MedImmune Inc.'s story got a nice reception in its first publicoffering since 1991. It sold 1 million more shares than originallyproposed.

The Gaithersburg, Md., company _ coming off its second productapproval _ grossed $54 million Wednesday from the sale of 3million shares at $18 each. MedImmune last month registered for anoffering of 2 million shares at a time when the stock was at about$19.

The company reported $38 million in cash on Dec. 31, 1995, andsince has received a $4.5 million milestone payment fromcollaborator American Home Products Corp. The company then hasabout $94 million less what it's spent this quarter. In 1995MedImmune had a net loss of $22.7 million.

Morgan Stanley & Co. Inc., of New York, and Vector SecuritiesInternational Inc., of Deerfield, Ill., underwrote the offering and havean option to purchase another 450,000 shares. Post-offeringMedImmune has 20.7 million shares outstanding.

The stock (NASDAQ:MEDI) was received well after the offering,too, as it gained 25 cents Wednesday to $19.75.

A month ago MedImmune received FDA approval to marketRespiGam, an immune globulin for prevention of respiratorysyncytial virus (RSV) in young children. Within a week MedImmuneand its expanded sales force began selling the product. AmericanHome, of Madison, N.J., is co-promoting RespiGam in a profit-sharing arrangement.

MedImmune will use the proceeds from the offering to support thelaunch of RespiGam, for research and development, and for a portionof a manufacturing plant being planned, said Mark Kaufmann,MedImmune's manager, strategic planning and investor relations.

MedImmune plans to build a facility to manufacture RespiGam,CytoGam _ another approved drug _ and other products.Kaufmann said the facility likely will be built in Cleveland orMaryland, and will be financed mostly through state and localfinancing mechanisms.

In its prospectus MedImmune said proceeds from the offering shouldlast at least 24 months.

The company focuses on drugs for infectious diseases and fortransplantation.

Behind RespiGam in the infectious disease area is MEDI-493, amonoclonal antibody for prevention and treatment of RSV disease.The product, in Phase II, could have advantages over RespiGam inpotency and because it can be delivered via intramuscular injectionrather than intravenous infusion.

Kaufmann said MedImmune is the only company with a parvovirusvaccine in the clinic. The B19 parvovirus vaccine is completingPhase I, as is a Lyme disease candidate. The company hopes to take aLyme disease vaccine into the clinic this year, he said. The infectiousdisease research also incorporates work MedImmune is doing withHuman Genome Sciences Inc., of Rockville, Md., in the area ofmicrobial genomics.

CytoGam is the lead product in transplantation. Behind that areMEDI-5000, which MedImmune hopes to take into Phase III trials bymid-year in reversal of organ transplant rejection; and BTI-322, amonoclonal antibody recently taken into Phase I/II studies to treatand prevent organ transplant rejections. That candidate is beingdeveloped with BioTransplant Inc., of Boston. n

-- Jim Shrine

(c) 1997 American Health Consultants. All rights reserved.