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                                                                       EXHIBIT 3

                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                      FOR THE YEAR ENDED DECEMBER 31, 2003

THE FOLLOWING INFORMATION SHOULD BE READ IN CONJUNCTION WITH THE AUDITED
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2003 AND RELATED NOTES
PREPARED IN ACCORDANCE WITH CANADIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.

OVERVIEW

ID Biomedical Corporation (`the Company') is a biotechnology company focused on
the development of proprietary subunit vaccines including those based on its
Proteosome(TM) protein intranasal adjuvant/delivery technology. The Company is
developing subunit vaccines for the prevention of a number of different
diseases. Subunit vaccines differ from traditional vaccines in that they consist
of proteins or other components of the organism rather than the whole, live
organism. The Company's product candidates in clinical development are:

StreptAvax(TM) vaccine, a multivalent subunit vaccine against group A
streptococcus. A prototype formulation of this vaccine has been tested in human
clinical trials in the United States in collaboration with the University of
Tennessee and the United States National Institutes of Health, and a more
advanced formulation is currently being tested in human clinical trials with
Dalhousie University in Canada; and

FluINsure(TM) vaccine, an intranasally delivered subunit influenza ("flu")
vaccine, which has been tested in a Phase I Clinical Trial at the University of
Rochester, two Phase II Clinical Trials in Canada, Phase II challenge trials in
the United Kingdom, and is currently being tested in a 1360 person field
efficacy trial in Canada.

The Company also has pre-clinical research programs that include the possible
development of an allergy vaccine, a vaccine against respiratory syncitial virus
(RSV) and vaccines against biological warfare agents. All of the Company's
pre-clinical research programs are based on a potential platform vaccine
technology for the intranasal delivery of vaccine antigens.
This proprietary platform is trademarked Proteosome(TM) technology.

In addition to the Company's main business, the Company also owns and licenses
rights to a proprietary genomics analysis system, Cycling Probe(TM) Technology
(CPT). The Company is licensing CPT and its patents in signal amplification to
other parties in the genomics and diagnostic industry for further product and
technology development. Currently, the Company has licensing arrangements in
place with Applied Biosystems, Mitsubishi Chemical Corporation, Apogent Inc.,
and Takara Biomedical Group ("Takara").

CRITICAL ACCOUNTING POLICIES

Our consolidated financial statements are prepared in accordance with Canadian
generally accepted accounting principles ("Canadian GAAP"). A reconciliation of
amounts presented in accordance with United States generally accepted accounting
principles ("U.S. GAAP") is described in Note 21 to our consolidated financial
statements for the year ended December 31, 2003. These accounting principles
require us to make certain estimates and assumptions. We believe that the
estimates and assumptions upon which we rely are reasonable based upon
information available to us at the time that these estimates and assumptions are
made. Actual results could differ from our estimates. Areas of significant
estimates include valuation and amortization of medical technology and
recognition of deferred revenue.

The significant accounting polices that we believe are the most critical in
fully understanding and evaluating our reported financial results include the
following:

o Revenue recognition
o Medical technology

REVENUE RECOGNITION

Our revenue to date has been derived from several sources including licensing
fees which are comprised of initial fees and milestone payments from our CPT
partnering arrangements. Non-refundable milestone payments are fully recognized
upon the achievement of the milestone event when the Company has no further
involvement or obligation to perform under the arrangement. Initial fees and
milestone payments which require ongoing involvement or licensing are deferred
and amortized into income over the estimated period of our ongoing involvement
or licensing. If we determine that a company used our technology prior to
signing a license, then a



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portion of the initial fee may be recognized upon signing the agreement to
account for such prior use. Changes in our contractual arrangements or the
nature or extent of our ongoing involvement on existing contracts in the future
may impact the extent and timing of our revenue recognition.

Revenue from the Company's research and development contracts is recorded at the
time the research and development activities are performed in accordance with
the terms of the specific contracts.

