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|MedImmune, Inc. |(MEDI – NASDAQ) |$45.09 |

Note: All new or revised material since the last report is highlighted.

Reason for Report: MEDI exploring potential sale of the company; Prev. Ed.: March 29, 2007

Preliminary 1Q07 earnings announced

Recent Events

On April 12, 2007, MEDI announced its intention to explore a sale of the company.

On April 9, 2007, MEDI declared preliminary results for 1Q07.

On March 29, 2007, MEDI announced it has licensed reverse genetics technology to sanofi-aventis for use in Influenza vaccine production.

On March 23, 2007, MEDI announced it has expanded its Anti-Interferon-Alpha Program by initiating Phase I Trial of MEDI-545 in patients with psoriasis.

Overview

Based in Maryland, Medlmmune, Inc. (MEDI), a biotechnology company, is engaged in the development, manufacture, and commercialization of products primarily for the treatment of infectious diseases, inflammatory diseases, and cancer. Currently, MedImmune has four approved products in the market. Its leading product is Synagis, a monoclonal antibody developed for the prevention of serious lower respiratory tract disease caused by respiratory syncytial virus (RSV) in pediatric patients. Other products include: Ethyol (chemoprotectant), FluMist (nasal flu vaccine) and CytoGam (Cytomegalovirus antibody for prophylaxis gainst CMV). On December 18, 2006, MedImmune, Inc. completed its sale of CytoGam to ZLB Behring. MEDI is currently working on next-generation products to both Synagis and FluMist. MedImmune employs approximately 2,059 people. The company’s website is .

|Key Positive Arguments |Key Negative Arguments |

|MEDI believes Flumist is an $800M worldwide product. |MEDI is burdened with nearly $100M of development costs after WYE withdrew |

| |from the Flumist deal. |

|The company is working on a next-generation liquid Flumist product designated|The Flumist launch was disappointing. |

|CAIV-T, which it believes will enhance usability. | |

|The pipeline has at least 4-5 products in Phase I, II, or III trials. Many |Sales of chemoprotectant Ethyol are slowing based on some confusion regarding|

|brokerage firms believe MEDI’s pipeline is significantly undervalued. |reimbursement and the new Medicare reform laws. |

|Strong financials with $1.5B in cash. |Synagis sales are reaching high penetration levels in the US. The product |

| |will rely on international sales for future growth. |

Note: The company’s fiscal year coincides with the calendar year.

Revenue

According to the Zacks Digest report, total revenue in 4Q06 was $528.7 million, up 7.5% YoY as compared to $492 million in 4Q05. Total revenue in 2006 increased 2.6% YoY to $1276.8 million. For 2007, the company expects revenue growth derived primarily from Synagis, based on factors such as improved patient tracking, a strengthened relationship with Caremark for distribution, and an approximately 6% price increase. MedImmune’s guidance for total product sales in 2007 is $1.5 billion. This difference is primarily due to Synagis sales increases.

Synagis

Indication: Prevention of a serious lower respiratory tract disease caused by respiratory syncytial virus (RSV) in pediatric patients.

Stage of development: Mature, widely sold and distributed.

Importance: Synagis is the company’s lead product and the primary growth driver. The product was approved in 1998 for the prevention of respiratory syncytial virus (RSV) infection in infants.

Partners: MEDI renegotiated its co-promotion agreement with Abbott Labs (ABT). The company now owns 100% of the U.S. rights to Synagis. The company recently hired an additional 125 pediatric sales representatives, bringing the total up to 425, to better target pediatricians. Additionally, MEDI should save significantly on collaboration payments to Abbott Labs starting with the 2006/2007 season. Likewise, it will own 100% of the U.S. sales of Numax. The company will continue to collaborate on ex-U.S. sales with Abbott Labs. With Numax slated to be launched by late 2008, the RSV franchise should eclipse the $1.5 billion mark by the end of the decade.

Sales: According to the Zacks Digest report, total Synagis sales in 4Q06 were $457 million, up 4.1% YoY as compared to $439 million in 4Q05. Total Synagis sales in 2006 were $1065 million, up 0.2% YoY as compared to $1063 million in FY05.

In terms of the distribution channels, MEDI implemented a new strategy for Synagis that is focused on ensuring broader access. This strategy focuses on services, compliance with the prescribing dosing regimen and expanding the network to include a greater number of payor's preferred customers. MEDI believes about two-thirds of children born before or at the start of the season typically receive less than five doses on average for the season, and with its expanded sales organization, payor out-reach and new approach with distributors, MEDI can move the dose average closer to five. MEDI is also increasing its Phase 4 activities for Synagis to focus on the clinical value of Synagis.

During preliminary earnings announcement on April 9, 2007, the company stated that for 1Q07, it expects domestic and worldwide net sales growth of approximately 9% to 10% for Synagis over the same quarter in 2006. One firm (Goldman) is of the opinion that the preannounced Synagis sales and EPS are slightly better than expected and should remove investors’ concern that Synagis sales would be weak.

