Human Genome Sciences Beats Third-Quarter Expectations
By Ilan Tsapovski
Editorial Assistant
11/7/00 5:50 PM ET
Human Genome Sciences (HGSI:Nasdaq - news) reported a narrower-than-expected loss for the third quarter, beating analysts' estimates by a penny.
The Rockville, Md., biotechnology company lost $13 million, or 12 cents a share, excluding a one-time write-off related to an acquisition in September. In the same period a year ago, Human Genome lost $9.7 million, or 11 cents a share. Twelve analysts expected the company to lose 13 cents a share for the quarter, according to First Call/Thomson Financial.
Total revenue for the quarter rose to $8.1 million from $7.4 million for the year-ago period.
Source: www.thestreet.com (http://www.thestreet.com)
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Human Genome Sciences Loss Widens
By Deena Beasley
LOS ANGELES (Reuters) - Human Genome Sciences Inc. (NasdaqNM:HGSI - news) on Tuesday said its third-quarter loss widened, but came in slightly ahead of Wall Street estimates, as the prominent biotechnology firm plowed more money into trials of its expanding pipeline of experimental drugs.
For the quarter ended Sept. 30, the Rockville, Maryland-based company reported a pro forma net loss of $13 million, or 12 cents a share, which excludes a one-time write-off of $134.1 million, or $1.21 per share, resulting from the firm's acquisition in September of Principia Pharmaceutical Corp. That compares to a net loss of $9.7 million, or 11 cents a share, for the year-earlier period.
Wall Street analysts had on average expected the company, which has built one of the largest databases of human genes in the industry, to post a loss of 13 cents a share for the quarter, according to First Call/Thomson Financial.
HGS researches and develops gene-based compounds for treating and diagnosing human diseases.
``This is not really an earnings story. Excitement about Human Genome is based on progress in their pipeline, and they are really making progress,'' said Matt Geller, an analyst at CIBC World Markets.
The company is not yet ready to file for regulatory approval of any of its development-stage products, but HGS has ''far more products in the clinic than all the other genomics companies put together,'' the analyst said.
Revenues from the firm's collaborations with other drugmakers rose to $8.1 million from $7.4 million in the 1999 quarter, while its own research-and-development costs jumped to $23.5 million from $15.3 million in the 1999 quarter.
During the quarter, mid-stage tests showed the company's treatment for large, painful sores worked. The company said it plans for a large safety and efficacy test for the treatment -- Repifermin. The drug is also undergoing mid-stage trials for another use, treatment of a common form of inflammatory bowel disease called active ulcerative colitis, and for a third use.
The quarter also saw the company's board approve a two-for-one stock split and file a shelf registration to sell periodically up to $1 billion in equity and debt, and of the company's shares, leaving the company with 112 million shares.
Shares of HGS rose $2-7/8 to $95-15/16 on Tuesday on the Nasdaq before the earnings announcement and were trading slightly lower at 94-7/8 in after-hours trading.
``We are pleased that our recent efforts have brought several HGS drugs closer to the patients who need them. At the same time, we focused on enabling scientists at HGS and our partners to discover and develop additional drugs that may aid more patients to lead healthier, more active lives,'' William Haseltine, the company's chief executive officer, said in a statement.
The company said it will hold a conference reviewing its third-quarter results on Wednesday.
Source: http://dailynews.yahoo.com/h/nm/20001107/bs/humangenome_earns_dc_2.html
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