Subject: MedImmune Insiders Reap Huge Gains
Date: Published: 12/11/91 (103 lines)
Source:  Wall Street Journal.  Copyright Dow Jones & Co. Inc. 

    OTC Focus:
    MedImmune Insiders Reap Huge Gains
    In Share Offering; Index Falls 0.21%
    ----
    By Anne Newman
    Staff Reporter of The Wall Street Journal

    NEW YORK -- Although over-the-counter stocks slipped,
 insiders at MedImmune Inc. reaped huge gains as the young
 biotechnology company sold 2.5 million additional shares at
 $43.50 each -- nearly five times its initial offering price
 of $9.25 just seven months ago.
    The Nasdaq Composite Index fell 1.12 to 534.23, a 0.21%
 loss, as declining stocks continued to outpace advancers,
 1,168 to 815.  Stocks dropping to new lows outnumbered those
 climbing to new highs, 89-61.  OTC volume rose to 157.6
 million shares from 155.4 million Monday.
    Biotech stocks have been on a comeback since collapsing
 nearly four weeks ago.  Their recovery helped insiders at
 MedImmune cash in at yesterday's stock sale.  MedImmune, which
 fell as low as 33 after last month's drop in biotech shares,
 was the day's sixth most active OTC issue.  The stock rose 1/4
 to 43 3/4 on volume of 1.3 million shares.
    Of the total stock sale, two million shares were offered
 by six insiders.  The largest holders were venture capital
 partners James H. Cavanaugh, former president of a
 pharmaceutical unit at SmithKline Beecham and of eye-care
 company Allergan International, and Harold R. Werner,
 formerly with a Johnson & Johnson development unit.  Since the
 insiders paid an average of $3.06 each for their original
 shares, yesterday's stock sale garnered them a combined
 profit of more than $80 million.  The remaining 500,000 shares
 were sold by the Gaithersburg, Md., company to help meet
 research, marketing and expansion costs.
    With 16.9 million common shares outstanding, MedImmune now
 has a total market value of $739.4 million.  Yet the company,
 which is less than four years old, reported its first profit
 this year.  In the nine months ended Sept. 30, MedImmune had
 net income of $1.6 million, or 11 cents a share, on revenue
 of $10.4 million, largely attributable to sales of CytoGram,
 a product that treats a disease associated with kidney
 transplants.
    MedImmune has been attracting investors because it's
 involved in research with Merck on products designed to
 neutralize the virus that causes acquired immune deficiency
 syndrome.  The company also is in the final phase of studies
 on a product to treat a certain type of respiratory pneumonia
 in children.
    Borland slumped after Soundview Financial Group analyst
 John C. Maxwell trimmed his rating on the stock to "hold"
 from "buy," in part because of its recent price gains, Dow
 Jones Professional Investor Report said.  The stock reached a
 high of 83 1/4 last week, climbing from a low this year of 27
 7/8.
    Novell jumped as it reached an agreement with
 Hewlett-Packard under which the companies will develop a
 version of Novell's Netware computer networking software that
 will run on Hewlett's reduced instruction-set computing
 systems.  Hewlett also agreed to distribute Novell's products
 under the pact.
    Novell, a leader in network software, reported net income
 of 34 cents a share for its fourth quarter, ended Oct. 26, up
 from 23 cents a year earlier.  Analysts had expected it to
 earn about 31 cents a share in the latest period, according
 to First Call, a unit of Thomson Financial Networks.
    A new computer networking company also gained on heavy
 volume.  Retix, which had its initial public offering
 yesterday, closed at 11 3/4 on volume of 3.3 million shares.
 The Santa Monica, Calif., company's issue totaled 3.4 million
 shares, of which 1.2 million were sold by existing
 shareholders.  The stock was sold a $9 a share.
    Sun Microsystems, which lost 1 7/8 Monday, climbed 3 to 24
 1/4.  In a conference call, the computer workstation
 manufacturer told analysts that its business has been strong,
 Dow Jones Professional Investor Report said.  A Nasdaq-leading
 5.9 million Sun Microsystems shares changed hands.
    Telco Systems lost 3 1/8 to 13 5/8.  While the company
 recorded first quarter net of 21 cents a share, up from 18
 cents in a year earlier and in line with expectations, it
 warned that revenue was lower than expected at one of its
 businesses.  In part because of the deferral of some customer
 orders, revenue from its T1 telephone network access products
 grew by only 5% in the quarter, compared with the 15% to 20%
 growth it had expected.
    Telco's chief financial officer, John Ruggiero, said that
 if this revenue trend continues, the company may be unable to
 meet analysts' estimates for its fiscal 1992 earnings.  The
 company, he said, is expected to earn about $1.20 a share
 next year.
    Vestar gained 1 1/2 to 18 1/2.  The company said a clinical
 study indicated that its DaunoXome drug was an "effective and
 well tolerated" treatment for Kaposi's sarcoma in cases
 involving patients with AIDS.  
    ---
    Dave Pettit contributed to this article.

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