InterMune Inc. (ITMN)

[ghmm]

Commentary on InterMune buyout of the future Pirfenidone License Obligation to Marnac

See #msg-24789132 for story

I think the buyout price is extremely cheap considering the potential future royalty revenue. Couple that with the fact that Marnac is only paid upon a positive outcome in CAPACITY. This makes me think Marnac was more the seller then InterMune the buyer. But at those terms I am surprised one of the Royalty companies (such as Drug Royalty or Royalty Pharma) wouldn't offer more. When InterMune was in the 30's I thought a good (and fair) deal would be for InterMune to buy out the royalty for between 2-3 million shares and that would be straight out not contingent upon positive results!

Aside from the buyout of the Royalty this does several things. Should InterMune look to sell/partner [both of which I am against unless completely blown away] things are much cleaner in terms of Pirfenidone. InterMune has long stated they are pursuing life-cycle management options for Pirfenidone and have said patents is one avenue. I am not an expert on patent law but while I gather controlling the IP vs. licensing may not offer a direct benefit it may be that they have/are applying for patents that relate/build on existing ones that were under Marnac's control and having them all under one umbrella helps in enforcing/litigating should it be necessary. Yet another benefit though unclear from the initial PR is what else did InterMune buy? Previously their license was x-Japan-far east [which did not change] but was just for Fibrotic Indications. Pirfenidone has been explored in many indications #msg-24788957. Could InterMune also have found out something in their in vitro work? I'm hoping we get more details in the K.