A Pilot Study of Aerosol Interferon-gamma for Treatment of Idiopathic Pulmonary Fibrosis

Inclusion Criteria: * Patients diagnosed with IPF based on accepted criteria (see above) within 12 months prior to screening. * Age 40-75. * Absence of significant pulmonary hypertension as measured by right heart catheterization (mPAP ≥ 30 mmHG) or echocardiography (RVSP ≥ 50 mmHg). * FVC ≥ 55% of predicted baseline value at screening; DLCO ≥ 30% predicted. * PaO2 ≥ 65 mm Hg at rest on room air * Patient able to understand and willing to sign a written informed consent and willing to comply with all requirements of the study protocol including lung deposition studies. * Patient fits criteria for research bronchoscopy and is willing to undergo procedure. Exclusion Criteria: * Six minute walk distance of \< 200 meters. * Patient unwilling or unable to undergo research bronchoscopy. * Patient with known life threatening asthma or severe COPD. * Patient requiring oxygen therapy for maintenance of adequate arterial oxygenation at rest. * Patient with hypersensitivity to study medication or other component medication. * Patient with known severe cardiac disease, severe peripheral vascular disease or seizure disorder which may be exacerbated by study drug administration (contraindications to drug administration as per package insert). * Pregnant or lactating; Females of child-bearing potential will be required to have negative pregnancy test and be required to use accepted form of birth control (abstinence for study duration is the preferred method). * Evidence of active infection within one week prior to treatment. * Any condition, other than IPF, which is likely to result in the death of the patient within one year from study enrollment. * Abnormal serum laboratory values including: * Liver function above specified limits: total bilirubin \> 1.5 X upper limits of normal, alanine amino transferase \> 3X upper limit of normal, alkaline phosphatase \> 3X upper limit of normal, albumin \< 3.0 at screening. * CBC outside specified limits: WBC \< 2,500/mm3, hematocrit \< 30 or \> 59, platelets \< 100,000/mm3. * Creatinine \> 1.5X upper limits normal at screening. * Drugs for therapy for pulmonary fibrosis, including corticosteroids, azathioprine and/or cyclophosphamide, or n-acetylcysteine within the previous six weeks. * Prior therapy with any class of interferon medication. * Investigational therapy for any indication within the last 28 days. * In a pulmonary rehabilitation program or planning to attend a pulmonary rehabilitation program.