MedImmune hires Goldman to find buyer for company

By Jeffrey Goldfarb and Ben Hirschler

LONDON (Reuters) - Biotechnology company MedImmune Inc. MEDI.O has hired Goldman Sachs to explore a sale of the company, which industry analysts said could fetch $11 billion to $12 billion.

Confirming what sources had earlier told Reuters, the group said on Thursday it had decided to seek bids following indications of interest by big drugmakers and dissatisfaction over the stock price performance among some investors.

It added the process was well under way but there was no guarantee that a sale would be concluded.

One person familiar with the situation said a speedy disposal looked likely.

"I think a transaction will happen in the next four to five weeks," said the source, who requested anonymity because of the confidential nature of the process.

MedImmune has been the subject of takeover speculation for some time, with talk of a bid intensifying since billionaire investor Carl Icahn disclosed in February he owned 2.8 million shares of the company.

The stock had already risen 20 percent since then and gained as much as 14 percent in early trade on the Nasdaq on Wednesday to hit a five-year high of $43.18, valuing the business at just over $10 billion. Other biotech shares also rose on the news.

MedImmune, one of the larger independent biotech firms in the United States, is best known as the maker of the nasal spray flu vaccine FluMist, but it also has two other marketed products, Synagis for infectious respiratory disease and Ethyol for reducing chemotherapy side effects.

The company announced on Monday it expected first-quarter earnings to have tripled, driven by higher-than-expected sales of Synagis, which has had reimbursement problems in the past.

One person familiar with the situation said MedImmune should see good demand from bidders, since it is a relative rarity among biotech firms in already having commercial products.

That may make it attractive to a number of large drugmakers looking to bolster their portfolios.

David Katz, chief investment officer at Matrix Asset Advisors, a shareholder in MedImmune who has been pushing for the sale of the company, welcomed the move.

"It makes enormous sense in terms of maximizing shareholder value," he said.

"Goldman is expert in running strategic reviews ... The company should be sold for a healthy price, probably starting at $45," he added.

John Sonnier, an analyst with William Blair, estimated MedImmune was worth between $45 and $50 a share.