FDA Approval Of FluMist For Use In Young Children Boon For MedImmune

Implications: The FDA recently approved the expanded use of FluMist, the only nasal spray influenza vaccine, in children 2 to 5 years of age. Each year in the U.S up to 60 million Americans get the flu according to the CDC. The U.S. CDC recommends all children aged 6 to 59 months be vaccinated against the flu. FluMist uses a live, attenuated virus rather than an inactive virus.  A recent study indicates that the nasal spray may be more effective than the injection.

Analysis:

Last week, MedImmune (NASDAQ : AZN) received approval from the FDA for the administration of FluMist in children aged 2 to 5 years old.

In a pivotal study of over 4,000 children between the ages of 2 and 5 years old, there was a 54 percent reduction in cases of flu in children receiving FluMist compared to those receiving the traditional vaccine.

The flu is most prevalent in schoolage children. Children aged 2 to 17 years of age are twice as likely to get influenza as adults, including the elderly. Many parents are reluctant to get their children immunized due to their children's fear of needles. In addition, children less than 9 years of age receiving influenza vaccine for the first time need two doses at least 4 weeks apart.

This new indication should be a significant advancement in the effort to reduce the number of influenza cases in the United States. Look for sales of FluMist to increase substantially this year. The question is whether MedImmune is prepared to supply enough vaccine to meet the demand. The only drawback is the cost, since the nasal spray is more expensive than the traditional injection.