HGS is a commercially focused biopharmaceutical company with a broad pipeline of novel drugs that includes three promising products in late-stage development, moving toward commercialization: Albuferon® in Phase 3 trials for hepatitis C, LymphoStat-B® in Phase 3 trials for systemic lupus, and ABthrax™ in late-stage development for inhalation anthrax.

Both Albuferon and LymphoStat-B are partnered with world leaders in the pharmaceutical industry – Novartis for Albuferon, and GlaxoSmithKline for LymphoStat-B. We are developing ABthrax under a contract with the U.S. Government. Right behind these three late-stage products is a high-potential mid-stage pipeline led by our TRAIL receptor antibodies for cancer – and including a number of products to which HGS has substantial financial rights in the GSK pipeline.

Our priority financial goal is to manage cash to take Albuferon and LymphoStat-B through Phase 3 development without the need to raise additional funds. We also plan to continue development of the next wave of product candidates in our pipeline, as well as the infrastructure required to complete our transformation into a commercial enterprise.

We are committed to excellence in our financial performance. Through a combination of tight spending control, increased revenues and clinical development cost-sharing, we are keeping net cash burn to a minimum. Our cash position remains strong, with more than $600 million in cash and investments as of the end of 2007.