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Human Genome Sciences Announces Fourth-Quarter And Full-Year Financial Results And Key Developments

Stock quotes in this article: HGSI 

Human Genome Sciences, Inc. (Nasdaq: HGSI) today announced financial results for the quarter and full year ended December 31, 2011, and provided highlights of recent key developments.

“The approval and launch of BENLYSTA for systemic lupus in 2011 brings Human Genome Sciences closer to our long-standing goal of achieving profitability and sustained growth into the future,” said H. Thomas Watkins, President and Chief Executive Officer. “We have seen steady quarter-to-quarter progress with BENLYSTA sales, and we believe BENLYSTA is on its way to playing a major role in improving the standard of care for SLE patients.”

FINANCIAL RESULTS

HGS reported revenues of $131.0 million for the year ended December 31, 2011, compared with revenues of $157.4 million for 2010. Revenues for 2011 included $52.3 million recognized from sales of BENLYSTA; $52.5 million recognized from sales and deliveries of raxibacumab to the U.S. Strategic National Stockpile; and $22.0 million recognized from manufacturing and development services other than raxibacumab. The decrease in revenues for 2011 reflected $82.8 million recognized from the ZALBIN agreement with Novartis in 2010.

The Company reported a net loss for 2011 of $381.1 million ($1.97 per share), compared with a net loss of $233.2 million ($1.24 per share) for 2010. The increase in net loss was primarily due to increased selling, general and administrative expenses and increased commercial collaboration expenses related to the commercialization of BENLYSTA, partially offset by higher product sales revenue.

As of December 31, 2011, cash and investments totaled $881.4 million, of which $801.2 million was unrestricted and available for operations. This includes $429.3 million in net cash from the Company’s successful public offering of Convertible Senior Notes completed in November 2011. This compares with cash and investments totaling $933.4 million as of December 31, 2010, of which $853.9 million was unrestricted and available for operations.

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