Safety issues: The most serious adverse reactions occurring with Synagis treatment are anaphylaxis and other acute hypersensitivity reactions. The adverse reactions most commonly observed among patients treated with Synagis, are upper respiratory tract infection, otitis media, fever, rhinitis, rash, diarrhea, cough, vomiting, gastroenteritis, and wheezing.

| |2006A |2007E |2008E |2009E |Est. Growth |

Ethyol

Indication: Ethyol is a selective cytoprotective agent used to reduce toxicities associated with certain cancer chemotherapy and radiotherapy. Specifically, Ethyol is an intravenous organic thiophosphate cytoprotective agent indicated for the reduction of cumulative renal toxicity associated with repeated administration of cisplatin in patients with advanced ovarian cancer or non-small cell lung cancer (NSCLC).

Stage of development: Mature

Sales: According to the Zacks Digest report, total Ethyol sales in 4Q06 were $20 million, down 20.4% YoY as compared to $25 million in 4Q05. Total Ethyol sales in 2006 were $87 million, down 9% YoY as compared to $96 million in FY05.

Regulatory issues: The company is conducting a Phase II study of subcutaneously administered Ethyol for the treatment of esophagitis in non-small cell lung cancer patients. 127 patients have been enrolled to date and an analysis is being conducted in the first 100 patients. If the data analysis indicates positive trends with no safety issues, the company plans to expand patient enrollment to a total of about 300 patients. In the meantime, the company announced it has discontinued a Phase I/II study of Ethyol in the treatment of mucositis in acute myelogenous leukemia (AML) patients undergoing chemotherapy treatment due to the lack of efficacy observed.

Patents/Generics: On January 10, 2007, MEDI announced the U.S. District Court for the District of Maryland has rejected Sun Pharmaceutical Industries, Ltd.'s motion to end the patent infringement action regarding Sun's proposed generic amifostine product. Sun Pharmaceuticals had filed an ANDA for a generic version of Ethyol in April 2004. Ethyol’s patent is protected at least until 2012, which will prevent generic alternatives to hit the market in the near-to-medium term.

| |2006A |2007E |2008E |2009E |Est. Growth |

Flumist

Indication: Nasal spray for Influenza.

Stage of development: Mature

Importance: The company believes the product has $500M US and $300M ex-US peak sales potential. Yet, FluMist will probably remain unprofitable through 2007. Once approved, next-generation CAIV-T is expected to Phase out Flumist usage. On January 8, 2007, MEDI announced the FDA has approved the company's new refrigerated formulation of FluMist (Influenza Virus Vaccine Live, Intranasal), CAIV-T, for use in helping to prevent influenza in healthy children and adults from 5 years to 49 years of age. CAIV-T will be available in the market during 2007 2008 influenza season. MedImmune has already announced plans to price CAIV-T in the $16 to $20 range initially, and based on expected manufacturing costs, anticipates that full product breakeven will occur in the 4 million to 5 million dose range. The company believes sales in excess of $400 million are achievable in a four to five year timeframe.

Sales: According to the Zacks Digest report, Flumist posted sales of $18 million in 4Q06, up 125.2% YoY as compared to $8 million in 4Q05. Total Flumist sales in 2006 were $35 million, up 70% YoY as compared to $21 million in FY05.

Regulatory issues: The company had filed a separate sBLA for the use of CAIV-T in children without prior history of wheezing and belonging to the age group of 1-5 years. The PDUFA date for the label expansion sBLA is May 28, 2007. One firm (CIBC) is of the opinion that an expanded label would significantly increase the market opportunity for FluMist.

New Data: On October 13, 2006, MedImmune announced results of a study that demonstrated higher influenza serum antibody responses in children receiving its next-generation, investigational intranasal influenza vaccine, CAIV-T (cold adapted influenza vaccine, trivalent), than in children who received the traditional injectable trivalent inactivated flu vaccine (TIV). In this study involving 52 children between six and 35 months of age, CAIV-T prompted significantly higher conversion rates. CAIV-T also demonstrated significantly more cross-reactivity to the mismatched strain that predominantly circulated during the 2004-2005 season. The results were presented at the 44th Annual Meeting of the Infectious Diseases Society of America (IDSA).

According to pivotal Phase 3 research published in the February 15, 2007 issue of The New England Journal of Medicine, children under 5 years of age immunized with FluMist reported 55% fewer cases of influenza, compared to children who received the flu shot. In the study, FluMist also demonstrated protection against influenza strains that were both matched and mismatched to the vaccine.

Competitors: One firm (Zacks Investment research) expects new competition in the Flu market, given the scare of Avian Flu. The firm also expects GlaxoSmithKline to become a major player in the next few years.

Partners: MEDI teamed up with global vaccine and healthcare product distributor Henry Schein (HSIC) for distribution. HSIC will focus on primary care physicians, as well as handle all product-related inquires and returns; whereas MEDI will focus on manufacturing and development, as well as expand existing relationships with pediatricians and pharmacies.

| |2006A |2007E |2008E |2009E |Est. Growth |

Drugs in the Pipeline

Human Papillomavirus (HPV) Vaccine

Indication: Cervical cancer

Stage of development: Phase II/III

Importance: Human Papillomavirus (HPV) vaccine (also called Cervarix) has shown excellent success in a Phase II trial in preventing cervical cancer.

