Human Genome Sciences reports flat revenues, narrowing loss gap Rockville firm attributes slide to payment decline

November 08, 1997|By Mark Guidera | Mark Guidera,SUN STAFF

Rockville-based Human Genome Sciences Inc. announced yesterday its third-quarter loss narrowed to $3.7 million, or 17 cents a share.

That figure is compared with a loss of $5.2 million, or 28 cents a share, for the three months ended Sept. 30 last year.

Revenue for the quarter was flat at $6.5 million. The company has licensing agreements with several major pharmaceutical companies for access to its library of human and microbial genetic codes.

For the nine-month period, however, Human Genome lost $12.9 million, or 61 cents a share, compared with earnings of $1.7 million, or 9 cents a share, last year as revenue shrank to $22.6 million from $33.4 million.

Human Genome attributed the 32 percent slide in revenue to a decline in payments due under licensing agreements with other companies.

Melvin D. Booth, president and chief operating officer for Human Genome, said that results for the quarter and the nine-month period were in line with management expectations as the company pursues its goal of becoming a fully integrated pharmaceutical company.

Human Genome is building a new plant where it plans to produce human proteins its research shows may be useful in developing two new drugs.

Booth also said the nine-month period was marked by a beneficial recasting of an agreement with drug giant SmithKline Beecham.

Under the new deal, Human Genome would be due royalties on any medical diagnostic products developed by SmithKline and based on Human Genome's research and technology, but which SmithKline licenses for marketing to another company.

Human Genome stock closed yesterday at $41, down $1.125.

Pub Date: 11/08/97

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