Human Genome Sciences Gets GSK Milestone

Human Genome Sciences Inc. has received a $5 million payment from its collaborator, GlaxoSmithKline (GSK), related to GSK’s filing of an IND application to begin Phase I trials of GSK716155 (formerly known as Albugon) for potential use in the treatment of diabetes.

The payment was made pursuant to an agreement with GSK reached in October 2004, under which GSK acquired exclusive worldwide rights to develop and commercialize GSK716155 for all human therapeutic and prophylactic applications. Human Genome Sciences received an upfront fee and is entitled to significant development and commercial milestone payments that could amount to as much as $183 million, as well as additional milestones for other indications developed. The company received a total of $12 million in milestones in 2005. Human Genome Sciences will also receive royalties on the annual net sales of any products developed and commercialized under the agreement. Human Genome Sciences is responsible for the manufacture of GSK716155 for Phase I and II trials.

H. Thomas Watkins, president and chief executive officer, Human Genome Sciences, Inc., said, “We are pleased that GSK has chosen to advance GSK716155 to clinical development. It is our hope that this drug may ultimately offer a new option in the treatment of diabetes. We view the agreement as a strong indication of the potential of our albumin-fusion technology, and we look forward to continuing our support of GSK on this important program.”