Partners: GSK will market the product and pay an estimated 15% royalty to MEDI. In 2005, MedImmune announced an amendment to its 1997 agreement with GlaxoSmithKline for MedImmune’s developmental HPV vaccine. MedImmune will now receive royalty and milestone payments from both Merck and GSK on future development and sales of the vaccine, rather than just from GSK. The terms of the deal have not been disclosed. Medimmune has stated the net present value of the revised agreement is higher than the previous agreement.

Regulatory issues: Another significant contributor to the margin expansion at MedImmune will be royalties on the HPV vaccine products at Merck and GlaxoSmithKline. Glaxo is in late-stage trials with MEDI’s out-licensed Cervarix, a vaccine candidate for ovarian (Phase II) and cervical cancer (Phase III) protection. Glaxo has filed for approval of Cervarix in Europe. Merck’s candidate, Gardasil was approved by FDA in June 2006 and approved in EU in September 2006. MedImmune is entitled to mid-single-digit royalties on both sub-licensed HPV candidates. Merck’s Gardasil candidate may offer broader-based use than Cervarix, although Cervarix may offer greater protection. HPV royalties could make a meaningful positive contribution to MedImmune’s top-line starting in 2007. These royalties will carry 100% gross margin.

On November 9, 2006, MEDI announced it has filed an investigational new drug application (IND) with the FDA to begin human clinical testing of a cell culture-based seasonal influenza vaccine using its proprietary live, attenuated, needle-free influenza vaccine technology. The filing represents a milestone under the terms of a five-year, $170-million contract with the U.S. Department of Health and Human Services (HHS).

MedImmune's currently marketed influenza vaccine, FluMist, is now made using chicken eggs, as are all other U.S.-approved influenza vaccines. Vaccine manufacturers have been using eggs for production for decades. However, using chicken eggs as the production medium limits scalability in manufacturing and increases the potential risk of manufacturing delays or supply shortages. A severe outbreak of avian influenza could kill the flocks used to produce the eggs that would be used for vaccine production. To address these concerns, MedImmune will be applying state-of-the-art cell culture-based manufacturing methods to produce influenza vaccines without the need for chicken eggs. The success of this technology will reduce production times and substantially increase MedImmune's U.S.-based manufacturing capacity to provide influenza vaccine to the U.S. population. After adding the cell culture-based production capability for its influenza vaccine, MedImmune expects to have a production capacity of 300 million monovalent bulk doses of a pandemic vaccine annually by 2012.

Vitaxin (Abegrin)

Indication: Vitaxin (monoclonal antibody) has possible treatment potential in multiple areas, including autoimmune and inflammatory disease.

Stage of development: Phase II

Importance: The product has both anti-angiogenic and pro-apoptotic properties, which give MEDI significant hope for the future.

Regulatory issues: The company had begun four Phase II trials on Vitaxin. The four trials are: 1) malignant melanoma, 2) rheumatoid arthritis, 3) psoriasis, and 4) prostate cancer.

Vitaxin for melanoma – MedImmune has decided not to pursue a Phase III study in metastatic melanoma because the 24-month Phase II data of Vitaxin in metastatic melanoma indicated a 50% drop in the potential efficacy benefit in survival noted in the first 12 months.

Vitaxin for prostate cancer – The Phase II prostate cancer study is an open-label, three-arm study that has enrolled 126 patients with androgen-independent prostate cancer that has metastasized to bone. The primary objective of the study will be safety and activity. Secondary objectives include anti-bone resorption activity, median survival, pain, and biochemical markers of bone metabolism. With enrollment in this study completed in April 2005, MedImmune expects to present top-line, 18-month survival data by December. If positive, the company would convene an advisory board to determine whether Phase III studies should be pursued. MedImmune may wait until 24-month survival data become available in June 2007 before making a final decision.

NuMax

Indication: Respiratory Syncytial Virus disease (RSV)

Stage of development: Phase III

Importance: NuMax is a second-generation Synagis product that the company believes has roughly 20-50x the potency of the original product. MEDI is developing NuMax for RSV, and if successful, it could accelerate the core franchise. MEDI will have 100% rights to NuMax, which should provide an added profitability boost.

Partners: MEDI reported it has finalized the ex-US distribution agreement with Abbott. MEDI will have ex-US co-promotion rights, thereby potentially enabling MEDI to capture a larger portion of worldwide revenue from NuMax versus Synagis. Additionally, MEDI will be able to eliminate the current co-promotion payment to the Ross division of Abbott on all US sales of Synagis, which is estimated to be 20% of sales by brokerage firms. However, this will be partially offset when MEDI will have to increase its sales force to account for the loss of the Ross sales force, probably in 2008.

