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Human Genome Sciences Inc. (HGSI) Readies for Lupus Testing Results After Phase III Completion

Some investors often wonder why others have come out of the latest economic conditions with a better looking portfolio then theirs. Yes, there are very few investors that found no hit to their portfolio or made a profit as a result of current conditions, but there are those that were less affected. Why? In past posts the philosophy of looking past the next quarter has been a common theme. One quarter or event does not make a poorly performing company if the company has a solid product mix and executes correctly.

An investor that can look past a bump or string of a few poor quarters, while recognizing why the quarters were poor, will be one that will find profit on the other side as the company work’s through its issues or a poor economy. With this in mind, the following company is about to announce test results and may find a $1.00 value after it announces. The thing to remember is that this company has a solid product pipeline for the near term and future options for other promising products. If it does happen to drop as a result of announced results, there could be real opportunity.

Human Genome Sciences Inc., a biotechnology company, works to provide biopharmacuitical products to the cancer, Lupus, inahalation anthax and hepatitus C issues facing the world today. The company has several products in phase III trials and several that are now just exiting this phase.

Although the investment community is roundly downgrading Human Genome Sciences on the basis of its Lupus testing results next week, there has been little recognition to the company’s positions in other biotechnology areas. The company continues to find success in phase III testing for its ABthrax ™product, its diabetes product and its cancer product where phase III testing is nearing a conclusion. Additionally, the company has several other products right behind these products. In a general sense, how the Lupus product fares will have little bearing on the company as its relationship with the US Government and its need for inhaled Anthrax treatments is a very nice contract that should hold for quite some time. This particular product is not quite ready from a testing standpoint but does seem to be on track for approvals in the near term.

Perhaps one of the more positive indicators that this company shows is its relationships with GlaxoSmithKline and Novartis International Pharmaceutical Ltd. Each of these organizations has entered into agreements with the company to arrive at solutions in the areas of coronary heart disease, diabetes and small molecule inhibitors. In an overall assessment, the company does appear to be very well rooted with products nearing or about to become near term prospects. It also has marketing relationships established to garner the revenue potential that these opportunities represent.

Those that look near term may not be all that interested in Human Genome Sciences. Those that look past the short term and one potential failed product, with emphasis on “potential”, might find a very nice surprise in their portfolio some day.

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