Human Genome Sciences, Inc.’s (NASDAQ:HGSI) second quarter loss widened due to higher costs and declining sales. Human Genome Sciences, Inc. is a commercially focused biopharmaceutical company advancing toward the market with three products in late-stage clinical development.
Human Genome Sciences Earnings Cheat Sheet for the Second Quarter
Results: Loss widened to $80.7 million (42 cents per diluted share) from $56.9 million (loss of 30 cents per share) in the same quarter a year earlier.
Revenue: Fell 35.9% to $24.9 million from the year earlier quarter.
Actual vs. Wall St. Expectations: HGSI fell short of the mean analyst estimate of a loss of 41 cents per share. It fell short of the average revenue estimate of $29 million.
Quoting Management: “We are making good progress with the U.S. launch of BENLYSTA, and the HGS and GSK teams are working closely together to ensure that patients with systemic lupus who need BENLYSTA will have access to it,” said H. Thomas Watkins, President and Chief Executive Officer. “We are also very pleased to have received approvals to market BENLYSTA in Europe and Canada, and we look forward to working with GSK to make BENLYSTA available on a global basis.”
Gross margin shrank 46.4 percentage points to 26.2%. The contraction appeared to be driven by increased costs, which rose 72.5% from the year earlier quarter while revenue fell 35.9%.
The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 17 cents in the first quarter and by 7 cents in the fourth quarter of the last fiscal year.
Revenue has fallen for the past three quarters. In the first quarter, revenue declined 42.9% to $26.6 million while the figure fell 59.8% in the fourth quarter of the last fiscal year from the year earlier.
Competitors to Watch: GlaxoSmithKline plc (NYSE:GSK), Immunomedics, Inc. (NASDAQ:IMMU), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), Amgen, Inc. (NASDAQ:AMGN), Biogen Idec Inc. (NASDAQ:BIIB), AstraZeneca plc (NYSE:AZN), Merck & Co., Inc. (NYSE:MRK), Idenix Pharmaceuticals, Inc. (NASDAQ:IDIX), Vertex Pharmaceuticals Inc. (NASDAQ:VRTX), and Peregrine Pharmaceuticals (NASDAQ:PPHM).
(Source: Xignite Financials)