Human Genome Sciences reports second-quarter net loss of $61.3 million

By Lisa Kerner

Charlotte, N.C., Aug. 9 - Human Genome Sciences, Inc. reported second-quarter 2006 GAAP net loss of $61.3 million, or $0.47 per share, an increase from the net loss of $56.0 million, or $0.43 per share, for the second-quarter 2005.

Revenues for the second quarter were down at $2.2 million from $2.9 million in the prior-year period.

At June 30, the Human Genome had cash and investments totaling $784.7 million, compared with $580.4 million as of March 31.

For the six months ended June 30, Human Genome had a GAAP net loss of $123.4 million, or $0.94 per share, compared with a net loss of $115.6 million, or $0.88 per share, for the same six-month period in 2005.

Revenues for the first half of 2006 increased to $9.1 million from $4.0 million for the prior-year period. Human Genome attributed the increase to recognition in the first quarter of 2006 of a $6 million milestone from GlaxoSmithKline.

Human Genome said it expects to end 2006 with cash and investments totaling between $725 million and $775 million, net cash burn in the range of $75 million to $125 million and total revenues of approximately $22 million.

During the second quarter, Human Genome entered into an exclusive worldwide collaboration worth up to $507.5 million with Novartis to develop and commercialize Albuferon.

The company also entered into a definitive agreement with GlaxoSmithKline for LymphoStat-B. Phase 3 development of Albuferon and LymphoStat-B is expected to begin by the end of 2006.

In addition, the U.S. government agreed to buy 20,000 doses of ABthrax (raxibacumab) from Human Genome for an estimated $165 million.

"The second quarter was exceptionally productive for HGS," chief financial officer Tim Barabe said in a company news release.

"From a financial perspective, we doubled our cash available for operations with the sale and leaseback of our large-scale manufacturing facility and the new lease for our headquarters facility."

Human Genome, based in Rockville, Md., develops drugs with a focus on protein and antibodies.

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