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Aviron slides on FDA delay
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July 30, 2001: 12:53 p.m. ET
Agency requests more information on flu vaccine; company sees year delay
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NEW YORK (CNNfn) - Aviron shares sank Monday after a U.S. Food and Drug Association panel voted Friday not to recommend the company's nasal influenza vaccine on the grounds of insufficient safety data.
Shares of the Mountain View, Calif., drug maker dropped 26.26 percent after reaching a 52-week low of $26.75 earlier in Monday's trading session. Aviron (AVIR: down $12.38 to $28.70, Research, Estimates) shares have a 52-week high of $70.60.
The FDA vaccination panel voted 10 to 4 in favor of rejecting Aviron's FluMist spray, saying it would re-evaluate the product after the company submitted a complete analysis of the safety data supporting the license application.
Sharon Seiler with Punk Zeilgel and Co. says the delay will not permanently damage Aviron, despite Monday's selloff. "Most people are looking at the vote, not at what the FDA said. Six of the 10 panelists said the safety data is not sufficient, but with more data, they think the vaccine will pass," she said. "The FDA wants to see this pass."
Investors spared Aviron's marketing partner on FluMist, American Home Products (AHP: up $0.26 to $58.32, Research, Estimates), from a broad selloff, as the Madison, N.J.-based drug maker posted a gain of 0.50 percent Monday.
The flu infects 35 million-to-50 million Americans a year and costs the country an estimated $12 billion in direct and indirect expenses.
-- from staff and wire reports 
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