HGS/GSK Agreement not disclosed

Human Genome Sciences and GlaxoSmithKline announced on October 26, 2004 an agreement under which GlaxoSmithKline has acquired exclusive worldwide rights to develop and commercialize Albugon™ (albumin-glucagon-like peptide-1, GLP-1), a drug currently in late-stage preclinical development by Human Genome Sciences for potential use in the treatment of diabetes.

Under the agreement, GlaxoSmithKline has acquired exclusive worldwide rights to Albugon for all human therapeutic and prophylactic applications. Human Genome Sciences will receive an upfront fee and clinical development and commercial milestone payments that could amount to as much as $183 million, and additional milestones for other indications developed. Human Genome Sciences will also receive royalties on the annual net sales of any products developed and commercialized under the agreement. Human Genome Sciences will be responsible for the manufacture of Albugon for Phase 1 and 2 clinical trials."

HGS did not disclose the license when they filed the press release or in the subsequent 10-K for 2004.