Apparently, a newsletter raised some issues about MEDI. Merrill, in a special call yesterday, derided the newsletter.
"Medimmune shares have been under pressure following the publication of a newsletter."
"However, we believe that the points in that this letter raises are essentially a recapitulation of old news."
"This letter claims that the company's lead product Synagis is expensive; that physicians are not prescribing it universally and that they are dosing it judiciously to children."
"We do not dispute that Synargis is a costly product. Indeed, if Synargis were the standard treatment, we believe it would achieve $1.5 billion in sales this season, as opposed to the appx. $350,000,000 which we are estimating. However, this should not be regarded as new news."
"Medimmune has met and indeed exceeded our estimates each quarter since we initiated coverage on this company."
"We reiterate our Buy/Buy rating, and believe that, if anything, our model may prove somewhat conservative."
With the biotech index up 21% last week, MEDI was down more than 10 points. Let's see what the next week brings. |
