MedImmune Inc.'s long-awaited RespiGam approval Friday didn'tdo much to the company stock, which had posted significant gains onearly stage news one day earlier. (See BioWorld Today, SpecialNews Bulletin, Jan. 19, 1996).

The Gaithersburg, Md., company received marketing clearance forthe respiratory syncytial virus (RSV) immune globulin to preventRSV disease in children younger than 2 with bronchopulmonarydysplasia or a history of prematurity (less than or equal to 35 daysgestation). Post-marketing studies to be initiated next fall will attemptto show benefit in other populations of youngsters.

MedImmune's stock (NASDAQ:MEDI) closed Friday down 38 centsat $18.88, about the same closing price the stock had Jan. 3, 1996,when it registered for a two million share public offering. At thatprice the offering would gross about $38 million.

MedImmune stock had gained $2.25 Thursday when its bacterialvaccine partner, Human Genome Sciences Inc. (HGS), announced thedetermination of more than 99 percent of the sequence of theStaphylococcus aureus bacterium. MedImmune will evaluate vaccinecandidates and be responsible for their development andcommercialization. (See BioWorld Today, Jan. 19, 1996, p. 1.)

HGS' stock (NASDAQ:HGSI) moved up $8.25 Thursday, andgained another $10 Friday before closing at $42.75, up $3.

Analysts said there was nothing specific that moved the stock to itshighest level ever on Friday.

"Its a stock a lot of people want to own," said David Molowa, ananalyst with New York-based Bear Stearns Co., adding that there areas many who want to sell. "[HGS] is viewed as having technology oftremendous value. Trying to figure out what it's worth is difficult."

Molowa said the speed with which HGS sequenced the bacteriumwas impressive, and the result showed the power of the Rockville,Md., company's technology.

MedImmune and marketing partner Wyeth-Ayerst Laboratories, aPhiladelphia-based division of American Home Products Corp., planto roll out RespiGam later this year in time for the November-AprilRSV season. The companies have an undisclosed profit-sharingarrangement.

MedImmune officials, and some analysts that follow the company,are restricted from discussing certain specifics because the companyis under registration for a public offering.

Analysts have estimated 1996 RespiGam sales at $10 million to $15million, with sales increasing in ensuing years.

Reijer Lenstra, an analyst with Smith Barney Shearson in New York,said the drug is expensive at an average cost of $4,500 per child perRSV season. Cost-containment issues likely will come into play, hesaid. n

-- Jim Shrine

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