FluMist Flop Dogs MedImmune

Updated from 8:22 a.m. EST

Medimmune said Monday that it would stick with FluMist, its inhaled flu vaccine, conceding that the product wouldn't produce meaningful financial results until the 2007-2008 flu season. FluMist has been a flop, but the company insisted that an improved version of the drug launched in September could eventually produce annual U.S. sales of $500 million.

As a result, the company issued financial guidance for 2004 that fell well below analysts' predictions, triggering a beating of Medimmune's stock. Recently, shares were down $1.69, or 6.6%, to $24.

Medimmune, of Gaithersburg, Md., predicted 2004 earnings per share of 50 cents to 60 cents, caused in part by the reduced revenue role of FluMist and the acceleration of research and development spending on creating a second-generation flu vaccine that will reach more people. R&D will rise to 20% of sales, up from 16%, but the company said some tests on the new version of FluMist are promising. ...