Hedge funds hemorrhage on InterMune
By Suzy Kenly Waite
Fri Aug 20, 2010
A drug company with modern treatments may have given a group of hedge funds something akin to a medieval barber’s cure, as portfolios bled from the loss of FDA approval.
SAC Capital loaded up on shares of InterMune, a
pharmaceutical company, when it looked like the
company’s hotly anticipated new drug would get
approval from the Food and Drug Administration. But after the
approval did not come through and the stock plunged 80% in one
day, the prognosis for that investment does not look
SAC Capital was not alone, with several other big-name hedge
funds, including Citadel Investment Group, D.E. Shaw and
Millennium Management, holding shares in InterMune, a
biopharmaceutical company that develops drugs for pulmonary and
liver diseases. If the company’s new drug,
Pirfenidone, had gotten approval, it would have been the first
drug to cure idiopathic pulmonary fibrosis,...
ISSN: 2151-1845 / CDC10004H
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