By Charles Craig

Human Genome Sciences Inc. received an undisclosed milestone payment from Roche Holding Ltd. for completing the DNA sequence of the genome for the bacterial pathogen Streptococcus pneumoniae.

Roche, of Basel, Switzerland, licensed rights the bacterium's genetic data in March 1996 and provided funding to Human Genome Sciences, of Rockville, Md., to complete the DNA sequence for the genome, which contains several thousand genes. The data are being used by Roche to identify molecular targets for new antibiotics to fight infections, such as pneumonia, meningitis, sinusitis and peritonitis, caused by the pathogen.

Craig Rosen, Human Genome Sciences' senior vice president for research and development, said financial details of the March 1996 agreement and the current milestone payment were not disclosed. The company also will receive royalties on marketed products.

Rosen said Roche's hold on the S. pneumoniae sequence data expires next year, after which Human Genome Sciences can offer non-exclusive licenses for the information.

Roche also negotiated a non-exclusive license to the genome sequence of another pathogen, Enterococcus faecalis, which was completed by Human Genome Sciences in May. The bacterium, which is a major cause of hospital-acquired infections, contains about 4,000 genes. Its genome sequence also will be used to identify targets for new antibiotics.

With the complete genomes of two pathogens, Rosen observed, Roche has the opportunity to hunt for drug targets common in both bugs.

Financial terms of the non-exclusive license for the E. faecalis genetic data were not disclosed. Human Genome Sciences received an up-front payment and will get royalties.

Bacterial resistance to current antibiotics has intensified the search for new drugs and boosted competition among genomics companies sequencing pathogens.

For example, Genome Therapeutics Corp., of Waltham, Mass., has developed a PathoGenome database containing E. faecalis and S. pneumoniae, along with Enterococcus faecium and Staphylococcus epidermis and other microbes whose identities have not been disclosed. In May, Genome Therapeutics signed Bayer AG, of Leverkusen, Germany, to a non-exclusive subscription.

Incyte Pharmaceuticals Inc., of Palo Alto, Calif., in 1996 created a microbial genome database called PathoSeq, which is offered to subscribers on a non-exclusive basis.

Human Genome Sciences, in association with its former partner, The Institute for Genomic Research, a non-profit organization in Rockville, Md., has been sequencing numerous other microbes, including Haemophilus influenzae, Staphylococcus aureus and Escherichia coli. H. influenzae was completed in 1995 and S. aureus in 1996.

In addition to selling the microbial genetic data, Human Genome Sciences is using the information for its own drug programs, such as development of vaccines in collaboration with MedImmune Inc., of Gaithersburg, Md.

Human Genome Sciences (NASDAQ:HGSI) closed Tuesday at $34.50, up $1. *