Regulatory issues: MedImmune provided an overview of plans for Numax, intended to replace Synagis to treat infants at high-risk of contracting RSV. The company currently plans to file a BLA for Numax in 2H07. Pending approval, MedImmune expects to launch the product for the 2008 RSV season. The company will position Numax as a more potent alternative to Synagis, and plans to use recent Phase III data to help establish this message. Improved secondary outcomes such as decreased hospitalization rates, will also become part of the positioning strategy. By 2Q07, MedImmune plans to begin market research identifying the drug’s value proposition, and the company expects to have a plan in place for the transition to Numax from Synagis.

Enrollment in the Phase III trial in Native American infants has reached 1,800, and will likely take several more seasons to enroll the targeted 3,000 patients. The trial is designed to evaluate the safety and efficacy of Numax in reducing RSV hospitalizations and examine the long-term impact of Numax on rates of wheezing and asthma through age five. The company does not expect top-line data on the prevention of RSV-related hospitalizations for several years and data on the prevention of asthma and wheezing are 3-5 years away. MedImmune completed dosing of a Phase II trial to evaluate the safety of treating with Numax and Synagis in the same patient in the same RSV season.

There are a total of six ongoing Phase III studies related to Numax, evaluating a total of 7,500 infants. One of those studies is a placebo-controlled trial in full-term Native American infants. That study enrolled 327 infants during the 2004/2005 RSV season, and 788 infants this season. The company expects to continue enrollment at least over one more season. An additional Phase III study in 620 infants with congenital heart defects has completed enrollment. Other studies include a 136-patient Phase II study in the Southern Hemisphere looking at a second season of dosing and a 240-patient Phase II study looking at using Numax and Synagis interchangeably (i.e., a mix of the two drugs for a patient; not combination use). Both studies have completed dosing. MedImmune is also planning to initiate an additional study testing Numax in children who already have an RSV infection. MedImmune is targeting a launch for the 2008/2009 RSV season.

New Data: MedImmune released top-line data from the Phase III Numax registration study comparing the antibody to Synagis. The trial met the primary endpoint of non-inferiority by reducing the incidence of hospitalizations caused by RSV (respiratory syncytial virus) in infants at high-risk for RSV by 26% when compared to Synagis. These results were expected given the non-inferiority trial design and the mechanism of action for Numax. The top-line data indicate the primary endpoint did not achieve superiority to Synagis in regards to the incidence of hospitalizations caused by RSV. On MedImmune’s third quarter earnings conference call; the company suggested it was optimistic that the trial design and over enrollment in the study would allow the data to demonstrate superiority of Numax to Synagis in this primary endpoint of RSV-associated hospitalizations, which could have facilitated a potential superiority claim on a product label by the FDA. The results did demonstrate superiority of Numax over Synagis in a secondary endpoint of reducing the incidence of RSV-specific medically attended outpatient lower respiratory infections by approximately 52%. The lack of superiority demonstration in the primary endpoint may preclude a label designating superiority, but this is a minor issue given Synagis and Numax (if approved) are the only products marketed for this indication. Another firm (Thomas Weisel) believes the data justifies the amended Abbott agreement that transferred full U.S. promotion rights to MedImmune, and ensures Numax will reach the market and replace Synagis for the prevention of RSV.

Other pipeline products

RSV/PIV-3 Combination Vaccine: On April 15, 2005, the company announced it began dosing healthy adult volunteers in a Phase I study for a vaccine candidate designed to treat RSV and parainfluenza virus type 3 (PIV-3). Preclinical data has shown this combination vaccine caused a protective immune response to RSV and PIV-3, which are the two leading causes of pediatric respiratory disease. MedImmune initiated a Phase I study for this vaccine to assess the safety, tolerability and immunogenicity of the vaccine in healthy adults who have had multiple years of exposure to wild-type RSV and PIV-3. This combination vaccine is designed to provide ease of administration and help reduce RSV/PIV-3-associated illnesses and hospitalizations. RSV is the most common cause of lower respiratory tract infections in infants and children worldwide, typically occurring during the fall and winter months. There are approximately 125,000 RSV-associated hospitalizations each year in the US. Lower respiratory tract disease due to PIV-3 is responsible for about 50,000 hospitalizations annually in the US, with approximately half of those in infants less than one year old.

In collaboration with the NIH, MedImmune is developing an avian flu vaccine using the company’s reverse genetics technology. Phase I/II trials are ongoing. In 4Q05, the company presented preliminary data on its H9N2 vaccine to the World Health Organization. A Phase I study for the H5N1 influenza virus vaccine is underway.

Anti IL-9 (MEDI-528) for asthma – In October 2006, MedImmune initiated a Phase 2a study of MEDI-528 in allergic asthma. Approximately 40 patients will be given one dose of MEDI-528 at 9mg/kg IV. Data from the trial are expected in 2H2007. The primary endpoint is inhibition of late asthmatic response. Abstracts on the product may also be available at the American Thoracic Society meeting in May 2007. Additional Phase 2 trials on both the IV and subcutaneous formulations in asthma are expected to begin in 2007.