MEDICAL TECHNOLOGY

The Company capitalizes the cost of acquiring medical technology. Costs are
amortized over the estimated useful life of the technology once use of the
related product commences or once the Company enters into a licensing agreement
with respect to the technology. We determine the estimated useful lives for
medical technology based on a number of factors such as legal, regulatory or
contractual limitations; known technological advances; anticipated demand; and
the existence or absence of competition. We review the carrying value of our
intangible assets on an annual basis to determine if there has been a change in
any of these factors. A significant change in these factors may warrant a
revision of the expected remaining useful life of the intangible asset,
resulting in accelerated amortization or an impairment charge, which would
impact earnings.

CHANGES IN ACCOUNTING POLICIES

During the year the Company adopted the revised recommendations contained in the
Canadian Institute of Chartered Accountants ("CICA") Handbook Section 3870 -
Stock Based Compensation. Under the new pronouncements, the Company has chosen
to prospectively adopt the fair value method of accounting for all employee and
non-employee stock-based compensation granted, modified or settled on or after
January 1, 2003. No retroactive restatement is required and adoption of the
recommendation has no effect on the prior period consolidated financial
statements. Prior to the adoption of the fair value method, the Company had used
the settlement method for the recording of stock-based compensation. No
compensation expense was recognized for the plan when stock or stock options
were issued to employees. The adoption of this accounting policy resulted in the
recognition of $1.7 million in compensation expense for the year ended December
31, 2003. The Company has disclosed the pro forma effects to the loss for the
year and loss per share as if the fair value method had been used for all awards
including those granted prior to January 1, 2003.

We use the Black-Scholes option pricing model to calculate the fair value of the
stock options granted, modified or settled. Our current weighted average
assumptions include: an expected life of 4.35 years, a risk free interest rate
of 3.82% and annualized volatility of 84.92%. A change in any of these
assumptions could impact earnings.

RESULTS FROM OPERATIONS

The Company recorded a net loss of $31.9 million ($0.89 per share) for the year
ended December 31, 2003 compared to net loss of $14.5 million ($0.46 per share)
for the year ended December 31, 2002. Provided below is selected financial
information for each of the eight most recently completed quarters.

REVENUES

For the year ended December 31, 2003, the Company's revenues totaled $6.8
million compared to $10.9 million in 2002. The decrease in revenue over the
comparable period is attributable to genomic licensing revenues recognized in
January 2002 as a result of the Company's agreement with Takara.

Deferred licensing revenue in the amount of $2.7 million was recognized for the
year ended December 31, 2003, compared to $2.6 million in 2002. Based on the
Company's current licensing agreements, amortization of deferred licensing
revenue is expected to continue at the present amount through October 2006. The
amortization of deferred licensing revenue does not result in additional cash to
the Company.

Research and development contract revenue in the amount of $4.1 million was
recorded for the year ended December 31, compared to nil in 2002. Research and
development contract revenue increased as a result of agreements executed during
2003 with Dynport Vaccine Company for the development of an antigen for a
subunit plague vaccine.

We may receive licensing fees and research and development contract revenue in
the future from existing and new agreements. The extent and timing of such
additional licensing fees and contract revenue, if any, will be dependent upon
the overall structure and, terms and conditions of current and any future
agreements.



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EXPENDITURES

RESEARCH AND DEVELOPMENT
Research and development expenditures consist primarily of costs associated with
clinical development programs, research and development contracts, and other
research programs including gene-based testing (CPT); accordingly, we track
expenditures by these segments.

For the years ending December 31, 2003 and 2002 approximately 86% and 83% of our
net research and development expenditures were spent on clinical development
programs, approximately 11% and nil were spent on activities relate to research
and development contracts, and approximately 3% and 17% were spent on other
research programs including gene-based testing.

