Based on $61.7M first 9 months, and a repeat of $22.7M for 4Q puts them at $84.4M for the year, not bad from $39M last year. I would expect a further increase for 4Q revenues as one would expect Organon to start paying in the Q, along with SKB for their license. Also, one of the deals from earlier in the year became effective around this time of the year.
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March 6, 1997 -- Palo Alto, California
Incyte Pharmaceuticals, Inc. (Nasdaq: INCY) announced today the extension of an existing three-year genomic database partnership with Hoechst Marion
Roussel to more than five years, upon the closing of a joint venture between Hoechst Marion Roussel and ARIAD Pharmaceuticals, Inc. (Nasdaq: ARIA).
Concurrent with the establishment of the joint venture, the Hoechst-ARIAD Genomics Center, LLC, ARIAD will purchase a license to Incyte's LifeSeqr
database, and the joint venture will be added as an installation site.
Under the terms of the agreements, Hoechst Marion Roussel, ARIAD, and the Hoechst-ARIAD Genomics Center, LLC, will license Incyte's LifeSeq
gene sequence and expression database. Incyte will receive access fees from both Hoechst Marion Roussel and ARIAD in addition to receiving potential
milestone payments and royalties on the sale of products by any of the three entities. The database installation for ARIAD and the joint venture is expected
by September 1997. Financial terms were not disclosed.
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Thus, even with no further deals signed that contribute revenue this Q, I would expect the revenue & EPS to still go up nicely this next and following quarters. Also, keep in mind that INCY deals tend to generate a lot of cash flow from the extras that they charge the Pharmas for additional services well beyond what the contract annual minimums are stated at, which is always gravy to the bottom line.
As far as short term weakness goes, that is a hard one to guess as this has always been a volatile stock. It tends to be very volume dependent and goes up on higher volume and down when the volume dries up after a news release is off the radar screens. But, you just never know when they are going to do a deal. And, the split will make some people happy. Of course one guaranteed way for it to go up over the short term is for me to sell some shares of it.
Rman |
