HGS Gains Cash with Facilities Transactions

Human Genome Sciences, Inc. (HGS) has signed a $425 million definitive agreement with BioMed Realty Trust, Inc. for the sale/leaseback of its large-scale manufacturing facility and for a new lease for its headquarters office and laboratories facility. The transactions are expected to add approximately $380 million in available cash for HGS operations, including $220 million in new cash and $160 million in cash that will be freed up by elimination of the cash restriction associated with the previous lease for the headquarters facility.

“This is the latest in a series of steps to strengthen our balance sheet and provide increased flexibility in the management of our cash resources. We are pleased to enter into this definitive agreement with BioMed Realty Trust,” said H. Thomas Watkins, president and chief executive officer of HGS. “We expect that both of our lead products—Albuferon for chronic hepatitis C and LymphoStat-B for lupus—will enter Phase III development by the end of this year, and this additional cash will support their rapid development.”

Alan D. Gold, president and chief executive officer of BioMed Realty Trust, said, “This transaction provides us with another tremendous opportunity as we increase our presence in one of our core target markets. These premiere buildings will be fully leased to a well-respected company that we believe has considerable growth potential and a promising product pipeline, adding to our solid tenant base. The land component affords us additional development capabilities in this highly desirable and rapidly growing location.”