Net research and development expenses increased $16.9 million, or 136%, to $29.3
million for the year ended December 31, 2003 compared to the year ended December
31, 2002. Significant changes for the year ended December 31, 2003 compared to
2002 include an increase in external contracts of $9.8 million in support of
human clinical trials of the Company's FluINsure(TM) vaccine and StreptAvax(TM)
vaccine product candidates. In addition, employee related expenses increased
$4.9 million; $1.2 million of this increase is attributable to stock option
compensation expense, and the remaining is a result of personnel growth to
support the development, clinical testing and manufacturing for the Company's
FluINsure(TM) vaccine and StreptAvax(TM) vaccine product candidates.

Research and development costs are reported net of grants received or receivable
from Technology Partnerships Canada ("TPC") and provincial government investment
tax credits. TPC grants totaled $1.8 million for the year ended December 31,
2003 compared to $2.0 million in 2002. During 2003, the Company attained its
total allowable funding under the TPC agreement. Provincial government
investment tax credits totaled $0.6 million for the year ended December 31, 2003
as compared to $0.8 million in 2002.

In the future we expect increases in expenses related to the development,
manufacturing and clinical trial related expenses associated with the continued
advancement of the Company's FluINsure(TM) vaccine and StreptAvax(TM) vaccine
product candidates.

GENERAL AND ADMINISTRATIVE

General and administrative expenses increased $1.9 million, or 40% to $6.7
million for the year ended December 31, 2003 compared to the year ended December
31, 2002. This increase is attributable to stock option compensation expense of
$0.5 million and other increases associated with continued development of our
finance, human resources and business development activities.

For 2004, a moderate increase in general and administrative expenses is expected
to support the continued advancement of the Company's vaccine products and
business development activities.

DEPRECIATION AND AMORTIZATION

Depreciation and amortization expense relates to facilities and equipment,
patent and trademark rights, and medical technology and other assets.
Depreciation and amortization expense increased $0.3 million, or 8%, to $4.3
million for the year ended December 31, 2003 compared to the year ended December
31, 2002.

We believe that depreciation and amortization expense will increase in 2004 due
to capital asset additions necessary to support the Company's vaccine product
candidates.

INVESTMENT AND OTHER INCOME

Investment and other income increased $0.9 million, or 170%, to $1.5 million for
the year ended December 31, 2003 compared to the year ended December 31, 2002.
This increase is a result of greater interest income from significantly higher
levels of cash and short term investments resulting from the Company's 2003
financing activities. In addition the Company recognized a foreign exchange loss
of $0.1 million for the year ended December 31, 2003 as compared to a loss of
$0.2 million in 2002.

The Company expects investment and other income will continue to fluctuate in
relation to cash balances, interest rates, and foreign exchange rates.



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GAIN ON SALE (LOSS ON WRITE-DOWN) OF SHORT TERM INVESTMENT

In January of 2003, the Company sold its investment in Third Wave Technologies
Inc. for $2.5 million resulting in a gain of $1.7 million. The Company
recognized a $3.8 million loss on write down on this investment in 2002.

LOSS ON DISPOSAL OF MEDICAL TECHNOLOGY AND OTHER ASSETS

For the year ended December 31, 2003 the Company recorded a $1.6 million loss
from the disposal of medical technology and other assets. This amount represents
the unamortized portion of medical technology and patent rights, less the
termination of an obligation classified as a long-term debt, related to research
programs targeting possible vaccines against Mycobacterium tuberculosis and
against E.coli, which the Company is no longer pursuing. The Company did not
record any loss on disposal of medical technology and other assets in 2002.

INCOME TAXES

For the year ended December 31, 2003 the Company recorded income taxes in the
amount of $0.02 million compared to $0.8 million in 2002. Income tax amounts
represent foreign withholding taxes on licensing payments received from Takara.

LIQUIDITY AND CAPITAL RESOURCES

Since its inception, the Company has financed its technology acquisitions,
research and development activities and capital expenditures from the licensing
of the Company's technologies, private and public equity financing, and leasing
transactions. The Company has also received proceeds from contract revenue
related to collaborative research and development agreements with corporate
partners, and grants from government agencies.

