JMP Securities is a full-service investment bank that provides equity research, institutional brokerage and 
investment banking services to growth companies and their investors. They issued the following update on HGSI:
Human Genome Sciences, Inc.
HGSI - $7.17, $1,424M market cap
Liisa A. Bayko; +1 312 768-1785; lbayko@jmpsecurities.com
"Let the bidding begin GSK makes a move for Human Genome Sciences (HGSI); reiterate Market Outperform rating and $20 price target for HGSI . This morning, HGSI announced an unsolicited proposal from GSK to acquire HGSI at $13 cash per share. We remind investors that GSK and HGSI share in the profits for Benlysta, and HGSI has up to 30% rights to the drug candidate, darapladib, in an event driven Phase 3 study for coronary heart disease, which we expect to report data within 12 months, as well as a small royalty in abiglutide for diabetes. The launch of Benlysta has gotten off to a slow start but our market research suggests there is a potentially larger market for Benlysta amongst lupus patients for an subcutaneously delivered formulation, which is currently in Phase 3 development. Our price target of $20 is based on a risk adjusted discounted cash flow model based solely on contributions from Benlysta and so there could be significant upside to our model should darapladib have a positive read out in its Phase 3 study. HGSI has rejected the initial offer from GSK and has formerly initiated a process to find higher bidders for the company. In our view, the value proposition to GSK likely trumps those from other companies given the leverage it can gain from HGSI's sales and marketing efforts against Benlysta and potentially Darapladib."