HGS raising $310M after shares skyrocket

After enjoying a huge increase in its share price over the past week, Human Genome Sciences isn't wasting any time in capitalizing on its good fortune. The Rockville, MD-based developer plans to raise $310 million from the sale of 18 million common shares. And some of that money may be used to buy or invest in new technology, companies or products.

HGS shares skyrocketed from $3.32 a share to a recent close of $14.63 after the company announced that it had garnered positive, and completely unexpected, data from a clinical trial of its experimental lupus drug. And now that it has won back the hearts of investors--at least for now--the developer is in a position to raise some significant new funds.

HGS had a bit more than $370 million in cash and equivalents on June 30 and also won a $151 million contract for its anthrax therapy. The company says that in addition to investments and acquisitions, it may pay down debt and fund research and other operations. Analysts, meanwhile, are looking ahead to late fall, when HGS will be expected to release more lupus data.

- check out the announcement from HGS
- read the story from the Washington Business Journal