We expect future funding to be provided though public equity financing and
contract revenue from collaborative research and development agreements.

The Company's primary objective for the investment of funds is to preserve the
Company's cash for the continued advancement of the Company's FluINsure(TM)
vaccine and StreptAvax(TM) vaccine product candidates, research, and other
operating expenditures by investing in low risk, readily marketable securities.
The Company had cash and short-term investments of $156.2 million at December
31, 2003 as compared to $23.8 million at December 31, 2002. The Company's
working capital increased to $149.0 million at December 31, 2003 compared to
$20.7 million at December 31, 2002. This increase is the result of the Company's
May 2003 equity and October 2003 unit offerings less the funding of the
Company's research, development and manufacturing activities. Also impacting the
Company's liquidity and capital resources are the exercise of stock options,
debt repayment and additions of facilities and equipment, patent and trademark
rights, and medical technology and other assets.

Cash used in operating activities was $22.9 million for the year ended December
31, 2003 compared to $7.2 million in 2002. The increase in cash used in
operating activities results from increases in net research and development
expenses associated with the development, manufacturing, and clinical trial
expenses of the Company's FluINsure(TM) vaccine and StreptAvax(TM) vaccine
product candidates, changes in non-cash working capital items and a one-time
initial licensing payment received from Takara in early 2002.

Additions to facilities and equipment were $5.3 million for the year ended
December 31, 2003 compared to $1.7 million in 2002. This increase is associated
with facility expansion to support the clinical and manufacturing development of
the Company's vaccine product candidates.

Patent and trademark rights added during the year ended December 31, 2003
totaled $0.3 million compared to $0.4 million in 2002.

Additions to medical technology were $0.01 million for the year ended December
31, 2003 compared to $0.6 million for the same period in 2002.

Proceeds from the issuance of common shares and stock purchase warrants, net of
issue costs, was $160.1 million for the year ended December 31, 2003 compared to
$6.0 million in 2002. This increase is the result of the Company's equity and
unit offerings that were completed on May 28 and October 28, 2003, respectively,
and the exercise of stock options.



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For the year ended December 31, 2003, the Company made debt payments, including
payments of obligations under capital leases, totaling $1.1 million. Debt
payments in 2002 totaled $2.4 million. Required additional principal payments on
capital leases are $0.2 million. In addition the Company has entered into
operating lease agreements for office and laboratory space and office equipment.
The minimum annual commitments related to these agreements and the Company's
capital leases are as follows:

We have no relationships with any "special purpose" entities and have no
commercial commitments with related parties. The only contractual obligations
are in the form of operating leases, capital leases, and future research and
development expenditures.

We expect that our available cash resources, working capital, expected interest
income, expected licensing revenue, estimated funding from corporate
partnerships and proceeds from our equity and unit offerings, should be
sufficient to satisfy the funding of existing product development programs and
other operating and capital requirements for at least the next 24 months. The
amount of the expenditures that will be necessary to execute our business plan
is subject to numerous uncertainties, which may adversely affect liquidity and
capital resources to a significant extent. Our two lead product candidates,
StreptAvax(TM) vaccine and FluINsure(TM) vaccine, are in human clinical trials.
Completion of clinical trials may take several years or more, but the length of
time generally varies substantially according to the type, complexity, novelty
and intended use of a product. The duration and the cost of clinical trials may
vary significantly over the life of a project as a result of unanticipated
developments arising during the clinical trials and the duration and cost
therefore cannot be estimated.

RISKS AND UNCERTAINTIES

The Company will require additional capital to fund its ongoing research and
development, product development, and other operating activities. As a result,
the Company intends to seek funds from a variety of sources, including corporate
alliances, cooperative research and development agreements and other financing
arrangements. In addition, the Company will likely issue securities if it
determines that additional capital could be obtained under favorable conditions.
However, there can be no assurance that these funds will be available on
favorable terms, if at all.

