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For the fiscal year 2007, the company expects earnings and revenues below Street view. Further, the company reconfirmed its fiscal year 2009 forecast. Commenting on the outlook, David Mott, chief executive officer and president, stated that the years 2004 through 2006 marked a period of substantial investment in the company's business.

MedImmune is now poised to enter a new period of robust financial growth with revenues increasing at a compound annual rate in excess of 15% through 2009, margins expanding significantly, and earnings growing approximately ten-fold. For the fiscal year 2006, MedImmune continues to expect earnings per share to be in the range of $0.17 - $0.

22, excluding share-based compensation expense of about $32 million or $0.10 per share. On average, 14 analysts polled by First Call/Thomson Financial expect fiscal year 2006 earnings of $0.

19 per share, with expectations ranging from $0.13 to $0.26 per share.

The company further reconfirmed its full year 2006 revenue outlook of about $1.3 billion, which is in line with Wall Street analysts' consensus estimate. The company's initial guidance, which was given along with 2005 results, was earnings per share before expenses of $0.

40 - $0.45, and revenues of approximately $1.4 billion, a year-over-year growth of about 10%.

Earlier, MedImmune noted that the reduction in outlook is due to lower than expected sales of Synagis in the first half of 2006. In the fiscal year 2005, the company posted adjusted net earnings of $31 million or $0.13 per share, on revenues of $1.

2 billion. Rival, Bristol-Myers Squibb Co. ( | | | ), a New York City-based pharmaceutical giant, lifted its fiscal year 2006 earnings guidance while providing its third quarter results recently, on October 26.

The company now sees full year earnings per share from continuing operations, on a GAAP basis, of $0.97-$1.02 per share, up from earlier given outlook of no less than $0.

95. Analysts anticipate earnings of $1.04 per share for the full year.

However, the raised guidance is below the outlook issued by the company prior to shipping of generic Plavix. In its third quarter, the company had reported a decline in sales, due to lower sales of its main revenue driver, blood thinner drug, Plavix. In addition, MedImmune said it continues to anticipate that gross margins in 2006, as a percentage of product sales, would be about 73%, Research Development ( | | | ) expense would be about 38%, and selling, general and administrative expenses in 40%- 42% range.

MedImmune also expects tax rate for the full year to be 42% of pretax income, and net other income about 10% of product sales. Further, for the fiscal year 2007, the company sees earnings per share in the range of $0.90 - $0.

95, excluding share-based compensation expense of $31 - $33 million or $0.09 - $0.10 per share.

MedImmune anticipates that total revenue for 2007 would grow to approximately $1.5 billion. Analysts forecast fiscal year 2007 earnings of $0.

85 per share, on revenues of $1.46 billion. MedImmune also anticipates that gross margins, as a percentage of product sales, would be about 74% in 2007, while R D would be in the 28%-30% range, SG A about 35% of product sales.

Tax rate for 2007 is estimated to be about 36% of pretax income, and net other income to be about 3%- 4% of product sales. The company also reconfirmed its fiscal year 2009 outlook, expecting earnings per share to be about $2.00, which excludes share-based compensation expenses of $55 million - $60 million or $0.

16 - $0.18 per share. Total revenue for 2009 is projected to be about $2 billion.

MedImmune also anticipates gross margins in 2009, as a percentage of product sales, to be in the range of 76%- 78%, R D in the range of 27%- 29%, and SG A about 25%. Brokerage firm Friedman, Billings, Ramsey expects fiscal year 2006 earnings per share of $0.19, and full year 2007 earnings of $0.

67. For 2008-2010, the brokerage estimates earnings per share of $0.94, $1.

42, and $1.77, respectively. David Mott, commented, "Having completed a significant multi-year investment in every aspect of the business - from the commercial organization to operations to our robust pipeline - we are poised to return to a pattern of robust financial growth as we approach the middle of our five-year plan.

As an established leader in pediatric respiratory diseases, MedImmune expects continued growth from its largest currently marketed product, Synagis (palivizumab), and is ready to implement a first-rate launch of refrigerated FluMist (Influenza Virus Vaccine Live, Intranasal) in 2007 and of Numax in 2008, assuming timely approval by the U.S. Food Drug Administration ( | | | ).

" The company said it also expects royalties from its human papillomavirus vaccine technology to drive substantial growth over the next several years. On a divisional basis, the company noted that RSV franchise's worldwide sales are expected to grow by a compounded average rate of about 10% from 2006 to 2009, helped by currently marketed Synagis, the potential future market introduction of Numax, and several other RSV-targeted products in development. For the 2006-2007 RSV season, worldwide sales of Synagis are expected to grow by about 10%.

The company added that worldwide sales of Synagis in calendar year 2006, as earlier said, are expected to be approximately even with calendar year 2005, reflecting a stronger second half of 2006. MedImmune said it is advancing the largest pipeline in its history, with about 45 programs at various stages of development and commercialization in three key areas of therapeutic focus, such as infectious disease, cancer, and inflammatory disease. James Young, Ph.

D., president, research and development, said, "We continue to build on our core scientific strengths in antibodies and vaccines by incorporating cutting-edge technologies and implementing best practices to maximize the efficiency and quality of research and development efforts.Ultimately, our goal is to discover and develop innovative products that fulfill our mission of 'advancing science to improve human health' while delivering sustainable long-term growth for the company.

" MedImmune added that it continues to demonstrate its strengths in biological process development and manufacturing across multiple technologies and products. In a November 7 research note, Friedman, Billings, Ramsey upgraded MedImmune shares to 'Outperform' from 'Market Perform'. The brokerage also upped its price target on the stock to $40 from $28.

Analyst Jim Reddoch said the upgrade of MedImmune shares was based on valuation and on the Numax data and on the brokerage's increased sales expectations for Numax. The brokerage now reaches a 3-year CAGR of 38%, making MEDI undervalued with respect to its growth rate. In addition, the analyst views that better data over Synagis may give MEDI pricing power, which could drive further upside.

Further, the analyst believes that future is bright for RSV franchise. With RSV looking safe for the long-term, and the HPV vaccines likely to power bottom-line growth, the analyst believes MedImmune is becoming more of a growth story. MEDI is currently trading up $0.

522 or 1.58% to $33.552.