We have added a pipeline value for Human Genome Sciences (HGSI). We currently value its 5 and 10-year pipeline at $9.15/share and $16.72/share, respectively. Our probability weighted pipeline values are based off of numerous drugs HGSI has in its pipeline, which are primarily being pursued in co- development agreements. HGSI’s two most advanced programs are Albuferon (Novartis) for hepatitis C (HCV) and LymphoStat-B (GSK) for systemic lupus erythematosus (SLE). (For more information on Albuferon and the HCV market, please see our HCV indication report. For more information on LymphoStat-B and SLE please see our SLE indication report.)

Based on Albuferon’s revenue outlook and the potential milestone payments HGSI may receive from Novartis ($415 million remaining), Albuferon currently represents 76% of our 5-year value for HGSI, while LymphoStat-B accounts for an additional 14%. As such, news flow from these two programs will be vitally important to the company. Please see our HGSI catalyst calendar for more detail on expected events.

HGSI is involved in several earlier stage drug candidates including: Darapladib (GSK; phase II/III) for atherosclerosis; GSK716155 (GSK; phase II) for type II diabetes; GW649868 (GSK, phase II) for insomnia; HGS004 (phase I) for HIV/AIDS; HGS-ETR1 (GSK; phase II) for multiple myeloma, non-Hodgkin’s lymphoma (NHL), non-small cell lung cancer (NSCLC) and colorectal cancer.

While none of these candidates make up more than 10% of our 10-year pipeline value individually, they combine for 37% of it. Hence, while these programs all still carry a low absolute likelihood of approval (LOA), their continued advancement will play a significant role in HGSI’s future.

For a more detailed overview of HGSI and the drugs mentioned, please contact your sales representative.