BRISBANE, Calif., July 9 /PRNewswire-FirstCall/ -- InterMune, Inc. announced today that it has entered into a new supply agreement with Boehringer Ingelheim Austria GmbH (BI Austria) for Actimmune(R) (interferon gamma-1b). As a result, InterMune eliminates approximately $91.6 million in future purchase commitments for Actimmune(R) that existed under the previous supply agreement.
In consideration for terminating the existing supply agreement and for entry into the new supply agreement, InterMune will pay to BI Austria the net amount of approximately $5.5 million. Under the terms of the new supply agreement, InterMune is not required to make any minimum annual purchase commitments and BI Austria is not required to commit to reserving any minimum annual capacity for the manufacture of Actimmune(R).
Dan Welch, Chief Executive Officer of InterMune, said, “We are very pleased to have eliminated the significant purchase commitments of the previous supply agreement and established a new supply agreement for Actimmune(R) on terms that are attractive to InterMune. Our new supply agreement provides for a steady supply of Actimmune(R) at the same cost as our previous supply agreement and allows flexibility to adapt supply to future demand for Actimmune(R).”
Termination of Existing Actimmune(R) Supply Agreement
On June 6, 2007, InterMune and BI Austria entered into a Termination Agreement related to their existing supply agreement of January 27, 2000, as amended, for the clinical and commercial supply of Actimmune(R). In consideration of the entry by BI Austria into the new supply agreement, the corresponding termination of the existing supply agreement, and the entry into the Termination Agreement, InterMune will pay to BI Austria the net amount of approximately $5.5 million. This net amount is derived in part by crediting against the lump sum amount owed to BI Austria under the Termination Agreement the approximate $4.5 million previously paid by InterMune to BI Austria pursuant to Amendment No. 4 of the existing supply agreement dated December 21, 2006. Pursuant to the Termination Agreement and new supply agreement, InterMune eliminates approximately $91.6 million in future purchase commitments for Actimmune(R) under the existing supply agreement for the years 2007 to 2012.
Entry into New Actimmune(R) Supply Agreement
On June 29, InterMune and BI Austria entered into a new agreement for the clinical and commercial supply of Actimmune(R). On July 6, InterMune filed an 8-K providing more details of this transaction. Under the terms of the new supply agreement, InterMune is not required to make any minimum annual purchase commitments and BI Austria is not required to commit to reserving any minimum annual capacity for the manufacture of Actimmune(R). On a going forward basis, InterMune will purchase supplies of Actimmune(R) from BI Austria based upon a rolling forecast. The cost per vial of Actimmune(R) is the same as existed in the previous supply agreement and will be annually adjusted with inflation. The new supply agreement is effective June 29, 2007 and will expire on December 31, 2012 unless both parties agree to extend it.
About Actimmune(R)
Actimmune(R) is a synthesized version of interferon gamma, a naturally occurring protein believed to stimulate the immune system. InterMune markets Actimmune(R) for the treatment of two life-threatening congenital diseases: chronic granulomatous disease and severe, malignant osteopetrosis. The most common side effects are flu-like symptoms, including headache, fatigue, fever, chills and rash. Physicians and patients can obtain additional prescribing information regarding Actimmune(R) including the product’s safety profile, by visiting www.actimmune.com.
About InterMune
InterMune is a biotechnology company focused on the research, development and commercialization of innovative therapies in pulmonology and hepatology. InterMune has a pipeline portfolio addressing idiopathic pulmonary fibrosis (IPF) and hepatitis C virus (HCV) infections. The pulmonology portfolio includes the Phase 3 program, CAPACITY, which is evaluating pirfenidone as a possible therapeutic candidate for the treatment of patients with IPF and a research program focused on small molecules for pulmonary disease. The hepatology portfolio includes the HCV protease inhibitor compound ITMN-191 in Phase 1a, a second-generation HCV protease inhibitor program, and a research program evaluating a new target in hepatology. For additional information about InterMune and its R&D pipeline, please visit www.intermune.com.
Forward-Looking Statements
Except for the historical information contained herein, this press release contains certain forward-looking statements that involve risks and uncertainties, including without limitation the statements related to InterMune’s reliance on a third-party manufacturer for commercial and clinical supplies of Actimmune(R). All forward-looking statements and other information included in this press release are based on information available to InterMune as of the date hereof, and InterMune assumes no obligation to update any such forward-looking statements or information. InterMune’s actual results could differ materially from those described in InterMune’s forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in detail under the heading “Risk Factors” in InterMune’s annual report on Form 10-K filed with the SEC on March 30, 2007 (the “Form 10-K”), and other periodic reports filed with the SEC, including risks related to the Company’s manufacturing strategy, which relies on third-party manufacturers and which exposes InterMune to additional risks where it may lose potential revenue; risks related to third-party manufacturers’ abilities to successfully carry out their contractual duties or meet expected deadlines; and risks related to the supply agreement with BI Austria which may restrict InterMune’s ability to establish alternative sources of Actimmune(R) in a timely manner or at an acceptable cost. The risks and other factors discussed above should be considered only in connection with the fully discussed risks and other factors discussed in detail in the Form 10-K and InterMune’s other periodic reports filed with the SEC.
InterMune, Inc.
CONTACT: investors, Jim Goff of InterMune, Inc., +1-415-466-2228,jgoff@intermune.com
