MedImmune to explore buy-out options
Board of directors reacts to heightened interest from Big Pharma and growing shareholder disatisfication
Pleasing federal regulatory authorities is easy, at least when compared to satisfying investors. Three months after the FDA approved Gaithersberg, Maryland-based MedImmune’s FluMist vaccine, and two months after rumors began circulating that the company would pursue a joint distribution deal with flu vaccine patch-manufacturer Iomai, MedImmune is now exploring takeover options. The move comes in the face of heightened interest from large pharamceutical companies and growing investor unhappiness with the company’s performance — in particular concerns about the roll-out of FluMist and the announcement of a delayed filing for federal approval of a new version of Synagis, a childhood respiratory drug.
According to the AP, MedImmune in the past has rejected takeover offers, believing its business plan was solid — a position it maintained even when investor Matrix Asset Advisors said it should explore a sale. The company sports a market capitalization of $9 billion, posted $1.28 billion in revenue last year, and expects earnings to nearly triple when it reports fiscal second quarter results in May. Company shares jumped almost 13 percent Thursday in early Nasdaq trading, increasing $4.84 to $42.69, a new 52-week high.
ess Release: MedImmune Explores Strategic Alternatives
April 12, 2007
