Human Genome (HGSI) Second Successful Trial Sets Stage For Benlysta Approval

November 2, 2009 11:05 AM EST

Human Genome Sciences Inc. (Nasdaq: HGSI) stock is soaring, up nearly 35 percent in early market trading, after announcing the success of its experimental lupus drug, Benlysta in a second clinical trial. Pending approval, this will be the first breakthrough treatment for the disease in 50 years. The trial data was announced with partner GlaxoSmithKline (NYSE: GSK).

While the results in the second trial were not as convincing as those from the initial test, Human Genome is expecting to obtain approval to start producing the drug.

"This is a pivotal moment in lupus research," said Margaret Dowd, president of the Lupus Research Institute.

According to analysts the drug could be worth a potential $3 billion as for Human Genome and Glaxo, the partner company for the production of Benlysta, which would open the companies up to a market of 5 million people worldwide who suffer from the disease.

Goldman Sachs analysts expect the new drug to have a $4.3 billion earning potential upon approval. The news of the effectiveness of the higher dose will drive up the price of the stock according to Goldman, which maintains its Buy rating and $24 price target for Human Genome.

Analysts at Leerink Swann raised their price target on Human Genome Sciences from $30 to $40, saying that they see 95 percent probability of approval with a potential launch in the second-half of 2010.

Human Genome is currently up to $25.19, a jump of 34.78 percent.

Related Categories

Analyst Comments
FDA
Momentum Movers

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?