MedImmune says Q1 revenue down slightly, predicts full-year earnings of $0.19-$0.24 per share

By Angela McDaniels

Seattle, April 20 - MedImmune Inc. said its total revenue fell slightly to $498 million for the first quarter ended March 31 from $510 million for the first quarter of 2005, and total product sales decreased to $492 million from $509 million during the same period.

The company said it now expects total revenue for 2006 to grow about 4% to roughly $1.3 billion and 2006 earnings per diluted share to range from $0.19 to $0.24.

Following lower-than-expected sales of Synagis in the first half of 2006, MedImmune predicted that worldwide sales of Synagis will resume their pattern of growth in the second half of the year and that sales of the product for the full year will be about even with 2005.

Worldwide sales of Synagis were $463 million for the first quarter of 2006, compared with $472 million for the first quarter of 2005.

The company's net earnings for the first quarter of 2006 were $47 million, or $0.18 per diluted share, including share-based compensation expense and as calculated in accordance with generally accepted accounting principles.

Excluding share-based compensation expense, net earnings decreased 48% to $59 million, or $0.23 per diluted share, from $114 million, or $0.45 per diluted share, for the first quarter of 2005.

The company attributed some of the decrease to an increased investment in its long-term business plan.

"While we continue to make excellent progress toward achieving our long-term objectives of $2 billion in revenue and $2.00 in earnings per share in 2009, before share-based compensation expense, our recent sales results have been disappointing," president and chief executive officer David M. Mott said in a company news release.

"Unfortunately, the effect of ... changes in payer guidelines, disruptions in our distribution network and the one-time effects of Hurricanes Rita and Katrina have taken a more significant toll on seasonal sales of Synagis than previously expected.

"We have made a number of changes to our marketing and sales organization and our Synagis distribution network and are in the process of completing a significant expansion of our sales team in connection with the previously announced buyout of Abbott International's U.S. co-promotion rights for Synagis following the 2005-2006 respiratory syncytial virus season."

Cash and marketable securities at March 31 were $1.6 billion, compared with $1.5 billion at Dec. 31.

MedImmune is a pharmaceutical company based in Gaithursburg, Md., that develops products to treat infectious diseases, cancer and inflammatory diseases.

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