Human Genome Sciences, Inc (HGSI)

[chmcnfunds]

The Appeal Of Human Genome Sciences While It's Still Under $10
April 4, 2012

The success of a biotech stock is based on much more than just a positive clinical trial or potential cure for disease. As the market grows, the desire for safe, effective treatments also grows. This is why smart investors have their eye on the aging population of the more than 76 million baby boomers in the country. Their health concerns are the driving force behind research and development at many biotech companies. Focusing on the health concerns of this generation helps you make savvy investment decisions. I believe several companies, including Human Genome Sciences (HGSI), is one of the companies poised to make a big splash in 2012, due to its focus on treatments that will affect the baby boomer generation.



The company reached a 52-week high of $30 per share, but plummeted as low as $6 per share in the last year. Just over a year ago, HGSI released Benlysta, a treatment for adult patients with active systemic lupus who are currently receiving standard therapy. Benlysta was the first drug approved to treat lupus in more than 50 years. The company also has financial rights to a number of GlaxoSmithKline (GSK) products. Even with the significant drop in price, HGSI should still be considered a smart investment, particularly because of its relationship with GlaxoSmithKline.

Type 2 Diabetes

In addition to Benlysta, HGSI, in conjunction with GlaxoSmithKline, saw successful results from phase 3 trials of a drug intended to treat Type 2 diabetes. An April 3, 2012 news release provided more information about the phase 3 trials, showing seven of its eight Harmony Phase 3 Trials were successful. Albiglutide was created by HGSI using its proprietary albumin-fusion technology, but was licensed to GlaxoSmithKline in 2004. However, HGSI is entitled to fees and milestone payments that could amount to as much as $183 million, in addition to single-digit net royalties on worldwide sales if Albiglutide is commercialized.

Obesity

With its latest phase 3 trials a success, HGSI is poised to make a big jump, making it a wise investment, especially for those who want to be a part of the biotech stock surge. Pharmaceutical and biotech stock is closely tied to the future of healthcare and the more severe a health crisis there appears to be, the more likely a stock price is to rise.
____________________________________________________
http://seekingalpha.com/article/478301-the-appeal-of-human-genome-sciences-while-it-s-still-under-10

HGSI