Human Genome Sciences Posts A Wider Loss In Q4 On Higher Costs; Backs FY08 Revenue Target - Update

(RTTNews) - Monday after the bell, biopharmaceutical company Human Genome Sciences, Inc. (HGSI | news | PowerRating | PR Charts ) reported a wider loss in the fourth quarter hurt by increase in research and development expenses. The company also maintained its revenue outlook for fiscal year 2008 and revised its cash burn and cash investments forecast.

Human Genome Sciences' net loss for the fourth quarter widened to $92.9 million or $0.69 per share from $66.9 million or $0.50 per share in the same quarter of the previous year. On average, seventeen analysts polled by First Call/Thomson Financial projected a loss of $0.49 per share.

Recent quarter loss included $16.9 million or $0.13 per share in expenses related to the licensing and collaboration agreement entered into with Aegera Therapeutics.

Research and development expenses for the fourth quarter surged to $87.3 million from $48.5 million in the same quarter a year before.

Total revenues for the fourth quarter were $12.5 million from $10.0 million in the comparable quarter of the earlier year. Fifteen analysts' average revenue projection was $11.37 million.

Recent quarter revenues included $8.9 million recognized from the Albuferon agreement with Novartis and $1.6 million recognized from the LymphoStat-B agreement with GSK.

Loss from operations for the fourth quarter was $90.9 million, wider than $65.1 million in the equivalent quarter of the prior year.

Total costs and expenses for the fourth quarter of $103.4 million were higher than $75.2 million in the same quarter of last year. Net investment expenses grew to $2.0 million from $1.8 million in the year-ago quarter.

For the fiscal year 2007, Human Genome Sciences' net loss of $262.4 million or $1.95 per share was wider than $251.2 million or $1.91 per share in the previous year. Sixteen analysts, on average, expected a loss of $1.76 per share.

Research and development expenses for the fiscal year increased to $245.7 million from $209.2 million in the earlier year.

Total revenues for the fiscal year were $41.9 million, up from $25.8 million in the preceding year. Sixteen analysts, on average, anticipated the company to report revenues of $40.70 million.

Looking ahead, Human Genome Sciences still expects fiscal year 2008 revenue to increase from $42 million in 2007 to $160 million or higher in 2008, including $100 million to $120 million from ABthrax product sales in late 2008. Sixteen analysts, on average, expect the company to report revenues of $160.52 million.

The company now expects net cash burn of $135 - $155 million, compared to its prior estimate of $180 - $200 million. The company raised its cash investments outlook to $450 - $470 million from its previous expectation of $400 - $420 million.

HGSI closed Monday's regular trading session at $6.52, up 22 cents or 3.49%. In the extended hours trading, the stock gained a penny or 0.16% to trade at $6.53.

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