Human Genome Sciences (NASDAQ:HGSI)

hard to come out from so under S&P

hit alltime low of 6$ and three new drugs in final stages ...along with recent upgrades to buy on 1-24-08 by years expect this to double

Oversold.

A pleasant surprise to investors who patiently have waited
for abundant news&profits.

Both their drugs in late-stage trials have competition that will blow them away. With nothing else in the pipeline, look out below.

insider buying

Human Genome Sciences is harnessing the power of the human genome to develop innovative drugs. The company's research and development focuses on discovering and commercializing therapeutic proteins, antibodies and genes to advance clinical trials in two main therapeutic areas: immunology/infectious disease and oncology. The company has relationships with a number of leading pharmaceutical and biotechnology companies including GlaxoSmithKline, Amgen, Genentech, Biosite, Cambridge Antibody Technology, Medarex, Novartis, and Transgene to leverage its strengths and gain access to complementary technologies and sales and marketing infrastructure.

The company has a strong pipeline with two products in Phase III trials addressing major markets and three partnered products in various stages of clinical development also targeting major markets. Two of the most advanced products, Albuferon for hepatitis C and LymphoStat-B for lupus, are both expected to see active enrollment of patients for Phase III clinical trials in early 2007. However, complete analysis of Albuferon will be accomplished by the end of 2008 and it will be commercialized only by 2010. Similarly, LymphoStat-B will be launched only after 2009. Additionally, ABthrax for treating infectious anthrax is also advancing in late stage development, which is expected to generate $165 million in fiscal 2008.

The company reported a third quarter net loss of $60 million. Revenues were $6.7 million, and included $3.7 million in milestone payments associated with the Albuferon and LymphoStat-B programs. An average annual cash burn is expected to be about $150 million for the next few years. The company has been incurring substantial research and development costs to the extent of more than 15 times the sales in the past several quarters. Hence, it is expected that company will not see substantial revenues in the near term until either Albuferon or LymphoStat-B is approved.

Good management, conservative, honest, also prommising pipeline, strong partners, new drugs for underserved patient populations

2 drugs in Phase 3 testing. both with Blockbuster potential.

Finally transitioning to a revenue generating company instead of a pure cash burner, with cash enough to last several years. Limited downside risk, with possible dramatic upside potential or possible acquisition target.

I bought HGSI in 1999 for $70 because it was a Motley Fool “Rule Breaker”. Almost immediately it went to $110 because of a promising AIDS related drug. I kept it. What could go wrong? In March 2000 I lost my job. In April 2000 HGSI hit $40. Then it went to $10. It has bounced between $8 and $13 ever since but I still own it because some day it will climb out of the toilet. If you believe that, I have a bridge for you.

Company on the right path and needs to see itself as one of the big boys in medical developments.

They have patented over 2,000 dna sequences already. Even if their products are not blockbusters, they will earn revenues on patents from other biotech companies. I like their approach and see them being the next pfeizer, etc.

Buy

if you believe that Insider buying is dead money,then this is not what
you would invest in...

some large possitions have been taken lately...

insider buying.
very volatile and unpredictable.
it is on phase III for SLE drug a $300 MM market
has an arrangement with novartis for hepatitis C... big potential
signed a contract for $165 MM for anthrax drug delivering in 2009.....if approved

could be a rocket or nothing

HGSI has a phenominal early stage pipeline of agents directed at very lucrative markets. While cash flow has been problematic for the company and profits are still years away, the stock is likely to take off (and stay there) on any positive news regarding its later stage compounds. Strength from the GSK and Novartis partnerships should buoy the stock at this level.