Deutsche Bank downgraded MedImmune (MEDI) to sell from hold.
Analyst Dennis Harp says he downgraded MedImmune following the company's announcement that the launch of FluMist, its flu vaccine, has been disappointing. He says he believes FluMist is fundamentally an excellent product, but thinks it has been mispriced in market and is selling for much more than a conventional flu shot. As a result, he thinks FluMist problems may persist into subsequent years.
Harp notes MedImmune cut its 88 cents to 93 cents 2003 adjusted earnings per share guidance to 72 cents to 80 cents. As a result, he cut the 94 cents 2003 earnings per share estimate to 77 cents, trimmed the $1.18 2004 earnings per share estimate to 87 cents, and slashed the $31 target to $15.