MEDI-545 for lupus and autoimmune disorders – An IND was filed for MEDI-545, a human monoclonal antibody against interferon alpha for lupus and other autoimmune disorders. On April 13, 2006, MEDI announced it has begun dosing lupus patients in a Phase I clinical trial to evaluate the safety and tolerability of MEDI-545. The company will report on lupus trials at International Lupus Consortium in Shanghai, China to be held on May 24-26, 2007. On March 23, 2007, MEDI announced it has initiated a Phase I trial with MEDI-545, in patients with psoriasis. The trial is designed to evaluate safety and tolerability, and will be conducted at three sites in North America. Patients will be dosed once, and subsequently evaluated for a period of 126 days, including blood and skin analysis at regular intervals. MEDI has also filed an application with the FDA for MEDI-545 to be granted orphan drug status in a third indication, idiopathic inflammatory myositis.

BSYX-A110 anti-staphylococcal antibody – In August 2005, MEDI licensed worldwide rights to BSYX-A110 and other anti-staphylococcal antibodies from GlaxoSmithKline. BSY-A110 is a monoclonal antibody for the prevention of staphylococcal infections in premature infants. This is a leading cause of bloodstream infections among infants in the neonatal intensive care unit (NICU). Data acquired from Phase I and II clinical studies conducted to date with BSYX-A110, suggest the antibody is well-tolerated in adults and infants. Data are currently being analyzed from a Phase II double-blind, placebo-controlled safety/pharmacokinetic study in infants, and an epidemiological study of the incidence of bloodstream infections in premature infants.

On August 21, 2006, MEDI and Micromet, Inc. announced MedImmune has filed an investigational new drug application (IND) with the FDA for MT103 (also known as MEDI-538) for the treatment of patients with B-cell-derived non-Hodgkins lymphoma (NHL) not eligible for curative therapy. MT103 is a recombinant single-chain bispecific T-cell engager, or BiTE(R), molecule. It targets the CD19 antigen, which is uniquely expressed on B cells. A Phase 1 trial in Europe is ongoing and additional Phase 1 studies in B-cell lymphoma and chronic lymphocytic leukemia have been planned for the U.S. in 2007. In the planned Phase I open-label, single-arm, dose escalation trial in the U.S., investigators will assess the safety, tolerability and anti-tumor activity of continuous intravenous (IV) infusion of MT103 in patients with B-cell derived NHL, who have not responded to or have become refractory to previous therapies. Other endpoints include MT103's pharmacokinetics, pharmacodynamics, and immunogenicity as well as exploration of the molecule's mechanism of action. Doses will be given for a four-week period, with an option for an additional four weeks of therapy if disease improvement or stabilization is observed.

MedImmune has announced the completion of dosing in a Phase I dose-escalating trial of MEDI-534, an intranasally-delivered vaccine against RSV and parainfluenza virus-3 (PIV-3). Previously, MedImmune completed a similar Phase I dose-escalating trial of MEDI-534 in 120 healthy adults. The results demonstrated MEDI-534 had an acceptable safety profile.

On November 7, 2006, Infinity Pharmaceuticals, Inc. and MedImmune announced preliminary results from an open-label Phase I clinical study of IPI-504 in patients with Gleevec-resistant metastatic gastrointestinal stromal tumors (GIST). IPI-504, Infinity's lead oncology drug candidate, is a proprietary small molecule inhibitor of Heat Shock Protein 90 (Hsp90) that is being jointly developed by Infinity and MedImmune.

This open-label, dose-escalation Phase I trial of IPI-504 is being conducted at the Dana-Farber Cancer Institute in Boston, Mass. To date, 20 GIST patients have received IPI-504 at dose levels ranging from 90 to 400 mg/m2. IPI-504 is administered to patients on days 1, 4, 8, and 11, followed by 10 days off treatment in a 21-day cycle. Patients included in the study were heavily pre-treated and nearly all had failed prior therapy with Sutent as well as Gleevec, two approved therapies for the treatment of GIST.

On February 14, 2007, Infinity Pharmaceuticals and MEDI announced the initiation of a Phase I/II clinical trial of IPI-504. In this study, investigators will evaluate IPI-504 in patients with advanced non-small cell lung cancer (NSCLC). This open-label Phase I/II clinical trial of IPI-504 is being conducted at the Massachusetts General Hospital (MGH) and the Dana-Farber Cancer Institute (DFCI) in Boston, Mass.

On December 18, 2006, MEDI announced it has completed its sale of CytoGam to ZLB Behring. As specified in the agreement executed on November 8, 2006, ZLB Behring has made a one-time upfront payment of $50 million to MedImmune, plus equipment and inventory payments, for full worldwide rights to CytoGam. Further, an additional $70 million may be paid to MedImmune by ZLB Behring upon achievement of certain cumulative net sales milestones.

