MEDI buying Aviron for $1.5B

MedImmune (MEDI) said it will acquire AVIR for $1.5 billion in stock, net of AVIR's cash. MEDI said AVIR's vaccine technology is synergistic with its infectious disease and immunology platforms, and added that AVIR's FluMist intranasal influenza vaccine has the potential to be a $1 billion drug. MEDI expects to post $500 million and $1 billion in FluMist sales within 3 and 5 years of launch, respectively.

FluMist is under FDA review, and in August, the agency issued a complete response letter requesting additional information and clarification of clinical and manufacturing data. AVIR is targeting a response to the letter by year end, and MEDI, which markets its Synagis palivizumab for respiratory syncytial virus (RSV), said it expects to launch FluMist in 2002. ...