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Biotech / Medical : Human Genome Sciences, Inc. (HGSI) -- Ignore unavailable to you. Want to Upgrade?

To: crete who wrote (265)	4/26/1999 5:22:00 PM
From: Elmer	Read Replies (1) \| Respond to of 1127

The burn rate has really accelerated. They lost $12 million last quarter and now have about $175 million left in cash and equivalents. So, they can continue for about 15 quarters at this rate without new funding. When I saw these numbers today, I realized that the risk profile has changed a lot on this stock. With the higher burn rate, they are betting the company on successful trials. If the results of the Phase II clinical trials, which I understand are coming this summer, aren't good, the market will probably kill the stock even if the underlying science is still valid. Somehow I always thought that this company would just collect royalties from Big Pharma and live happily ever after. But interestingly, they may have to find a merger partner if results aren't good. That would be a shame because investors under that scenario will never see the potential returns that this could generate. Here is hoping for good results.