Updated from April 26

MedImmune ( MEDI) shares fell Tuesday as the company adjusted earnings guidance after the drugmaker and Wyeth ( WYE) agreed to dissolve their collaboration on the financially disappointing FluMist nasal influenza vaccine.

Exclusing items, MedImunne said its expects a loss of 17 cents to 21 cents a share in the second quarter and a profit of 42 cents to 49 cents a share for full-year 2004. Last week, the company forecast a loss of 13 cents to 16 cents a share in the current quarter. The consensus estimates are for a loss of 12 cents a share for the quarter and a profit of 53 cents for all of 2004, according to Thomson First Call.

As a result of the somewhat expected move, which is subject to government approval, MedImmune will have worldwide rights to these products and will assume full responsibility for the manufacturing, marketing, and selling of the drug.

As part of the dissolution, MedImmune will acquire Wyeth's distribution facility in Louisville, Ky. Wyeth is providing bulk manufacturing materials and will transfer clinical trial data, as well as provide manufacturing services, during a transition the companies expect to complete in large part by the fourth quarter of 2004.

MedImmune will pay Wyeth an undisclosed upfront payment, milestone payments upon achievement of certain future development and regulatory events, and royalties on future product sales.

FluMist sales have lagged since its introduction, and analysts had suggested that Medimmune would have a better chance of at least breaking even as a company without having to share the profits of one of its biggest products with the giant partner.

Shares were down 67 cents, or 2.8%, to $23.40 in premnarket trading.

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