Incyte Launches Pharmacogenetics Business Unit to Sequence and Map the Human Genome
New Business to Commercialize Pharmaceutical Applications of Genetic Variation Data; New Series of Stock to Track Performance
PALO ALTO, Calif., Aug. 17 /PRNewswire/ -- Incyte Pharmaceuticals, Inc., (Nasdaq: INCY - news) announced today the formation of Incyte Genetics, a new separately financed business unit. Incyte Genetics will complete a map of the human genome within one year, produce a large-scale genome sequence database and generate single nucleotide polymorphism (SNP) data for every human gene. Incyte Genetics believes this comprehensive program will produce an unprecedented increase in knowledge about the genetics of disease and drug interaction. Incyte Genetics will commercialize its technology through a combination of database products, directed programs and pharmacogenetics services for the pharmaceutical industry.
Incyte Genetics will capitalize on Incyte's leadership position in sequencing and bioinformatic technologies. A key component of the new business will be Hexagen plc, a private company whose pending acquisition by Incyte was announced separately today. As a result, Incyte Genetics will provide the only integrated gene-based polymorphism, mapping and genome sequence products available to the pharmaceutical industry.
Incyte Genetics will acquire SNP and mapping intellectual property rights to over 3 million gene sequences from Incyte's LifeSeq(R) human database products. These include the world's largest proprietary database of gene coding sequences, full-length sequences, and gene expression information from hundreds of normal and diseased individuals. Hexagen's high-throughput single nucleotide polymorphism (SNP) discovery platform and manufacturing operation in Cambridge, England will complement Incyte's existing gene discovery and polymorphism data and technologies.
''We believe Incyte and Incyte Genetics have significant competitive advantages,'' said Randy Scott, Ph.D., President and Chief Scientific Officer of Incyte. ''Incyte has one of the premier DNA sequencing operations in the world with advanced technologies and the capacity to sequence the human genome now. Incyte Genetics' programs will capitalize on the approximately 90% of the genes in the human genome resident in Incyte's LifeSeq(R) database along with the thousands of already identified SNPs. Incyte has a well-established bioinformatics infrastructure and expertise in managing and analyzing large- scale sets of genetic data. In addition, Incyte already has established relationships with more than 20 of the world's leading pharmaceutical companies, who will benefit significantly from the integration of the new pharmacogenetics programs with existing Incyte databases.''
Investment
Incyte's current plans call for the investment in Incyte Genetics to total approximately $200 million in the first two years, including Incyte's investment in the Hexagen acquisition. Of the balance, approximately $20-$30 million in cash would be provided from Incyte, half between now and the end of the year. The remainder is expected to be provided by subscription revenues and related fees from pharmacogenetics products and investments from strategic partners and the equity markets. Subject to approval by Incyte stockholders, which will be sought later this year, Incyte intends to establish a new series of common stock to track the performance of the Incyte Genetics business unit. Incyte also intends to distribute authorized shares of the new series to Incyte stockholders in the form of a stock dividend.
''Incyte has demonstrated its ability to combine breakthrough scientific achievements while, at the same time, building commercial and shareholder value,'' said Roy A. Whitfield, Chief Executive Officer of Incyte. ''Based on the business plan, supported by preliminary discussions with our pharmaceutical partners, Incyte Genetics is expected to be revenue generating in 1999 and profitable within four years.''
Commercial Strategy
Incyte Genetics will initially launch three product platforms. These include the LifeSeq Atlas(TM) gene mapping database, the LifeSeq(R) Genome database containing the sequence of the human genome and LifeSNP(TM) database of polymorphisms. Long-term Incyte Genetics will offer pharmacogenetics products and services, gene-associated disease biology programs, and genetic diversity databases.
''Mapping all of Incyte's genes will create the framework which will enable faster, smarter sequencing of the human genome and SNP discovery,'' said Randy Scott, Ph.D., President and Chief Scientific Officer of Incyte. ''As a result, the commercial and scientific value of the human genome can be more quickly realized through this integrated, directed approach.''
The data generated by Incyte Genetics programs will enable pharmaceutical researchers and clinical development groups to identify key genetic differences between individuals believed to be important in determining whether a patient will respond to a drug, develop a disease or have an adverse drug reaction.
Incyte Genetics Management
Incyte Genetics founding management team is comprised of key Incyte and Hexagen individuals. Management from Incyte includes Randy Scott, Ph.D. who will serve as Acting Chief Executive Officer; Richard Goold, Ph.D., who will serve as Vice President of Research and Development; and Marian Marra, who will serve as Vice President of Business Development. Founding management from Hexagen includes Mark Bodmer, Ph.D., who will serve as President; and Andrew Sandham, who will serve as Chief Operating Officer. Including Hexagen, the unit begins operations with more than 100 employees devoted to Incyte Genetics programs, a number which is expected to more than double in 1999.
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. The Incyte General division develops and markets gene discovery and expression products -- including databases, genomic data management software, microarray-based gene expression services, and related reagents -- enabling the pharmaceutical industry to identify new targets and pathways for drug discovery and development. The Incyte Genetics division will provide databases, bioinformatics, and services relating to sequencing and mapping the human genome and identifying gene sequence variation, enabling the pharmaceutical industry to utilize pharmacogenetics as an integral part of pharmaceutical discovery and development. 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 timing of closing of the Hexagen acquisition, completion of a map of the human genome, investment and expense levels, the ability to raise funds from private and public equity markets, the ability to generate revenues and attain profitability, the timing and extent of the increase in the number of Incyte Genetics employees, 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, the satisfaction of certain conditions to closing of the proposed Hexagen acquisition; the utility of gene mapping and polymorphism data; the ability to scale technologies; the ability to raise funding for Incyte Genetics; and the impact of alternative technological advances and competition; and other risks detailed from time to time in Incyte's SEC reports, including its Quarterly Report on Form 10-Q for the quarter ended June 30, 1998. Incyte disclaims any intent or obligation to update these forward-looking statements.
This announcement does not constitute an offer to sell or the solicitation of an offer to buy securities of Incyte. Any offering of securities of Incyte, including any series of common stock intended to track the performance of Incyte Genetics, will be made only by means of a prospectus.
SOURCE: Incyte Pharmaceuticals, Inc.
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