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)
announced late Tuesday it would acquire Facet for a 67% premium . -- Reported by Eric Rosenbaum in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.