MedImmune's 2nd-qtr 2006 loss deepens 43%

For the second quarter of 2006, MedImmune's net loss deepened 43% on the like, year-ago period, to $63.0 million, or $0.26 per share, as R&D costs rose 20% to $94.0 million and sales of its flagship products fell.

The US drugmaker's total revenues dropped 20.5% to $73.0 million, as the period is out of season for its four marketed products. Its leading drug Synagis (palivizumab), a treatment for respiratory infections, saw a 45% US sales drop, while Flumist (Influenza Virus Vaccine Live, Intranasal), also suffered, as these drugs treat serious respiratory viruses that most commonly occur in the fall and winter months.

During the period, gross margins on product sales were 79% versus 67%. The impact of FluMist on overall gross margins during the period was largely neutral, while last years' second-quarter gross margin would have been 71% excluding the flu vaccine. The remaining increase in gross margin was due to declining royalties and manufacturing efficiencies for its oncology product Ethyol (amifostine), combined with an end-of-season reduction in sales allowances for Synagis.