Thursday, February 17, 2000, 11:30 am EST
MedImmune announces much-anticipated stock split
MedImmune, Inc. (NasdaqNM: MEDI) came out after the start of
trading this morning to announce that its Board of Directors had
approved a 3 for 1 stock split of the Company's common shares, to
be paid in the form of a 200% stock dividend. The split is
contingent upon shareholder approval, calling for an increase in
the number of authorized shares. A vote to increase the
authorized shares from 120 million to 320 million will take place
at the Annual Meeting of Shareholders, scheduled for May 18,
2000. If approved, shareholders of record that day (May 18th)
will receive two shares for every one owned. The additional
shares will be distributed by the Company's transfer agent on or
about June 2, 2000. The Company currently has approximately 67.9
million shares issued and outstanding.
MedImmune has become one of the most recognized names in the
biotechnology arena. They are responsible for the development of
some of the most widely used drugs in the areas of transplant
medicine and infectious disease. Their products include Synagis
and RespiGam, used to treat respiratory syncytial virus in
infants. Another of their products in wide use is CytoGam, used
in the treatment of primary cytomegalovirus virus. This virus
often affects kidney transplant patients.
MedImmune first formed in 1988 but did not go public until
December of 1991. Shares were offered at $43.50 at that time.
Shareholders were forced to exercise patience as the Company
spent their time and resources in the development of new
products. During that period, the share price remained well
below $20 for the most part. In 1998, shareholders were rewarded
as the stock price rose to trade near the century mark. The
Company issued their first stock split late that year, a two for
one. Since then, the share price has more than doubled, trading
today above $200 for the first time in their history.
SplitTrader.com has anticipated this split announcement for some
time, having added the stock to our Split Candidate's list this
past fall. When the Company failed to announce a split with
their earnings release in late October, investors expressed their
disappointment by selling off the stock sharply. Shares of MEDI
have since recovered in dramatic fashion, fueled in large part by
the explosion in the biotech sector since the first of the new
year. Even after the Company failed to announce a stock split
last October, we continued to monitor the stock and added it back
to our Split Candidate's list in mid-January. This was in
anticipation of an announcement with their earnings release in
late January. Once again, the Company fooled investors and us
alike by making no mention of a split. Despite that, the stock
has continued to perform well and investors seem to have
forgotten any lingering disappointment. Today's action is proof
of the overall excitement surrounding the Company and its stock.
Trading in MedImmune is heavy, with over 1.4 million shares
changing hands on a daily basis. The fact that the Company is
positioned as a leader in one of the hottest sectors in the
market leads us to believe that this may well be one of the
better split run opportunities to come along so far this year.
As such is the case, we anticipate adding shares of MEDI to our
Recommended Split List in the very near Future. |
