ASSOCIATED PRESS
Wyeth has given up its rights to the influenza vaccine FluMist after a disappointing first season on the market for the drug, MedImmune Inc. and Wyeth said yesterday.
Wyeth, which marketed FluMist for manufacturer MedImmune, said it was leaving the partnership to focus on its own vaccine business. The Gaithersburg biotechnology company will get back full rights to FluMist and be responsible for all production, sales and marketing.
MedImmune will give Wyeth an upfront payment for the rights and milestone payments in the future, but the companies did not specify those payments. MedImmune also will buy Wyeth’s Louisville, Ky., distribution facility for an undisclosed amount.
MedImmune spokeswoman Jamie Lacey said the company would discuss the effect of Wyeth’s move in a conference call today.
Wyeth and MedImmune had warned for the past several months that they might end their deal after the drug, which they hoped would be a blockbuster, fell flat.
MedImmune said in March that it plans to go ahead with FluMist and is trying to get federal approval of a version that could be used for toddlers and the elderly — two key markets for flu vaccines.
The move will be costly for MedImmune. The company said in March that if Wyeth left the partnership it expected a drop in earnings of 10 cents to 20 cents per share each year until 2007.
FluMist is a live-virus vaccine that is squirted into the nose rather than delivered with the traditional flu shot. MedImmune hoped to market it to young children who fear needles but are at highest risk from the flu.
To sell the drug, MedImmune relied on the larger Wyeth’s marketing muscle to promote it to pharmacies and doctors. The companies began a $25 million advertising campaign in the fall to introduce the drug.
But, despite one of the worst flu seasons in recent years, FluMist failed to catch on. It was much more expensive than flu shots, and was only approved for people older than 5 years and younger than 49. It also was hard for doctors to store because it had to be frozen.
MedImmune estimated that it distributed about 830,000 doses out of about 4 million manufactured. The company ended up giving some away to public health agencies.
MedImmune is trying to expand the label and is developing a version of FluMist that can be refrigerated.
Shares in MedImmune rose 12 cents to close at $24.07 on the Nasdaq Stock Market before the deal was announced. Wyeth fell 29 cents to close at $39.50 on the New York Stock Exchange.
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