J.P. Morgan Maintains Human Genome Sciences (HGSI) Overweight Rating

J.P. Morgan analysts Cory Kasimov and Mona Ashiya reiterated their Overweight rating for shares of Human Genome Sciences, Inc. (Nasdaq: HGSI)

The two analysts believed that the failure of a recent Phase 2 non-small cell lung cancer trial would not have a significant impact on Human Genome Sciences finances or attractiveness as an investment.

Human Genome Sciences' Benlysta lupus treatment is still seen as the chief driver of the company's fortunes but with so few treatment options, the analysts believe it will be approved after a six month priority review.

The J.P. Morgan analysts wrote, "this randomized Phase 2 trial tested the combination of carboplatin/paclitaxel +/- HGS-ETR1, a monoclonal antibody against the TRAIL receptor 1 in ~105 previously untreated metastatic NSCLC patients. The 3-arm trial tested two doses of HGS-ETR1 (10 and 30mg/kg) in combination with carbo/tax q3wks. No difference in response rate or progression-free survival (PFS) was seen. Full data from the trial will be presented at a medical meeting in 2010. Of note, PFS data from the multiple myeloma trial are due in mid-2010 and the randomization stage of the HCC trial is anticipated by YE."