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Human Genome Sciences Reports 1998 Financial Results
ROCKVILLE, Md., Feb. 11 /PRNewswire/ -- Human Genome Sciences, Inc.
(Nasdaq: HGSI) today reported revenues of $29.6 million and a net loss of
$23.2 million, or $1.03 per share, for the year ended December 31, 1998. This
compares to revenues of $25.6 million and a net loss of $21.4 million, or
$0.99 per share, for the year ended December 31, 1997. The difference in
revenues is primarily attributable to final payments received by HGSI under
its collaboration with Pioneer Hi-Bred, and the recognition of revenues
relating to the agreement with Transgene, S.A., both in 1998.
Cash and short-term investments totaled $188.5 million, including
$6.7 million of restricted cash, at December 31, 1998, compared to
$211.8 million, including $6.6 million of restricted cash, at
December 31, 1997.
For the fourth quarter ended December 31, 1998, HGSI recorded revenues of
$2.4 million and a net loss of $12.5 million, or $0.55 per share, compared to
revenues of $3.0 million and a net loss of $8.5 million, or $0.38 per share,
during the fourth quarter of 1997. The increase in net loss for the quarter
compared to the fourth quarter of 1997 was primarily attributable to the
recognition of losses from the Company's joint venture, Vascular Genetics
Inc., increased pre-clinical and clinical research and development expenses
and a decrease in revenue recognition under the Company's collaboration with
Pharmacia & Upjohn, Inc.
At the current time, HGSI has filed patent applications on more than
2,800 novel human genes. The number of genes and proteins for which patent
applications have published under the auspices of the Patent Cooperation
Treaty is now over 1,100. The number of genes now covered by U.S. notices of
patent allowance is 78, of which 56 are covered by issued patents. All of
these patents and patent applications cover inventions based on full-length
sequences of human genes with proposed medical applications.
"The financial results for the quarter and full year are in line with
management's expectations," said Steven C. Mayer, Senior Vice President and
Chief Financial Officer. "HGSI achieved several milestones in 1998 that mark
the Company's ongoing transition to a fully integrated pharmaceutical company.
Among these are the initiation of three human clinical study programs for two
novel human proteins, Myeloid Progenitor Inhibitory Factor-1 and Keratinocyte
Growth Factor-2. Furthermore, our joint venture company, Vascular Genetics
Inc., initiated a human clinical study program with a gene therapy product
based on Vascular Endothelial Growth Factor-2. To further leverage the gene
therapy rights of the genes discovered by HGSI, the Company formed a new
collaboration, with Transgene S.A. for the development and marketing of gene
therapy products. In addition, construction of the Process Development and
Manufacturing facility is nearing completion. It will enable HGSI to produce
therapeutic proteins under cGMP requirements for clinical trials and possibly
for commercial launch."
"An important component of the Company's strength is HGSI's financial
position," said Mr. Mayer. "The product development agreements into which the
Company has entered have provided substantial funding to date and,
potentially, will provide a long-term revenue stream from the sale of our
partners' products. This has allowed the Company to select carefully which
therapeutic proteins and genes to develop as HGSI's proprietary pharmaceutical
products, while maintaining a strong cash position."
Human Genome Sciences is a company whose mission is 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. For additional information on Human Genome Sciences, Inc.,
visit the company'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 Ended Year Ended
12/31/98 12/31/97 12/31/98 12/31/97
(In thousands, except share and per share data)
Statement of Operations Data:
Revenue-research and
development
Collaborative contracts $2,392 $2,966 $29,598 $25,605
Costs and expenses:
Research and development:
Direct expenditures 12,317 11,310 47,006 39,893
Payments under research
services agreement -0- 106 -0- 6,247
General and
administrative 3,834 3,195 14,370 11,113
Total costs
and expenses 16,151 14,611 61,376 57,253
Income (loss) from
operations (13,759) (11,645) (31,778) (31,648)
Net Interest income 2,838 3,158 11,047 10,500
Equity in income (loss)
of joint venture (1,624) -0- (2,226) -0-
Income (loss) before
taxes (12,545) (8,487) (22,957) (21,148)
Provision for income
taxes -0- -0- 225 245
Net income (loss) $(12,545) $(8,487) $(23,182) $(21,393)
Net income (loss)
per share $(0.55) $(0.38) $(1.03) $(0.99)
Weighted average
number of shares 22,605,748 22,308,195 22,434,131 21,525,283
December 31, 1998 December 31, 1997
Balance Sheet Data:
Cash, cash equivalents and
short-term investments(a) $188,516 $211,794
Total assets 244,247 236,232
Long-term debt, net of
current portion 1,780 2,224
Total stockholders' equity 208,848 223,254
(a) Includes $ 6,749 and $6,582 in restricted cash at December 31, 1998
and December 31, 1997, respectively.
SOURCE Human Genome Sciences, Inc.
CO: Human Genome Sciences, Inc.
ST: Maryland
IN: MTC
SU: ERN
02/11/99 06:50 EST prnewswire.com
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