ROCKVILLE, Md., Jan. 10 /PRNewswire-FirstCall/ -- Human Genome Sciences, Inc. announced today that it has received a $5 million payment from its collaborator, GlaxoSmithKline (GSK), related to GSK’s filing of an Investigational New Drug (IND) application to begin Phase 1 clinical trials of GSK716155 (formerly known as Albugon) for potential use in the treatment of diabetes. Human Genome Sciences will recognize the $5 million as revenue in the fourth quarter of 2005.
The payment was made pursuant to an agreement with GSK reached in October 2004, under which GSK acquired exclusive worldwide rights to develop and commercialize GSK716155 (albumin-glucagon-like peptide-1, GLP-1) for all human therapeutic and prophylactic applications.(1) Human Genome Sciences received an upfront fee and is entitled to significant clinical development and commercial milestone payments that could amount to as much as $183.0 million, as well as additional milestones for other indications developed. The company received a total of $12 million in milestones in 2005. Human Genome Sciences will also receive royalties on the annual net sales of any products developed and commercialized under the agreement. Human Genome Sciences is responsible for the manufacture of GSK716155 for Phase 1 and 2 clinical trials.
H. Thomas Watkins, President and Chief Executive Officer, Human Genome Sciences, Inc., said, “We are pleased that GSK has chosen to advance GSK716155 to clinical development. It is our hope that this drug may ultimately offer a new option in the treatment of diabetes. We view the agreement as a strong indication of the potential of our albumin-fusion technology, and we look forward to continuing our support of GSK on this important program.”
GSK716155 was created using Human Genome Sciences’ proprietary albumin fusion technology, which involves fusing the gene that expresses human albumin to the gene that expresses a therapeutically active protein. Research has shown that the fusion of therapeutic proteins to human albumin decreases clearance and prolongs half-life. GSK716155 results from the genetic fusion of human albumin and GLP-1.
Human Genome Sciences is a company with the mission to discover, develop, manufacture and market innovative drugs that serve patients with unmet medical needs, with a primary focus on protein and antibody drugs.
For more information about Human Genome Sciences, please visit the company’s web site at www.hgsi.com. Health professionals interested in more information about clinical trials involving Human Genome Sciences products are encouraged to inquire via the Contact Us section of the web site, www.hgsi.com/products/request.html, or by calling (240) 314-4400, extension 3550.
HGS and Human Genome Sciences are trademarks of Human Genome Sciences, Inc.
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on Human Genome Sciences’ current intent, belief and expectations. These statements are not guarantees of future performance and are subject to certain risks and uncertainties that are difficult to predict. Actual results may differ materially from these forward-looking statements because of the Company’s unproven business model, its dependence on new technologies, the uncertainty and timing of clinical trials, the Company’s ability to develop and commercialize products, its dependence on collaborators for services and revenue, its substantial indebtedness and lease obligations, its changing requirements and costs associated with planned facilities, intense competition, the uncertainty of patent and intellectual property protection, the Company’s dependence on key management and key suppliers, the uncertainty of regulation of products, the impact of future alliances or transactions and other risks described in the Company’s filings with the Securities and Exchange Commission. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today’s date. Human Genome Sciences undertakes no obligation to update or revise the information contained in this announcement whether as a result of new information, future events or circumstances or otherwise.
Footnote:
(1)(HGSI Press Release) Human Genome Sciences Announces Agreement with GlaxoSmithKline for Development and Commercialization of Novel Drug to Treat Diabetes. October 26, 2004.
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CONTACT: Jerry Parrott, Vice President, Corporate Communications,+1-301-315-2777, or Kate de Santis, Director, Investor Relations+1-301-251-6003, both for Human Genome Sciences, Inc.
Web site: http://www.hgsi.com/
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