JMP says Human Genome still market outperform

Human Genome Sciences, Inc. was reiterated by JMP Securities analyst Charles C. Duncan at a market outperform rating and a $15 price target on news that the company plans to spin off its CoGenesys division. JMP said it views the transaction favorably as a strategic step in the progression of Human Genome into a later-stage clinical development and commercialization company. Terms of the deal bode well for investors, JMP said, because Human Genome has the first right of refusal to co-develop resulting drugs and will be subject to milestone payments and royalties. The spinoff also reduces the company's costs by about $35 million over the next three years. Shares of the Rockville, Md., biopharmaceutical company were down 10 cents, or 1.11%, at $8.91 on volume of 1,901,768 shares versus the three-month running average of 3,627,030 shares.

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