If Only Human Genome Sciences Could Be Cloned By Nadine Wong Special to TheStreet.com 6/13/01 1:30 PM ET

The year 2000 was pivotal for biotechs because the first draft of the sequence of the human genome was completed, and that propelled biotechnology share prices to unseen levels.

And the optimism surrounding the human genome was genuine. Armed with the sequence in hand, big pharmaceutical companies and biotechs are tackling chronic diseases with new drugs, some extracted from the sequence itself. Many firms are trying to benefit, and Human Genome Sciences (HGSI:Nasdaq - news - commentary) is one worth considering.

Why? Two reasons.

First, all of the rights to Human Genome Sciences' database and technology will revert back to the company at the end of this month. A nonexclusive agreement signed by GlaxoSmithKline, (GSK:NYSE - news - commentary), the Japanese firm Takeda Chemicals, Merck (MRK:NYSE - news - commentary), Sanofi-Synthelabo and Schering-Plough (SGP:NYSE - news - commentary) will expire, leaving those companies without access to the information.

That could provide an opportunity for Human Genome Sciences to renegotiate or expand agreements for this valuable asset. Thus, there could be a string of announcements from HGS as its genomic partners scramble to extract information from the database before losing access over the coming quarter. As a result, Human Genome Sciences could make lucrative deals that would allow it to share in profits and receive milestone payments and royalties for any drugs developed by its partners through the database.

Second, HGS has several biological compounds in clinical trials.

Repifermin is in a Phase II-B clinical trial for the treatment of venous ulcers, and is also being evaluated for the treatment of chemotherapy-induced dry mouth and for inflammatory bowel disease.

Then there is Mirostipen, a drug in Phase II trials that has the potential to limit damage caused to blood-forming tissues and the immune system by chemotherapy and radiotherapy. B Lymphocyte Stimulator, in a Phase I trial for patients, activates the immune system. Albuferon, which is in Phase I trials, unites albumin and interferon alpha to treat patients with hepatitis C. And Albutropin, a long-acting growth hormone, was recently cleared by the Food and Drug Administration to begin Phase I clinical trials in adult patients.

With regards to the last two drugs, HGS purchased technology that gave the company the ability to create human therapeutic proteins that remain in the body for two to three weeks, instead of minutes, hours or days. So, Albuferon and Albutropin may be more convenient for patients to take than therapies that last for only a short period.

There is strength in biotechs, and for an investor, that means opportunity. Wall Street has projected a big range for Human Genome Science's targeted 12-month share price, from as low as $50 to as high as $150, with a median target of $90. And with the market behaving the way it has lately, you can buy or hold, or be a short-term player and take advantage of the momentum. With HGS, there are plenty of ways to invest.

Send letters to the editor to letters@realmoney.com.
Read our conflicts and disclosure policy.
Order reprints of RealMoney.com articles.	Top
Research Now on CSFBdirect HGS Get a FREE Handspring™ Visor™ from CSFBdirect.

RELATED STORIES
	Biotech Sage Gilead Is Worth the Wait 6/6/01 2:20 PM ET Forget about the Prudential downgrade. This biotech will take time to be profitable, but it'll be worth it. Biotech Sage Batter Up With Biotech Plays 5/30/01 12:05 PM ET Cephalon and Celgene might have the potential to score with investors. Biotech Sage Gene Logic Has It 5/24/01 12:07 PM ET There is considerable interest in what this genomic company has to offer.

ONLINE INVESTING Get a FREE Handspring™ Visor™ from CSFBdirect. CREDIT CARD NextCard Visa APRs as low as 2.99% Intro! Click NOW to apply BANKING Get a $50 bonus from NetBank.