Human Genome Sciences (HGSI)

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.