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InterMune Reports Second Quarter 2014 Financial Results and Business Highlights
Date:8/6/2014

ionally keep very close control of inventory levels; and the typical time required to gain meaningful reimbursement for newly launched medicines during the first months of launch. 

Research and Development (R&D) expense:  Currently anticipated to be in a range of $130 to $140 million (previously $110 to $120 million).  The updated range primarily reflects the company's decision to accelerate various investments in its promising research, pre-clinical and clinical development programs, including but not limited to the pirfenidone analog and LPA1 inhibitor programs. Additionally, InterMune noted that fourth quarter 2014 R&D expenses are currently anticipated to be in a range of approximately $30-$35 million.

Selling, General and Administrative (SG&A) expense:  Currently anticipated to be in a range of $250 to $260 million (previously $210 to $225 million).  The updated range primarily reflects the impact of decisions taken in the second quarter to significantly accelerate the building of the U.S. SG&A infrastructure and expand its size and scope versus prior estimates, to fully capitalize on the promising opportunity of pirfenidone in the attractive U.S. market.  The current plan is to substantially complete the building of this infrastructure by the end of the third quarter of 2014 in order to be prepared for the potential launch of pirfenidone in the U.S. in the fourth quarter of 2014 (versus prior plans of first quarter 2015).  Increased year-over-year SG&A expenses also reflect the full-year effect on 2014 expenses of commercial organizations that were established in the summer of 2013 in Italy and the UK and additional infrastructure to support the marketing of Esbriet in European countries beyond the company's 15 initial top-priority targeted EU markets.  

Additionally, InterMune noted that fourth quarter 2014 SG&A expenses are currently anticipated to be in a range of approxi
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SOURCE InterMune, Inc.
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