NEW YORK (CNN/Money) - Chiron Corp. said Wednesday it will produce fewer influenza virus vaccines than previously expected because of last year's regulatory problems, but insisted there will be enough of the vaccine for those most in need.

"I think with these projections the [Centers for Disease Control and Prevention] will be in a good position to reach the people most in need of the vaccine and additional targets as well," said Chiron spokeswoman Alison Marquiss.

Chiron (down $2.19 to $35.76, Research), a biotech based in Emeryville, Calif., said it will produce 18 million to 26 million doses of Fluvirin for the influenza season in 2005 and 2006. This is significantly lower than the estimate given during its first-quarter earnings report on April 27, when Chiron projected 25 million to 30 million doses.

The company adjusted its projected income accordingly. On Wednesday, the company projected 2005 income from continuing operations to be between $1.20 and $1.45 per share an adjusted basis, and between 86 cents and $1.11 per share on a GAAP basis.

This is a revision from the April 27 estimate, when the company projected income from continuing operations to be between $1.40 and $1.50 per share on an adjusted basis and $1.06 and $1.16 per share on a GAAP basis.

Chiron has had problems with Fluvirin before. Fluvirin, which is manufactured in England, was pulled from the market last October after British health authorities found fault with contaminated supplies at the company's facility. The action left the United States without nearly half the flu vaccine needed for the past flu season.

Marquiss said the regulatory and manufacturing delays were directly related to the decreased projections.

"We're working on a campaign for the next season and we're also executing on the remediation plan to improve the facility overall," said Marquiss.

Chief executive officer Howard Pien said in a press release that "while it remains possible that we will reach our previously announced range, the delays and other manufacturing issues have had an adverse impact on our ramp-up to full production, so we are updating our dose expectations and guidance range."

Chiron was uable to sell Fluvirin during the 2004-2005 flu season, but made $225 million from the vaccine during the previous season

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