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Pegylated interferon available as a vaccine and ribavirin, which comes in pill form, are two of the most commonly used treatments for hepatitis C. Albuferon is being developed by Human Genome and Novartis under an exclusive worldwide development and commercialization agreement entered into in June 2006. Hepatitis C is the major reason for liver transplants in the United States, accounting for 1,000 of the procedures yearly.

The disease is responsible for 8,000 - 10,000 deaths annually. Some reports suggest that the number of HCV-infected people may be four times the number of those infected with the AIDS virus. According to the interim results from the Phase 2 trial of Albuferon in combination with ribavirin in patients with chronic hepatitis C who failed to respond to previous interferon alpha-based treatment regimens, the combination therapy was found to be safe, well tolerated and effective at doses up to 1800 mcg every two weeks.

The company also noted that in the Phase 2 non-responder study, after 48 weeks of treatment and at the final 24-week follow-up point, the overall rate of virus was reduced in 21% of the patients in the 900-mcg and 1200-mcg Albuferon treatment groups. Interim results from Phase 2b trial of Albuferon in combination with ribavirin in treatment-naive patients with genotype 1 chronic hepatitis C, suggest that the combination therapy of Albuferon with ribavirin was safe, well tolerated and showed robust antiviral activity in the patients. The company expects initiating Phase 3 trials of Albuferon in treatment-na?

ve patients before the end of 2006. HGSI is currently up $0.11 trading at $13.

31 on a volume of 2.15 million shares.