On December 19, 2006, MedImmune, Inc. and BioWa, Inc. announced they have entered into a licensing and collaboration agreement to develop and commercialize new inflammatory disease therapies targeting the interleukin-5 (IL-5) receptor. Initially, the companies will focus on developing BIW-8405, a monoclonal antibody (MAb) currently in Phase 1 clinical studies in patients with asthma. According to the terms of the agreement, BioWa will receive an undisclosed upfront payment, milestone payments and royalties on any future marketed products. BioWa will have exclusive marketing rights in Japan and certain countries in Asia for potential products developed as a result of the agreement. MedImmune will have exclusive marketing rights to these products for the United States, Europe and all other countries.

On December 20, 2006, MedImmune announced it has licensed its proprietary reverse genetics intellectual property to CSL Limited (CSL) of Australia to support the development of new human seasonal and pandemic influenza vaccines. Reverse genetics is a method by which viruses such as influenza, can be generated entirely from segments of DNA. MedImmune will receive an upfront payment, and has the potential to receive royalties on any vaccine stockpiles or other product sales using the reverse genetics technology.

On December 28, 2006, MEDI announced it intends to develop a monoclonal antibody (MAb) targeting pathways within the CD28 receptor family for treatment of certain inflammatory diseases, under a recently signed license agreement with Japan Tobacco, Inc. (JT). Under the terms of the agreement, JT will receive an undisclosed upfront payment, milestone payments and royalties on any future marketed products, and will also have exclusive development and marketing rights for the current lead antibody in Japan. MedImmune, however, will have exclusive development and marketing rights to this antibody for the rest of world and certain rights worldwide, for other antibodies developed as a result of the agreement

On March 29, 2007, MEDI announced it has licensed its proprietary reverse genetics intellectual property to sanofi pasteur, the vaccines business of the sanofi-aventis Group, to support the development and construction of new vaccine strains to produce human seasonal, pre-pandemic and pandemic influenza vaccines. Reverse genetics is a method by which viruses such as influenza, can be generated entirely from segments of DNA. MEDI will receive an upfront payment, and also royalties on certain vaccine stockpiles or sales of other influenza products developed using the reverse genetics technology.

| ($ in millions) |2006A |1Q07E |2Q07E |3Q07E |4Q07E |2007E |2008E |

|Operating |-0.7% |33.3%↑ |-95.7%↑ |-23.2%↑ |34.9%↓ |17.3%↓ |24.2%↑ |

|Net |5.0% |23.9%↑ |-49.5%↑ |-9.3%↑ |24.3%↑ |14.3%↑ |18.2%↑ |

According to the Zacks Digest report, R&D expenses in 4Q06 were $102.8 million, down 12% YoY as compared to $116.8 million in 4Q05. The company attributed the decrease in R&D expenses to lower clinical trial expense associated with the completion of Phase III trials for Numax and refrigerated FluMist. Including the impact of share-based compensation, R&D expenses in 4Q06 were $105 million. R&D expense in 2006 was $441.6 million, up 15.4% YoY as compared to $382.6 million in FY05. The company indicated the increase in 2006 R&D expense was primarily due to greater expense associated with collaborations and licensing arrangements. Including share-based compensation, R&D expenses in 2006 were $449 million.

According to the Zacks Digest report, SG&A expenses in 4Q06 were $154.4 million, down 22.4% YoY as compared to $198.9 million in 4Q05. The company indicated the primary reason for the decrease was the absence of co- promotion expense to Abbott (which had been $81 million in 4Q05), but the decrease on SG&A expense was partially offset by increased personnel costs and higher legal and other professional services fees. Including share-based compensation expense, SG&A expenses were $159 million in 4Q06. SG&A expense in 2006 were $526.4 million, up 5.6 %YoY as compared to $498.4 million in FY05. The company stated the increase was primarily due to increased amortization expense associated with the 2005 reacquisition of full promotion rights to Synagis in the US, the expansion of MedImmune's commercial organization in the first half of 2006, and higher legal and other professional services fees. However, the increase was partially offset by the reduction in co-promotion expense to Abbott Laboratories, which totaled $95 million in 2006. Including share-based compensation, SG&A expense in 2006 was $541 million.

Effective tax rate in 2006, excluding the impact of share- based compensation expense, was 31%, down 1000 bps as compared to 41% in 2005. The decrease in effective tax rate resulted primarily from higher pre-tax income and the release of valuation allowances associated with the utilization of tax credit carry forwards used to offset higher taxable income. Including the impact of share-based compensation, effective tax rate in 2006 was 35%.

The company has provided the following guidance for 2007:

• Gross margin will be about 74% of the product sales.

• R&D expenses will be in the range of 28 to 30% of the product sales

• SG&A expense will be about 35% of the product sales

The company expects in 2007, its tax rate will be approximately 36% of pretax income.

Earnings per Share

According to the Zacks Digest report, pro forma EPS in 4Q06 was $0.60, up 651.4% YoY as compared to $0.08 in 4Q05. Pro forma EPS in 2006 was $0.25, up 95% YoY as compared to $0.13 in FY05. The company reported net earnings of $155 million, or $0.64 per diluted share (excluding share-based compensation) for 4Q06. For full year 2006, the company reported net earnings of $75 million, or $0.30 per diluted share, excluding share-based compensation expense.

