Incyte Reports Second Quarter Results
Tuesday July 14, 4:00 pm Eastern Time
Company Press Release
SOURCE: Incyte Pharmaceuticals, Inc.
PALO ALTO, Calif., July 14 /PRNewswire/ -- Incyte Pharmaceuticals, Inc. (Nasdaq: INCY - news) today reported net income of $5.2 million or $0.18
per diluted share for the quarter ended June 30, 1998, compared to $1.3 million or $0.05 per diluted share for the same period in 1997. For the six months
ended June 30, 1998, Incyte reported net income of $8.8 million or $0.30 per diluted share compared to $1.7 million or $0.07 per diluted share for same
period in 1997. The financial statements for prior periods have been restated to reflect the January 1998 acquisition of Synteni, which was accounted for as
a pooling of interests.
For the quarter ended June 30, 1998, revenues increased 54% to $33.1 million from $21.4 million for the quarter ended June 30, 1997. Revenues were
$63.5 million for the six-month period ended June 30, 1998, an increase of 61% from the $39.4 million reported for the same period in 1997. Operating
expenses increased 40% to $28.8 million for the quarter ended June 30, 1998, compared to $20.6 million for the same period in 1997. For the six-month
period ended June 30, 1998, operating expenses increased 46% to $56.3 million, compared to $38.6 million for the same period in 1997.
In a separate press release, Incyte announced today that it has expanded its relationship with Novartis to include access to Incyte's microarray technology.
Previously, Incyte announced its first large-scale high-throughput microarray agreement with Monsanto. This agreement provides Monsanto with the ability
to analyze up to 500 million gene expression data points from custom and pre-fabricated microarrays containing genes from Incyte's proprietary databases,
as well as from Monsanto's own databases. These two agreements strengthen Incyte's position in the emerging market for microarray-based information.
Incyte is making significant progress in expanding its microarray product line through the development of proprietary microarrays designed using genes from
Incyte's various genomic databases. Incyte plans to release six microarrays containing up to 60,000 Incyte proprietary human gene sequences, two of which
have already been completed. Disease specific microarrays available from the LifeSeq(R) gene sequence and expression database include, a human
secretory/ cancer microarray containing proprietary signal peptide and cancer-related clones, and a human blood and inflammatory disease microarray. The
first microarray containing genes from rat liver and kidney tissues selected from the ZooSeq(TM) research animal database is now available for studies in
pharmacology and toxicology. A second microarray focusing on rat CNS tissues is under development. For scientists working in the field of anti-infectives,
Incyte is creating one microarray containing the Staphylococcus aureus genome and a second containing the Candida albicans genome from the
PathoSeq(TM) microbial database. These new microarray products, constructed with Incyte's extensive gene sequence collections, will enable
whole-genome scanning experiments to be conducted for the first time.
During the quarter, Incyte capitalized on its leadership position and internal investment in bioinformatics with new installations of its commercial-grade
software. Bayer Corporation implemented Incyte's LifeTools(TM) bioinformatics software data management system to support its genomics research
efforts. Incyte also completed the custom features of the enterprise-wide genomic data management system for Novartis, a project which was initiated in
June 1997 and is based upon the LifeTools(TM) software. As part of its microarray agreement, Monsanto licensed Incyte's LifeArray(TM) software to
analyze, view and manage microarray data.
Incyte was issued 11 new U.S. patents during the second quarter, bringing to 61 the total number of patents issued to the Company. In addition, Incyte
achieved an important milestone during the quarter when the total number of full-length genes covered by patent applications filed by the Company exceeded
1,000.
Incyte Pharmaceuticals Inc. is a leading provider of an integrated platform of genomic technologies designed to aid in the understanding of the molecular
basis of disease. Incyte's platform includes database products, software for genomic data management and analysis, and related reagents and services,
which Incyte provides to the pharmaceutical and biotechnology industries to assist their discovery and development efforts. Incyte employs more than 650
people at several locations, including its headquarters in Palo Alto, California, and its operations in Fremont, California; St. Louis, Missouri; and Cambridge,
United Kingdom. For more information, visit Incyte's web site at www.incyte.com.
Except for the historical information contained herein, the matters set forth in this press release, including statements as to the timing of release of new
microarray products, are forward-looking statements within the meaning of the ''safe harbor'' provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including ability to scale-up
production capacity; claims of blocking intellectual property, and the impact of technological advances and competition. For a discussion of factors that may
cause results to differ, see Incyte's SEC reports, including its current Report on Form 8-K dated June 12, 1998. These forward-looking statements speak
only as of the date hereof. Incyte disclaims any intent or obligation to update these forward-looking statements.
INCYTE PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS
(in thousands, except per share amounts)
Three months ended Six months ended
June 30, June 30,
1998 1997(A) 1998 1997(A)
(unaudited) (unaudited)
Revenue $33,093 $21,425 $63,472 $39,423
Costs and expenses:
Research and development 23,120 17,370 44,819 32,503
Selling, general and
administrative 5,722 3,250 10,322 6,103
Acquisition-related charges -- -- 1,171 --
Total costs and expenses 28,842 20,620 56,312 38,606
Income from operations 4,251 805 7,160 817
Interest income and
other income, net 1,804 572 3,681 1,069
Losses from joint venture -- -- (640) --
Provisions for income taxes (848) (106) (1,428) (158)
Net income $5,207 $1,271 $8,773 $1,728
Basic net income per share $0.20 $0.05 $0.33 $0.07
Diluted net income per share $0.18 $0.05 $0.30 $0.07
Shares used in computation of:
Basic net income per share 26,610 23,122 26,504 23,059
Diluted net income per share 28,667 25,209 28,792 25,228
(A) Restated to reflect the acquisition of Synteni, Inc., which was
accounted for as a pooling of interests.
INCYTE PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
1998 1997*
Assets (unaudited) (unaudited)
Cash and cash equivalents $32,944 $55,598
Restricted cash 4,000 6,000
Marketable securities-available-for-sale 93,766 57,497
Accounts receivable, net 10,970 19,983
Prepaid expenses and other current assets 5,516 3,836
Total current assets 147,196 142,914
Property and equipment, net 45,653 38,070
Long-term investments 21,054 14,800
Deposits and other assets 5,285 3,305
Total assets $219,188 $199,089
Liabilities and Stockholders' Equity
Accounts payable $3,527 $5,791
Accrued and other current liabilities 13,664 14,608
Deferred revenue 43,213 31,815
Total current liabilities 60,404 52,214
Non-current liabilities 908 1,173
Total liabilities $61,312 $53,387
Total stockholders' equity 157,876 145,702
Total liabilities and stockholders' equity $219,188 $199,089
* The condensed consolidated balance sheet at December 31, 1997 has been
derived from the audited financial statements at that date.
SOURCE: Incyte Pharmaceuticals, Inc.
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