Medimmune Case

Topics: Vaccine, Respiratory system, Human respiratory syncytial virus Pages: 3 (747 words) Published: October 19, 2012
MedImmune Case Study
MedImmune is dedicated to helping patients live better lives through advances in science and medicine. Hundreds of thousands of patients have benefited from their products, which are designed to treat or prevent infectious diseases, cancer and inflammatory diseases (Wikipedia, 2012). Their extensive research and development efforts are focused on these same areas. MedImmune acquired FluMist when it purchased Aviron in 2002. FluMist is Aviron’s lead product for development and commercialization, it’s a live virus vaccine delivered to the patient as a nasal mist for the prevention of influenza (Wikipedia, 2012).

Key Issues
The board of MedImmune believed that Aviron was a good strategic fit but didn’t know what to offer. We need to see all the advantages and disadvantages to come to the conclusion. With other vaccines and cancer treatment products, MedImmune wants to get larger market shares and become the leader in vaccines discovery, development, manufacture, and marketing. From the background we can see Aviron is also a biopharmaceutical company. Its lead product, FluMist, is also a live vaccine. There is a huge overlap in their researches, which can provide MedImmune a good scale of economy and cost efficiency. For Example, Synagis, as MedImmune’s main product, is the first monoclonal antibody successfully developed to combat infectious disease, and is indicated for the prevention of serious lower respiratory tract disease caused by respiratory syncytial virus (RSV) in pediatric patients at high risk of RSV disease. Aviron’s PIV-3 is a common childhood respiratory virus (Wikipedia, 2012). By purchasing Aviron, MedImmune will achieve all complete products and undergoing clinical trials including the tax credits up to 50% attached.

First of all, what need to be concerned is that even though FluMist helped Aviron generate $11.7 million in revenue for the first nine months of 2001, it reported a net loss of $89.2...
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