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MedImmune Tanks

What a pathetic showing for MedImmune (MEDI) out there today.

The makers of flu vaccine flu mist posted a fourth-quarter net loss, citing heavy acquisition costs which pounded what they thought would be strong sales from respiratory drug Synagis.

What a joke that was.

The company posted a net loss of $22 million compared with a profit of $51 million a year ago.

Back on September 8th, we said this stock was dead money since it was priced on a hyped up flu scare:

Another 3 million doses will come from -- you guessed it -- MedImmune, whose FluMist nasal spray has been a hit with kids but less so with shareholders.

FluMist is currently approved only for ages 5 to 49 - the group with the lowest vaccination rate. Second, the price tag is a problem investors are overlooking: FluMist costs at least 2 times what a simple $10 or $20 needle injection costs.

The CDC estimates 36,000 people a year die from influenza. However, since a deadly combination of government regulation and pricing pressures put the once booming vaccine industry on flatline, the companies have been eking out whatever small profits they can.

MedImmune has $28 written all over it.

posted by Catablast! Media Group @ 4:37 PM