According to the Zacks Digest report and the company, GAAP EPS in 4Q06 was $0.50, up 655.6% YoY as compared to ($0.09) in 4Q05. GAAP EPS in 2006 was $0.20, up 385.7% YoY as compared to ($0.07) in FY05.

|EPS |2006A |1Q07E |2Q07E |3Q07E |4Q07E |2007E |2008E |

|Digest Low |$0.09 |$0.40↑ |($0.28)↑ |($0.18)↑ |$0.44 |$0.60↑ |$0.88 |

|Digest Avg. |$0.25 |$0.54↑ |($0.21)↑ |($0.08) |$0.60 |$0.85↑ |$1.20↓ |

|Company Guidance | | | | | |$0.90-$0.95 | |

During the 4Q06 earnings call, the company reiterated its guidance for 2007 issued on December 6, 2006. MedImmune plans to increase its revenue to approximately $2 billion and EPS to $2.00 in 2009, excluding share-based compensation expense. The company expects 2007 EPS to be in the range of $0.90-$0.95. This excludes options expenses, which the company estimates will be in the range of $31 million to $33 million, which translates to an effect to EPS of $0.09 to $0.10 per diluted share. In addition, the company reiterated its long-term financial goals, which include 2009 EPS guidance of approximately of $2.00 based on revenues guidance of $2.0 billion. The bottom-line guidance is encouraging from the long term perspective, but commercial execution on top-line drivers Synagis/Numax and a Flumist/CAIV-T, will be critical to returns.

On April 9, 2007, the company announced that it anticipates its 1Q07 diluted earnings per share, excluding share-based compensation expense, to be in the range of $0.62 to $0.67, versus $0.23 in diluted EPS in 1Q06, excluding share-based compensation. The company stated that the increase in expected EPS is due to an estimated 11% to 12% increase in total revenues and 100% increase net income margin versus 1Q06.

Long-Term Growth

The average LTG rate was roughly 28% (↓ from the previous update). Many brokerage firms, however, have taken a more conservative stance toward modeling MEDI’s 3-5 year growth, based on the Flumist concerns. A lack of visibility is clearly hampering investor perception. Flumist is a significant near-term drag on MEDI.

Beyond Flumist, MEDI is working on a next-generation Synagis product called NuMax, which the company believes will re-accelerate growth. NuMax is a strong efficacy, higher-margin product. The company also has some promising mid-stage development candidates with Vitaxin and the HPV program. One brokerage firm (Lehman) continues to believe MEDI's long-term earnings growth is entirely reliant on the launch of NuMax in the 2008/09 RSV season. However, no new products are likely to reach the market in the next two years at least. Until then, there might be some label expansions and new formulations of existing products like the liquid version of Synagis.

With the company expanding its distribution network and sales force coupled with the implementation of special programs to improve patient compliance, key market metrics, including the number of patients referred and identified, are tracking ahead of historical data from the same period in the last two seasons. One firm (Bernstein) continues to believe management and the Board at MedImmune should actively consider the possibility of sale of the company to a major pharmaceutical buyer with capital, expertise and infrastructure, to more effectively manage and commercialize the product portfolio.

MedImmune highlighted on its Analyst Day, its long-term goal (2009) is to advance 15 product candidates into the clinic, bringing the company’s product pipeline portfolio to 45 programs.

Target Price/Valuation

MEDI should earn $0.86 of EPS in 2007, according to the digest average. Therefore, at $45.09, the current PE is a steep 52.7X. Based on a 28% LTG rate, MEDI’s PEG is 1.88X. The digest average target price is $39.06(↑ from previous update). Most of the firms in the Digest group have used forward earnings estimate and DCF methodology to derive the target price.

Of the fifteen firms currently reporting on the stock, four have rated the stock positive, ten firms have assigned neutral ratings to the stock, and one firm (J. P. Morgan) has rated the stock negative.

|Rating Distribution |  |

|Positive |27%↓ |

|Neutral |67%↑ |

|Negative |6% |

|Avg. Target Price |$39.06↑ |

One firm (Prudential) believes that if the company is not acquired soon, the stock price might fall after the short-term spike following the announcement that the company is willing to be sold. One firm (Friedman, Billings) has down-graded the stock from Outperform to Market perform because it feels that the current appreciation in the stock price on takeover speculation has left the stock fairly valued.

Capital Structure/Solvency/Cash Flow/Governance/Other

On April 12, 2007, MEDI announced that the company’s board of directors has authorized management to evaluate whether third parties would have an interest in acquiring the company at a price and on terms that would represent a better value for its stockholders than having the company continue to execute its business plan on a stand-alone basis. To assist in this process, which is well under way, the company has retained the services of Goldman, Sachs & Co. and Dewey Ballantine LLP. One firm (Prudential) is of the opinion that companies like Merck, GSK and to a less degree, Wyeth could benefit from buying MedImmune because these companies would gain significant revenue (approximately $1.5 billion in ’07 and $2 billion by ’09) and positive EPS provided the excessive R&D spending be cut. Each company could also find synergy in MedImmune because of MedImmune’s presence in pediatric care and vaccine.

