Roche Pays InterMune $175M for Rights to Danoprevir
BioWorld Today - Oct. 07, 2010
$530M Deal Axed
InterMune Inc. reported late Wednesday that it sold worldwide development and commercialization rights to danoprevir (RG7227 or ITMN-191) to partner Hoffman-La Roche Inc. and F. Hoffman-La Roche Ltd., of Basel, Switzerland, for $175 million in cash.
In connection with the transaction, the collaboration agreement that Brisbane, Calif.-based InterMune and Roche entered into in October 2006, valued at a potential $530 million, has been terminated. In addition, the companies are actively exploring ways to continue their ongoing work together on other hepatitis C virus research programs. (See BioWorld Today, Oct. 18, 2006.)
With the net proceeds from the transaction, InterMune expects to have a cash balance of about $290 million at the end of 2010.
InterMune's Dan Welch, chairman, CEO and president, said the cash infusion will allow his company to "aggressively pursue" the registration and commercialization of pirfenidone, a drug that failed to win FDA approval as a treatment for idiopathic pulmonary fibrosis despite the strong backing of an agency panel of experts. (See BioWorld Today, May 5, 2010.)
The company's stock (NASDAQ:ITMN) lost 32 cents, to close at $13.45 Wednesday, but following the late-breaking news, was up as much as 9 percent in after-hours trading.
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