While I also like CRA is like INCY much more so as a LT investment.
INCY has been in the gen-database business much longer and 19 of the 20 largest drug companies subscribe their database.
incyte.com
This gives INCY not only the current subscription fees, but even more importantly a small royalty on every drug that is being developed with their database. A while ago, the INCY CEO stated in a CC, that half of Astra-Zeneca's current pipeline is developed with INCY data. If this is true for all the 18 other drug companies working with INCY databases, this could add up to hundreds of millions $ in cash royalties per year.
I also consider it important,that VRTX, a fully integrated biotech has chosen INCY instead of CRA.
While I consider CRA a viable competitor, I prefer INCY as an investment, because of a 5 year headstart in business development, potentially very valuable genomics IP, and more "downstream genomics" activities.
That said, both have an extremely strong balance sheet - CRA has about 1B$ and INCY a cool 700M$ in cash. OK,everything IMO. (I own INCY of course). |
