Human Genome reports loss for 2nd quarter

Results called `in line' with expectations

Earnings

July 27, 1999|By Mark Guidera | Mark Guidera,SUN STAFF

Human Genome Sciences Inc. reported yesterday a net loss of $2.2 million, or 10 cents per share, on revenue of $14.8 million for its second quarter, which ended June 30.

By comparison, the Rockville-based gene sequencer and developer of genomics-derived medicines had net earnings of $1.2 million, or 5 cents a share, on revenue of $13.9 million in the corresponding period a year earlier.

In the first half of the year, the company said, its net loss increased to $14.5 million, or 63 cents a share, on revenue of $16.2 million.

In the first six months of 1998, the company had a net loss of $8.5 million, or 38 cents a share, on revenue of $15.9 million.

Human Genome's revenue comes entirely from research and development contracts with major pharmaceutical developers and a seed manufacturer.

The company attributed the increased losses in the second quarter and six months primarily to increased expenses for laboratory development of new drug candidates and to clinical trials of several experimental drugs it has developed from its gene database.

The company had $14.9 million in research and development expenses in the second quarter, compared with $11.5 million in the corresponding period last year.

In the first six months, R&D expenses rose to $28.3 million from $22.4 million in the 1998 period.

The company said operations of its new manufacturing plant contributed to higher expenses.

Steven C. Mayer, senior vice president and chief financial officer, said the financial results for the quarter and first half were "in line with management's expectations."

The company reported cash and short-term investments on hand of $262.5 million as of June 30.

That figure includes proceeds from a private placement last month of $100 million in convertible notes due in 2006. The company sold an additional $25 million in notes last week.

Pub Date: 7/27/99

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