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Biotech / Medical : VD's Model Portfolio & Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (6453)	2/12/1999 11:00:00 PM
From: Rocketman	Read Replies (1) \| Respond to of 9719

Peter, sorry for the delay in giving you comments, but I read this post when I didn't have time to comment and just remembered it was here. >>>>>>>> Human Genome Sciences, Inc. (Nasdaq: HGSI - news) 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. HGSI achieved several milestones in 1998 that mark the Company's ongoing transition to a fully integrated pharmaceutical company. >>>>>>>> Oh, no doubt that HGSI has an impressive genomics effort and patent portfolio, but it isn't their emphasis these days, what they want to be is a pharma company and that is where they are focusing their efforts. Plus, the revenue growth is anemic and their loss is widening. This is a company that will burn away their cash hoard trying to get drugs to market. Well, on average, of the 10 drugs that enter Phase I clinicals, MAYBE 1 gets to market. As far as a biotech that wants to be a drug company, at least they have a model that provides some revenue stream, versus the completely revenue-less capital sinks. But, if I was a pharma company looking to do a genomics deal for information, I would certainly do a deal with INCY who is strictly a genomics platform service provider than with HGSI who is a wannabe competitor, unless I did a deal with both to get the best of both worlds (ie. SKB). Someday IMHO, INCY and HGSI are going to have to get together and figure out a way to resolve their patent interferences and data overlaps. Rman