MedImmune Inc. has secured FDA approval for a new version of its flu vaccine, FluMist, that requires refrigeration rather than freezing. The new formula, which will be available for the 2007-08 flu season, has been approved for use by healthy people between the ages of five and 49. Because it will be easier to store and distribute from schools, doctors' offices, pharmacies and grocery stores, MedImmune anticipates sales of the vaccine will improve substantially. FluMist was introduced in 2003, but failed to catch on because of the difficulty in handling frozen material. The company forecasts FluMist sales of about 3 million doses this season, but expects that figure to double once the refrigerated version is on the market. An inoculation will cost $16-20. The success of the new formulation will depend largely on MedImmune's success at obtaining FDA approval to give the product to babies and the elderly, a process for which it has filed an application.
• Sources: Reuters, MarketWatch, Bloomberg
• Related commentary: Matrix Asset Advisors Urges Sale of MedImmune, Vanda's Success Pays For MedImmune Investors. Conference call transcripts: Q3 2006
• Potentially impacted stocks and ETFs: MedImmune Inc. (MEDI). Competitors: Bristol-Myers Squibb Co. (BMY), Valeant Pharmaceuticals International (VRX). ETFs: First Trust AMEX Biotechnology Index (FBT), Biotech HOLDRs (BBH)
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