HGSI Will Take Massive Hit If Albiglutide, Darapladib Fail
Human Genome Sciences (HGSI) has fallen 71% in share price since last year. It has only one profitable lupus drug on the market right now called Benlysta to keep the company moving but has been in the red since 2010. The pipeline is not looking too promising either. Originally providing orders of Raxibacumab to the Strategic National Stockpile for around $300 million, Human Genome Sciences had its government funding lifted from its anthrax treatment drug Raxibacumab, and has been sliding ever since.
Two drugs in its pipeline are currently in phase 3 clinical trials and can be expected to produce the results towards the end of the year or the beginning of 2013. Unfortunately Albiglutide, a type 2 diabetes treatment in phase 3, will have much competition with many other effective diabetes drugs. It cannot be expected to generate anything more than mediocre sales; that is, if it even gets FDA approved. Research is also going into four other drugs on the pipeline in phase 1 clinical trials, which involve cancer, lupus and vasculitis treatments. The fact that Human Genome Sciences is only making a profit from one FDA approved drug on the market and trying to fund seven separate drug trials, leaves me entirely doubtful. Two of the drugs (Raxibacumab and Albiglutide) already have massive competition with companies producing more widely known and effective drugs for the same illnesses. I see no upside to Human Genome Sciences’ current situation and expect stock to continue to fall or stay the same throughout the next year. To continue reading, click here.