Why InterMune Inc. Lost Big Today

Why InterMune Inc. Lost Big Today

Shares of InterMune tumbled by more than 15% today, as the company is suffering from a possible trial data leak from a competitor's idiopathic pulmonary fibrosis drug, which successfully passed its phase 3 trials, and put up solid data. David points to one analyst from Summer Street who quickly came to InterMune's defense, saying that while the two drugs are technically competitors, patients would be cycled between them, given the nature of the IPF disease.

In this segment, Motley Fool health-care analyst David Williamson takes a look at ITMN today, a stock he sees as one that could vary wildly up or down by 50% based on what happens with its drug Esbriet. He talks investors through both scenarios, and also discusses what strong trial data vs. weak could mean for the company, and when investors may see results.

Biotech stocks are known for their volatility, but they can also make you rich.
The best way to play the biotech space is to find companies that shun the status quo and instead discover revolutionary, groundbreaking technologies. In the Motley Fool's brand-new FREE report, "2 Game-Changing Biotechs Revolutionizing the Way We Treat Cancer," find out about a new technology that big pharma is endorsing through partnerships, and the two companies that are set to profit from this emerging drug class. Click here to get your copy today.

The article Why InterMune Inc. Lost Big Today originally appeared on Fool.com.

David Williamson has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published