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Third Q. earnings Report....
Human Genome Sciences Reports Third Quarter Financial Results
ROCKVILLE, Md., Oct. 29 /PRNewswire/ -- Human Genome Sciences, Inc.
(Nasdaq: HGSI) today announced a net loss of $2.1 million, or $0.09 per share,
for the quarter ended September 30, 1998. This compares to a net loss of
$3.7 million, or $0.17 per share, for the year earlier period. Total revenues
were $11.3 million compared to $6.5 million in revenues for the year earlier
period. The difference in revenues was primarily attributable to receipt of
the final milestone payment from Pioneer Hi-Bred International and recognition
of deferred revenues from two other partners.
The Company also announced a net loss of $10.6 million, or $0.48 per
share, for the first nine months of 1998. This compares to a net loss of
$12.9 million, or $0.61 per share, for the same period of 1997. Total
revenues were $27.2 million for the first nine months compared to
$22.6 million for the year earlier period. The difference in revenues was
also primarily attributable to receipt of the Pioneer final milestone payment
and deferred revenue recognition.
Cash and short-term investments, including restricted cash, totaled
$193.2 million at September 30, 1998.
"The financial results for the quarter and year-to-date are in line with
management's expectations," said Steven C. Mayer, Senior Vice President and
Chief Financial Officer. "We made significant progress in several areas. In
our clinical development program, Myeloid Progenitor Inhibitory Factor-1
(MPIF-1) successfully completed Phase I human clinical trials for protection
of early progenitor cells from the effects of chemotherapeutic agents. In
addition, Keratinocyte Growth Factor-2 (KGF-2) successfully completed a Phase
I human clinical trial for topical applications of this potential wound
healing drug. We anticipate that both proteins will advance to Phase II
clinical trials. Construction of our process development and manufacturing
facility is proceeding and is expected to be completed this winter, on-time
and on-budget."
Mr. Mayer continued, "In mid-September, two of HGSI's many patent
applications published under the auspices of the Patent Cooperation Treaty
(PCT). These two patent applications cover 256 human genes and are the first
to result from our functional genomics program. To date, a total of 615 genes
are covered by HGSI's published patent applications. Additional patent
applications are due to be published in the coming months, which should reveal
the full scope and scale of our progress. "
The current number of U.S. notices of patent allowance received by HGS is
now 69, of which 41 have issued. All of these patents and patent applications
cover inventions based on full-length sequences of human genes.
Human Genome Sciences is a company with the mission to develop products to
predict, prevent, detect, treat and cure disease based on its leadership in
the discovery and understanding of human and microbial genes. HGS and Human
Genome Sciences are registered trademarks of Human Genome Sciences, Inc. The
Company's press releases are available at HGSI's web site at
hgsi.com. Copies of press releases are also available by
fax 24 hours a day at no charge by calling 800-758-5804, ext. 121115.
Any statements released by Human Genome Sciences, Inc. that are
forward-looking are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Readers are cautioned that
forward-looking statements involve risks and uncertainties which may affect
the Company's business prospects and performance. These include economic,
competitive, governmental, technological and other factors discussed in the
company's filings with the Securities and Exchange Commission on forms 10-K
and 10-Q.
Human Genome Sciences, Inc.
Selected Financial Data
Three Months Nine Months
Ended Ended
09/30/98 09/30/97 09/30/98 09/30/97
(In thousands, except share and per share data)
Statement of Operations Data:
Revenue-research
and development
Collaborative
contracts $11,279 $6,539 $27,206 $22,639
Costs and expenses:
Research and development:
Direct expenditures 12,332 10,632 34,689 28,583
Payments under research
services agreement 0 22 0 6,141
General and
administrative 3,481 2,631 10,536 7,918
Total costs and
expenses 15,813 13,285 45,225 42,642
Income (Loss)
from operations (4,534) (6,746) (18,019) (20,003)
Net interest income. 2,609 3,008 8,209 7,342
Equity in income
(loss) of joint Venture (202) 0 (602) 0
Income (loss)
before taxes (2,127) (3,738) (10,412) (12,661)
Provision for
income taxes 0 0 225 245
Net income (loss) $(2,127) $(3,738) $(10,637) $(12,906)
Net income (loss)
per share $(0.09) $(0.17) $(0.48) $(0.61)
Weighted average
number of shares 22,410,101 22,228,023 22,376,296 21,261,445
September 30, December 31,
1998 1997
Balance Sheet Data:
Cash, cash equivalents and
Short-term
investments (a) $193,233 $211,794
Total assets 250,541 236,232
Total debt and
capital leases, less
Current portions 2,224 2,224
Total stockholders' equity 215,835 223,254
(a) Includes $6,654 and $6,582 in restricted cash at September 30, 1998
and December 31, 1997, respectively.
SOURCE Human Genome Sciences, Inc.
CO: Human Genome Sciences, Inc.
ST: Maryland
IN: MTC HEA
SU: ERN
10/29/98 08:21 EST prnewswire.com
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