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UPDATE 1-InterMune to cut workforce by 40 percent
May 26, 2010 / 9:46 PM / 7 years ago

UPDATE 1-InterMune to cut workforce by 40 percent

* Says to cut 60 jobs

* Says to take related charges of $2.4 mln in Q2

* Expects to save about $12 mln per year due to job cuts

* Expects job cuts to be completed by end of June

* Shares down 3 pct in extended trade

May 26 (Reuters) - InterMune Inc ITMN.O said it will cut about 40 percent of its workforce and expects to save nearly $12 million annually.

The company, struggling with the recent regulatory rejection of its experimental lung drug, said it expects to take related charges of about $2.4 million in the second quarter.

In a regulatory filing, InterMune said the job cut of 60 employees in the commercial and discovery research area is expected to be completed by the end of June.

Earlier this month, the U.S. Food and Drug Administration refused to approve InterMune’s pirfenidone to treat idiopathic pulmonary fibrosis -- a condition in which the lungs suffer scarring due to unknown causes -- and asked for a new clinical trial to prove it works. [ID:nSGE6440KB]

Shares of the company were down 3 percent at $8.60 in after-hours trade. They closed at $8.88 Wednesday on Nasdaq. (Reporting by Krishnakali Sengupta in Bangalore; Editing by Maju Samuel)

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