FluMist Flop Dogs MedImmune

Shipping the vaccine and the containers to store it proved troublesome for pharmacies, thus impairing the Medimmune/Wyeth marketing strategy of giving people quick access to the vaccine without having to make an appointment with their physicians.

"We are only moderately disappointed with the lowered guidance, but we are optimistic about the positive test results," said Michael King of Banc of America Securities, in a research note issued Monday. "The company's announcement provides greater clarity for investors to handicap the stock and we believe Medimmune still retains a favorable risk reward profile."

(King has a buy rating on the stock. He doesn't own shares, but his firm is a market maker in Medimmune and expects to receive or seek compensation for investment banking services within the next three months.)

But Medimmune's forecast didn't persuade Dennis R. Harp of Deutsche Bank Securities who cut his rating Monday to sell from hold. Harp told clients in a research note Monday that he was disappointed with the lower 2004 financial guidance, which prompted him to drop his 12-month price target to $18.

FluMist will be "a drag on earnings" until at least 2007, and the stock will be affected by the slowing sales growth of Synagis, the respiratory disease drug and Ethyol, a drug to ease kidney damage caused by chemotherapy treatments for certain types of cancer. (He doesn't own shares, but his firm is a market maker in Medimmune's stock.)

Medimmune also suffered a ratings cut by CIBC World Markets on Monday to sector underperform from sector perform.