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Biotech / Medical : VD's Model Portfolio & Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: Gary L. Kepler who wrote (7130)	10/5/1999 9:53:00 AM
From: rkrw	Respond to of 9719

<<Any thoughts on what happened to their VP Finance(INCY)? I am in at least through the lawsuit or until there is a buyout. I think there is value here in the databases but they need more sources of revenue. If a select big drug company start realizing benefits, would it not be better to buy than have to pay future royalties? In other words, similar to Bayer buying MLNM at some future point?>> I always consider it to be a red flag when the CFO resigns. Often its a precursor to a problem. I don't think they'd be bought as a way around royalties. As far as I know no Incyte connected drugs are yet in the clinic. Further, I've always been led to believe their royalty rate is about 0.5-1%. Possibly another biotech? Chiron? Bayer did not buy MLNM, they bought a non-controlling stake as part of their $465M target deal. Incyte would have to change their business model to attract that kind of investment imo. My main questions with Incyte is can they continue their selling power with the entire genome being detailed? Can they continue to strike deals with their mini-attached royalties? Will their patent estate hold up? How long will Incyte put off modifying their business plan?