Citi Provides Color on Human Genome Sciences

Citi provided color on Human Genome Sciences (NASDAQ: HGSI). In a research report published today, Citi commented on the company's testing of new products.

In the report, Citi states, “GSK is developing the drug and HGS is eligible to receive royalty payments. Our physician expert was highly critical of the drug because it was advanced to ph 3 based on unproven data, despite failing both co-primary endpoints in ph2. The physician expert also noted that malodor due to darapladib may ultimately limit the market acceptance. In our view, darapladib is a high risk drug candidate that is overlooked by HGS investors at this time. Thus, we view any success in the ph 3 program to be upside to expectations. Darapladib is a drug that acts on Lp-PLA2. The Lp-PLA2 enzyme plays a major role in the inflammation of plaques, putting them at risk of rupture, which may lead to heart attacks and strokes. We anticipate that ph 3 data will become available in 2013.”

At the moment, Citi has a Hold rating and a price target of $29 placed on the company's stock. On Tuesday, HGSI lost 1.36% of its value to end the day at $24.62.