Wednesday, July 14, 2010

HGSI Inks Supply Deal For Benlysta (STRONG BUY)

Recently, Human Genome Sciences Inc. (HGSI: 25.00 -0.29 -1.15%) and Switzerland-based company Lonza inked a supply deal for Human Genome’s potential blockbuster lupus drug candidate, Benlysta. The financial clauses of the agreement were not disclosed.
 
The deal with Lonza is aimed at providing future supplies for the lupus drug. Human Genome claims that its current manufacturing capacity is sufficient to ensure ample supply of Benlysta for the first few years following approval.
 
However, Lonza, a leading supplier of chemical and biotech items to the nutrition, hygiene, preservation, agro and personal care markets across the globe, has the ability to feed the production of Benlysta when Human Genome builds additional capacity.
 
Human Genome and GlaxoSmithKline plc (GSK: 36.35 +0.63 +1.76%) are co-developing Benlysta for treating patients suffering from systemic lupus erythematosus. The lupus candidate is currently under review both in the US as well as Europe.
 
We remind investors that Benlysta, a human monoclonal antibody that specifically recognizes and prevents the biological activity of the naturally occurring protein B-lymphocyte stimulator, met the primary endpoint in the BLISS-52 trial in 2009. Furthermore, Benlysta met the primary endpoint in BLISS-76 through 52 weeks in November 2009.
 
However, Benlysta did not prove to be more effective than placebo in the long term, according to the complete 76-week data from the BLISS-76 trial announced earlier this year. The two studies evaluated a total of 1,684 patients.
 
Benlysta, if approved, would be the first new lupus drug to be approved in 50 years. Lupus affects about 1.5 million people in the United States and 5 million people worldwide. We believe Benlysta has blockbuster potential.



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