Human Genome Sciences reports $2.6 million profit in 2nd quarter Biotechnology

July 26, 1996|By Mark Guidera | Mark Guidera,SUN STAFF

Buoyed by licensing fees it was paid for rights to discoveries about the structure of human genes, Human Genome Sciences Inc. of Rockville reported yesterday it turned a profit in the second quarter of $2.6 million on revenues of $13.1 million.

The company's second quarter, which ended June 30, had a much different bottom line than its profit picture during the same period last year, when the company reported a net loss of $5 million on revenues of $5 million.

Human Genome said yesterday that the majority of its revenues in the second quarter came from licensing payments from Schering-Plough Corp., the U.S.-based pharmaceutical firm, and Synthelabo, a French pharmaceutical company.

Human Genome recorded $12 million in initial annual license and research fees during the second quarter from deals with those two companies. In June, Human Genome and SmithKline Beecham struck a research agreement to work on new disease therapies with Schering and Synthelabo.

The Rockville-based gene research company also has an agreement with Schering-Plough Corp. in the field of gene therapy.

For the six month period ending June 30, Human Genome recorded a profit of $6.9 million, on revenues of $27 million. During the same period last year, it posted a net loss of $11 million on revenues of $5 million.

Melvin D. Booth, president and chief operating officer, said revenue from the company's collaborations underscored "the power of genomic technology, as applied to drug discovery, to open broad new frontiers in medicine."

Pub Date: 7/26/96

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