Human Genome Sciences Announces Second Quarter 2008 Financial Results and Key De...(laxoSmithKline (GSK). The Company rep...)

The Company reported a net loss for the quarter ended June 30, 2008 of $74.2 million ($0.55 per share), compared with a net loss for the second quarter of 2007 of $51.3 million ($0.38 per share). The increased net loss for the quarter was due primarily to increased research and development costs related to the progress of LymphoStat-B Phase 3 trials, in addition to increased ABthrax manufacturing costs for production required to initiate delivery to the Strategic National Stockpile under the Company's agreement with the U.S. Government.

For the six months ended June 30, 2008, HGS reported increased revenues of $23.8 million, compared with revenues of $18.3 million for the same period of the previous year. Revenues included $17.7 million recognized from the Albuferon agreement and $3.3 million recognized from the LymphoStat-B agreement.

The Company reported a net loss of $121.1 million ($0.90 per share) for the six months ended June 30, 2008, compared with a net loss of $102.3 million ($0.76 per share) for the same period of the previous year. The increased net loss for the six months was due primarily to increased research and development costs related to LymphoStat-B Phase 3 trials and the Company's oncology portfolio, including HGS-ETR1 and HGS1029, in addition to increased ABthrax manufacturing costs. These costs were partially offset by a one-time gain resulting from the sale of CoGenesys, Inc. stock to Teva Pharmaceutical Industries, Ltd.

Net cash burn for the six months ended June 30, 2008 totaled $113.1 million. (For information on the calculation of this non-GAAP financial measure, visit http://www.hgsi.com/images/Q2results/netcashburn.pdf ) As of June 30, 2008, cash and investments totaled $539.3 million, of which $466.8 million is unrestricted and available for operations. This compares with cash and investments totaling $603.8
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