BRISBANE, Calif., May 9 /PRNewswire-FirstCall/ -- InterMune, Inc. announced today that it has reached a preliminary agreement to settle its shareholder class action lawsuit. The suit, entitled, “In re InterMune, Inc. Securities Litigation,” is currently pending against InterMune and its former CEO and former CFO in the United States District Court for the Northern District of California. Under the terms of the settlement, the defendants will receive a complete release of claims in the litigation, and the shareholder class will receive $10.4 million. The settlement is being funded in large part by InterMune’s primary insurance carrier, and is subject to a number of conditions, including the signing of a definitive settlement agreement and final approval by the court.
“We are pleased to be able to resolve this litigation,” said Dan Welch, President and CEO of InterMune. “While we were confident of our legal position, reaching this settlement allows us to focus on creating value for our shareholders by progressing our promising late-stage hepatology and pulmonology pipeline.”
As a result of this settlement, InterMune will include approximately $2 million of selling, general and administrative (SG&A) expense in its first quarter 2005 financial results to reflect the potential cost of this legal action. The Company reaffirms its 2005 SG&A expense guidance of $85-95 million.
About InterMune
InterMune is a biopharmaceutical company focused on developing and commercializing innovative therapies in hepatology and pulmonology. In addition to the currently marketed product indicated for the treatment of chronic hepatitis C virus (HCV) infections, three-times-a-week Infergen(R) (interferon alfacon-1), InterMune has a broad and deep late-stage product portfolio addressing HCV infections, particularly nonresponders, or those patients who do not respond to first-line therapy, and idiopathic pulmonary fibrosis (IPF). Leading the hepatology portfolio is the DIRECT Trial, a Phase III study of daily Infergen plus ribavirin, and a Phase IIb trial of daily Infergen plus Actimmune(R) (interferon gamma-1b) with and without ribavirin for the treatment of HCV patients who do not respond to first-line therapy. In addition, InterMune has an early stage small molecule program targeted at the HCV protease. The pulmonology portfolio includes pirfenidone and Actimmune. Pirfenidone is being developed for the treatment of IPF. Actimmune is being investigated in the INSPIRE Trial, a Phase III study in patients with IPF. For additional information about InterMune and its development pipeline, please visit http://www.intermune.com/.
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 anticipated future financial results and product development. 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 Form 10-K filed with the SEC on March 16, 2005 and other periodic reports filed with the SEC, including the following: (i) the risk that if physicians do not prescribe Actimmune for the treatment of IPF, an indication for which Actimmune has not been approved by the FDA, or if patient referral rates continue to decline, InterMune’s revenues will decline; (ii) risks related to regulation by the FDA and other agencies with respect to InterMune’s communications with physicians concerning Actimmune for the treatment of IPF; (iii) risks related to potential increases in Infergen sales; (iv) reimbursement risks associated with third-party payors; (v) risks related to whether InterMune is able to obtain, maintain and enforce patents and other intellectual property; (vi) risks related to significant regulatory, supply and competitive barriers to entry; (vii) risks related to the uncertain, lengthy and expensive clinical development and regulatory process, including having no unexpected safety, toxicology, clinical or other issues; (viii) risks related to achieving positive clinical trial results; (ix) risks related to timely patient enrollment and retention in clinical trials. 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 10-K report and InterMune’s other periodic reports filed with the SEC.
InterMune, Inc.
CONTACT: Investors: Judy Hayes of InterMune, Inc., +1-415-466-2242 orir@intermune.com; or Media: Carolyn Bumgardner Wang of WeissComm Partners,Inc., +1-415-946-1065 or carolyn@weisscommpartners.com, for InterMune, Inc.
Web site: http://www.intermune.com/
