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Newly Restructured Incyte Posts Flat Revenue, Widened Loss in Q4

NEW YORK, Feb. 13 - Incyte Genomics on Wednesday reported widened loss over flat revenue in the fourth quarter as it gathers momentum to become a full-fledged drug developer.

 

Incyte said that killing off its custom genomics database business caused revenue to dip to $54.8 million in the period in the current quarter compared with $55.4 million in the year-ago period.

 

R&D spending in the period ended Dec. 31 dipped accordingly, to $50.5 million from $53.3 million last year. Despite this, net loss in the quarter ballooned to $14.8 million, or $.22 per share, compared with $7.4 million, or $.11 per share year over year.

 

Incyte had approximately $508 million in cash, cash equivalents, and marketable securities as of Dec. 31.

 

The company, which recently underwent a dramatic transition from database provider to fledgling pharma hound, said it expects to generate between $130 million and $150 million in the current year.

 

It also said it plans on moving a portion of its business into "collaborative or other kinds of agreements," which it warned would reduce near-term revenue and might make quarterly revenue "irregular."

 

Incyte said it anticipates expenses from its information business to reach between $125 million and $130 million in t 2002, and that its nascent drug-discovery arm will spend between $85 million and $90 million during the year.

 

It says it is bracing for a net loss of between $65 million and $85 million this year.

 

"I want to emphasize that we are moving aggressively into the therapeutic discovery and development arena," Paul Friedman, Incyte's CEO, said in a statement. "Because we are using our information assets differently--specifically the database and our intellectual property--we will have lower near term revenues. We plan to use a portion of Incyte's database subscription and intellectual property licensing business to facilitate co-development or other types of agreements," he explained.

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