRNewswire/ -- This morning, Jennifer M. Chao, Senior Biotechnology Analyst, initiated coverage of InterMune, Inc. (Nasdaq: ITMN - news) with a Speculative Buy rating and a 12-month price target of $72 based on a P/E multiple of 70X its fully taxed 2005 EPS estimate of $1.74, discounted back at a 30% annual rate. InterMune's technology value stands at only 3.6X its projected 2003 revenue, representing a steep 82% discount compared to the average 20.5X for a comparable group of 11 small- to mid-cap biotechnology companies. Ms. Chao believes InterMune represents a compelling investment opportunity.
A MEDACorp survey of 25 pulmonologists suggests that InterMune's lead product, Actimmune (interferon gamma-1b), has the potential to markedly improve the prognosis of patients with idiopathic pulmonary fibrosis (IPF), a life-threatening lung disease. Ms. Chao believes that Actimmune represents the most promising therapy for IPF to date, addressing a potential market opportunity exceeding $800 million. She projects U.S. Actimmune revenue in IPF of $83 million in 2002, $162 million in 2003, $278 million in 2004, and $419 million in 2005.
Already approved for two rare congenital disorders, Actimmune for IPF is in a Phase III trial expected to be completed in Q3:02. Ms. Chao believes InterMune is well positioned to rapidly penetrate the U.S. IPF market upon FDA approval, anticipated in mid-2003.<<
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Cheers, Tuck |
