Biotech Gainer: Intermune

Shares of Intermune skyrocket after an FDA advisory panel recommends that the agency approve Intermune's niche lung drug.
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BRISBANE, Calif. (

TheStreet

) -- Shares of biotech company

Intermune

(ITMN)

are up more than 65% on Wednesday after an FDA panel recommended that the agency approve a proposed lung drug, pirfenidone.

The Intermune drug treats a lung condition known as idiopathic pulmonary fibrosis, caused when tissue in the lungs becomes thick and scarred.

More than 9 millions shares of Intermune were traded on Wednesday morning, versus an average daily volume of 2.7 million.

Thomas Weisel Partners more than doubled its price target on Intermune, from $26 to $55.

Intermune shares reached $38.65 after a gain of more than $15 on Wednesday morning. Weisel believes that spike is only the beginning of the upside potential in Intermune shares.

However, the Weisel analyst did provide at least a minor note of caution amid the bullish take on Intermune, writing, "While we are generally cautious of companies in the post-clinical/pre-commercialization phase of a new product launch, we believe our current assumptions are quite modest.... We also believe there will likely be a M&A premium that gets baked in here as well, as product-focused mid-caps remain favorite targets for big pharma looking to leverage existing commercialization infrastructures."

Shares of

Facet Biotech

(FACT)

were also up more than 65% on Wednesday morning after

Abbott Laboratories

(ABT) - Get Report

announced late Tuesday it would acquire Facet for a 67% premium.

-- Reported by Eric Rosenbaum in New York.

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