Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: IQWiG, roughly Germany's equivalent to the FDA here in the U.S., says that InterMune's drug for treating idiopathic pulmonary fibrosis, or IPF, offers no additional benefit to patients. The report was issued before yesterday's market open and buried the stock, which closed off more than 20%.
Now what: Management responded last night, saying it had serious concerns with the IQWiG's methodology and would prepare a response by Jan. 5, 2012. The details of the response are yet to be determined. Do you believe InterMune's follow-up will change minds? Would you buy shares of the biotech at current prices? Let us know what you think using the comments box below.
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At the time thisarticle was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Motley Fool newsletter serviceshave recommended buying shares of athenahealth and Quality Systems. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.