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UPDATE: Incyte Meets 3Q Estimates, Revenues Up 47 Percent

NEW YORK, Oct 17 – Genomic information company Incyte Genomics reported Tuesday third quarter net losses of $7.6 million, or 12 cents per diluted share, compared with a net loss of $11.1 million, or 20 cents per diluted share, for the same period a year ago, meeting Wall Street expectations.

Consensus estimates expected the Palo Alto, Calif.-based company to post losses of 12 cents a share, according to a poll of 10 analysts conducted by First Call/Thomson Financial.

Revenues for the quarter surged 47 percent to $52 million compared with $35.4 million in the 1999 quarter.

Much of the revenue came from the company’s database subscriptions and partnerships—$39.8 million, compared with $28.1 million for the same period a year ago.

Despite Incyte’s meeting the Street’s expectations, traders knocked more than 6 percent off the company’s stock by afternoon trading. Analysts say this drop can be attributed to the market’s current downturn.  

“This is a market that’s pretty well-spooked in general. They probably would’ve needed to have beaten estimates by a lot more to get a boost today,” said Alexander Hittle, an analyst with A.G. Edwards who follows Incyte. “In this market environment, no news is bad news, and this is a no news earnings release—their business is proceeding as intended. But you’ve got to surprise and delight your shareholders when the market as a whole is going down.”

During the quarter, Incyte announced that Motorola and NEN would commercialize microarrays developed using Incyte proprietary genes. Under the terms of the agreements, Incyte will receive royalties on microarrays developed using Incyte technology and information and will provide a " click through" mechanism to Incyte's website for researchers to get information about Incyte's proprietary genes and to order clones and other products.

Also during the quarter, Incyte announced two partnerships with American Home Products (AHP). In July AHP licensed Incyte’s LifeSeq Gold for use in drug development, and earlier this month AHP licensed a disputed microarray-based gene expression technology for internal use.

In September, Incyte announced a deal with IBM, in which Big Blue will provide a platform that will allow researchers to query across multiple databases.   During the quarter, Incyte announced that Motorola and NEN would commercialize microarrays developed using Incyte proprietary genes.   

Under the terms of the agreements, Incyte will receive royalties on microarrays developed using Incyte technology and information and will provide a " click through" mechanism to Incyte's website for researchers to get information about Incyte's proprietary genes and to order clones and other products

The Scan

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