NEW YORK, May 5 - Incyte today reported first-quarter 2003 revenues of less than half that of the year-ago period, accompanied by widening losses. The company also said it is restructuring to separate its information business from its drug discovery activities.
Revenues for the quarter ended March 31, 2003, were $12.5 million compared to revenues of $29.0 million for the same period in 2002. Incyte attributed the decrease in revenues to "changes and continued softening in the genomic information market."
Incyte's operating expenses for the first quarter of 2003 increased to $66.8 million from $47.9 million last year. The company said this increase resulted primarily from its acquisition of Maxia Pharmaceuticals, which generated an in-process research and development charge of $28.1 million. Incyte's own R&D expenses for the quarter were down slightly for the quarter -- at $30.2 million compared to $33.7 million in the year-ago period.
The company's total net loss for Q1 2003 was $55.8 million, or $0.81 per share, compared to $13.4 million, or $0.20 per share, for the same period in 2002. Incyte attributed the increase in its net loss to the acquisition of Maxia and the reduction in revenues.
As of March 31, 2003, Incyte had $10.6 million in cash and cash equivalents compared to $22.9 million as of December 31, 2002. Cash and short-term investments totaled $376.2 million as of March 31, compared to $429.0 million at the end of December.
Incyte said its board of directors decided to separate the company's information product business from drug discovery and provide both groups with their own management teams. Lee Bendekgey, Incyte's executive VP and general counsel, will serve as acting general manager of the information products group.