On April 2, 2007, MEDI announced that Robert H. Hotz has been appointed to its board of directors.

On February 20, 2007, MEDI announced it has added two senior leaders to its commercial management organization. The new executives appointed are Jamie Harrell, Vice President, infectious disease marketing, and Mark Stanton, Vice President, managed markets.

MedImmune expects its Frederick manufacturing center, which involves a $250 million expansion of the company’s facilities, will go online in 2010. Following completion, the new center will have the capacity to produce up to 5 million 100mg vials of antibodies, compared to the plant’s current 1 million vial capacity. The company is also planning to develop cell-culture based vaccines, and will have an annual capacity to produce up to 560 million doses by 2011. Due to this productivity, MedImmune expects to be at the forefront of efforts to develop pandemic vaccines. Operational efficiencies have also been improved in the existing influenza vaccine manufacturing processes. MedImmune announced it had reduced COGS on FluMist production by approximately 32%, and head count by 94.

Potentially Severe Problems

There are none other than those discussed in other sections of this report.

Upcoming Events

|Date |Event |Comments |

|May 2007 |PDUFA date (For pediatric label expansion). |For Influenza vaccine. |

Individual Analyst Opinions

POSITIVE RATINGS

MorganStanley – Overweight – ($40 – target price) – April 12, 2007. The firm has maintained the Overweight rating, but increased the target price from $39 to $40. Investment Summary: the firm believes the company makes strategic sense as a prospective acquisition target for several pharmaceutical companies because the company has stable top-line for the foreseeable future with the potential for at least modest growth, a rapidly accelerating bottom line, an early, but evolving and diverse development pipeline, and an opportunity for significant cost synergies.

William Blair – Outperform – April 12, 2007. The firm has maintained the Outperform rating on the stock. Investment Summary: The firm continues to view MedImmune as a favorable risk/reward investment.

NEUTRAL RATINGS

Leerink Swann – Market Perform – February 8, 2007. The firm has maintained the Market perform rating on the stock. Investment Summary: The firm continues to be cautious on MEDI shares given near-term execution challenges for both Synagis and CAIV-T, as it expects it will take some time before newly implemented initiatives begin to drive sales growth.

Zacks Investment Research – Hold – April 11, 2007. The firm has maintained the Hold rating on the stock. Investment Summary: The firm expects Numax and CAIV-T to deliver solid growth in 2007 and 2008.

Bear Stearns – Peer Perform – April 13, 2007. The firm has maintained the Peer perform rating on the stock. Investment Summary: In light of MEDI's announcement that it is for ready for sale the firm believes an all-cash deal would be accretive for virtually any company as long as significant cost synergies are realized. However, a stock deal would very likely be dilutive.

Bernstein – Market perform ($36 – target price) – April 4, 2007. The firm has downgraded the stock from Outperform to Market perform, but maintained the target price of $36. Investment Summary: The firm is of the opinion that the company’s bottom line growth is likely to be much higher than that of most peer companies; however, the top line growth potential of the company’s business is now limited. The firm also feels that Investors in MEDI may also benefit from an acquisition of the company by one of the major global pharmaceutical companies.

Cowen – Neutral – February 7, 2007. The firm has maintained the Neutral rating on the stock. Investment Summary: The firm believes the share is fairly valued at the current levels.

Jefferies – Hold – ($43 – target price) – April 12, 2007. The firm has maintained the Hold rating, but increased the target from $32 to $43 based on MEDI’s intention to explore a sale of the company. Investment Summary: The firm is of the opinion that despite substantially high R&D spending, MEDI lacks late-stage new products that could provide strong revenue growth for the next several years.

Thomas Weisel – Marketweight – April 9, 2007. The firm has maintained the Marketweight rating on the stock. Investment Summary: The firm is of the opinion that there is a lack of significant drivers for MEDI in 2007; however, the firm believes that continued industry speculation of MEDI as a takeover target has driven up its valuation and enabled the stock to trade at a premium to large-cap biotech.

NEGATIVE RATINGS

J.P. Morgan – Underweight – April 9, 2007. The firm has maintained the Underweight rating on the stock. Investment Summary: The firm is of the opinion that MEDI’s share would continue to trade at a discount to its peer group because of lack of significant news flows in the medium term and lower then average revenue growth rate.

CEASED COVERAGE

Citigroup – December 18, 2006. The firm has discontinued coverage.

Appendix-A

Brokerage firms’ sales estimates by product, EPS forecasts, and a consensus model can be found in the file MEDI.xls.

Research Associate: Abhishek Mishra

Reviewed by:

Copy Editor: Sudeshna S.

Content Ed.: Shilpa Chandak

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April 17, 2007

Research Associate: Abhishek Mishra, M.Fin.

Editor: Shilpa Chandak, CA.

Sr. Ed.: Ian Madsen, CFA; imadsen@; 1-800-767-3771, x9417

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