By Tiare Rath, CBS MarketWatch
Last Update: 4:04 PM ET Nov 10, 1998 NewsWatch
MOUNTAIN VIEW, Calif. (CBS.MW) -- Aviron's shares headed south Tuesday after the company recorded losses wider than analysts' estimates.
Aviron (AVIR), a biotechnology company researching immunization vaccines, said it lost $15 million, or 95 cents a share, during its third quarter. Analysts surveyed by First Call expected Aviron to lose 73 cents a share; the consensus estimate from Zacks Investment Research was for a loss of 88 cents a share.
The losses were more than twice the company's 1997 third quarter, when Aviron lost $6.1 million, or 43 cents a share. Revenue, however, rose to $107,000 from $32,000 a year ago.
The stock dropped 1 1/4 to close at 20 1/4.
Aviron dug itself into a cash hole with heavy spending on its FluMist influenza vaccine, which it's developing as a nasal spray treatment for children and adults. The company's stock tanked in September after Aviron learned the Food and Drug Administration rejected its FluMist filing, requesting more information about the product's manufacturing.
Analysts said research and development costs as well as selling, general and administrative expenses came in above what they expected during the quarter.
David Molowa, analyst at Bear, Stearns, upped his fourth-quarter loss estimate to 96 cents a share from 90 cents a share as a result of the higher expenses, which he expects will continue in the fourth quarter.
The consensus estimate from analysts is for the company to lose 78 cents a share in its fourth quarter.
Molowa said Aviron investors should watch two events for the rest of the year. The first is an FDA advisory panel meeting on vaccines Nov. 19 and Nov. 20. The second is when Aviron signs a marketing deal for its FluMist product, which the analyst expects will happen by the end of the year.
In addition, Aviron said it will unveil FluMist study data Dec. 5 at the International Symposium on Influenza and Other Respiratory Viruses in Maui, Hawaii. The data will come from tests done on 4,600 adults, the company said in a statement.
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