Albuferon is a long-acting investigational treatment for chronic hepatitis C, and is being developed by HGS and Novartis under an exclusive worldwide co-development and commercialization agreement entered into in June 2006. In March 2009, HGS reported that Albuferon met its primary endpoint of non-inferiority to Pegasys (peginterferon alfa-2a) in ACHIEVE 1, the second of two Phase 3 trials in chronic hepatitis C. Albuferon also met its primary endpoint of non-inferiority to peginterferon alfa-2a in ACHIEVE 2/3, for which results were announced in December 2008. The results of both Phase 3 trials demonstrate that, with half the injections, 900-mcg Albuferon achieved efficacy comparable to peginterferon alfa-2a, with a positive safety profile. The filing of global marketing applications for Albuferon is planned for fall 2009. Assuming licensure by the FDA and other regulatory agencies, HGS believes that Albuferon could become a market-leading treatment for chronic hepatitis C.

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