To the extent possible, management implements strategies to reduce or mitigate
the risks and uncertainties associated with the Company's business. Operating
risks include (i) the Company's ability to successfully complete pre-clinical
and clinical development of its products, (ii) the Company's ability to obtain
and enforce timely patent and other intellectual property protection and to
avoid or license third party intellectual property covering its technology and
products, (iii) decisions, and the timing of decisions, made by health
regulatory agencies regarding approval of the Company's products, (iv) the
Company's ability to complete and maintain corporate alliances relating to the
development and commercialization of its technology and products, (v) market
acceptance of the Company's technology and products, (vi) the competitive
environment and impact of technological change, and (vii) the continued
availability of capital to finance the Company's activities.

FORWARD-LOOKING STATEMENTS AND CAUTIONARY FACTORS THAT MAY AFFECT FUTURE RESULTS

The information in this annual report contains so-called "forward-looking"
statements. These include statements about ID Biomedical's expectations,
beliefs, intentions or strategies for the future, which may be indicated by
words or phrases such as "anticipate", "expect", "intend", "plan", "will", "we
believe", "ID Biomedical believes", "management believes", and similar language.
All forward-looking statements are based on ID Biomedical's current expectations
and are subject to risks and uncertainties and to assumptions made. Important
factors that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements include: (i) the
possibility that the transaction currently proposed between Shire
Pharmaceuticals Group plc and ID Biomedical will take longer than expected to
complete; (ii) the possibility that some or all of the conditions of closing for
such transaction will not be satisfied or waived and that such transaction will,
therefore, be terminated before it is completed; (iii) the possibility that the
terms of such transaction will be altered prior to completion thereof, including
as may be required to satisfy conditions of required regulatory consents; (iv)
the ability to successfully complete preclinical and clinical development of its
products; (v) the ability to obtain and enforce timely patent and intellectual
property protection for its technology and products; (vi) the ability to avoid,
either by product design, licensing arrangement or otherwise, infringement of
third parties' intellectual property; (vii) decisions, and the timing of
decisions, made by the health regulatory agencies regarding approval of its
products for human testing; (viii) the ability to complete and maintain
corporate alliances relating to the development and commercialization of its
technology and products; (ix) market acceptance of its technology and product;
and (x) the competitive environment and impact of technological change. There is
no guarantee that the development path from Phase I to Phase II to Phase III and
so on will be either linear or successful. ID Biomedical bases its




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forward-looking statements on information currently available to it, and assumes
no obligation to update them.

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

The consolidated financial statements contained in this annual report have been
prepared by management in accordance with Canadian generally accepted accounting
principles and have been approved by the Board of Directors. The integrity and
objectivity of these financial statements are the responsibility of management.
In addition, management is responsible for all other information in this annual
report and for ensuring that this information is consistent, where appropriate,
with the information contained in the financial statements.

In support of this responsibility, management maintains a system of internal
controls to provide reasonable assurance as to the reliability of financial
information and the safeguarding of assets. The financial statements include
amounts, which are based on the best estimates and judgments of management. The
Board of Directors is responsible for ensuring that management fulfills its
responsibility for financial reporting and internal control and, exercises this
responsibility principally through the Audit Committee. The Audit Committee
consists of six directors not involved in the daily operations of the Company.
The Audit Committee meets with management and the external auditors to satisfy
itself that management's responsibilities are properly discharged and to review
the financial statements prior to their presentation to the Board of Directors
for approval.

The Company's auditors, KPMG, LLP, have conducted an independent examination of
the financial statements. Their examination includes a review of the Company's
system of internal controls and appropriate tests and procedures to provide
reasonable assurance that the financial statements are, in all material
respects, presented fairly and in accordance with accounting principles
generally accepted in Canada.




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