As long as it maintains what we see as its competitive advantage in the proteomics industry, we intend to hold through any such bad times. We are paying for the pipeline . The main reason that we like HGS is that it has one of the most promising pipelines in the industry. That's more than any other company that we know of. With its drug pipeline and the possibilities for future royalties from its data, HGS is well-positioned should proteomic drug discovery meet its suggested potential.
Nothing here is assured, however.
Pipelines can rupture. If HGS's early drugs get rejected, revenue and profits will sink even further down on the horizon, and could disappear entirely. For more information about our decision to buy HGS, see our Break Down . If you want to embark on the search for other biotech stocks with great potential but don't feel that you have an understanding of the industry, enroll in our Biotechnology Seminar , which starts October 16. If you'd like to express your opinion about this purchase and hear what other Fools have to say, stop and sit a while on the Rule Breaker Companies and Human Genome Sciences discussion boards.