Human Genome Sciences Inc. (HGS) said Friday itcompleted a public offering of 2.8 million shares pricedat $21.50 per share, resulting in gross proceeds of $59.1million.
The Rockville, Md., genomics company now has about17.9 million shares outstanding. Proceeds from theoffering _ together with the $64.2 million it reported onJune 30, 1995, and an expected $25 million milestoneexpected from a collaborator _ should last HGS up tothree and one-half years, more if additional revenuescome in, said Nancy Broadbent, the company's seniorvice president and chief financial officer.
Underwriters Lehman Brothers, Bear Stearns & Co. Inc.and Smith Barney Inc., all of New York, have an optionto purchase 412,500 shares to cover overallotments.
"The primary use of the funds will be to expand andaccelerate development of proprietary product candidatesfor HGS and its collaborators," Broadbent said. "We areworking on a number of interesting candidates, but it'stoo early to talk about them."
The company's stock (NASDAQ:HGSI) lost 9 percentFriday, or $2.25, to close at $21.75 per share. The stockclosed at $24.25 on Aug. 28, 1995, when HGS announcedit registered the shares.
HGS' primary collaboration, potentially worth $125million, is with SmithKline Beecham, of Philadelphia.HGS is developing leads through its gene-sequencingefforts. SmithKline has first rights to develop drugs frommuch of the research. Last April, terms were amended toallow HGS more opportunity to develop its owncandidates, or license them out.
Broadbent said HGS essentially has satisfiedrequirements for the $25 million milestone payment duein January. The conditions relate to HGS havingsequenced a certain number of partial gene sequences,and it having 10 full-time employees working on theSmithKline Beecham projects this year. n
-- Jim Shrine
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