NEW YORK, Feb. 20 - Incyte reported a fall-off in fourth-quarter revenue atop shrunken R&D spending and a narrowed net loss.
For the period ended Dec. 31, total revenue fell to $21.1 million from $54.8 million one year ago. Incyte blamed the slide on a soft biotech market and reduced R&D budgets among its customers.
R&D spending also took a hit in the fourth quarter, falling to $33.5 million from $50.5 million year over year. After undergoing a massive restructuring that cost 259 people their jobs last November, Incyte now has around 150 scientists devoted to drug discovery, the company said.
Still, despite the revenue shortfall and $35.7 million restructuring charge that accompanied the layoffs, net loss narrowed to $67.5 million, or $1.00 per share, from $145.2 million, or $2.77 per share, year over year.
Incyte said that as of Dec. 31 it had approximately $429 million in cash, cash equivalents, and marketable securities available for cash. The company, which said it revenues this year would be between $50 million and $70 million, expects to burn through between $109 million and $124 million.
Separately yesterday, Incyte said it had finally acquired Maxia Pharmaceuticals. Maxia, which has only 28 employees, is developing small molecule treatments for chronic diseases like diabetes, hyperlipidemia, and cancer, and has several lead compounds in preclinical development. Incyte is particularly interested in its success with small molecule inhibitors of protein phosphatases, said Incyte CEO Robert Stein when the plan to acquirewas announced in November.
Incyte acquired the San Diego-based concern for up to $28.3 million in cash and stock, plus up to $14 million in future milestone payments. The firm will then become a subsidiary of Incyte.