To: Larry Liebman who wrote (809 ) 1/16/1999 12:20:00 PM From: Rocketman Respond to
Easy to be bullish on INCY. This is a great company, with a dedicated team and an incredible business plan. The only problem with INCY is that it doesn't garner much respect from the East Coast. Everytime an east coast firm emulates INCY, the analysts panic and predict doom and gloom, which never happens (except for the analyst induced self fulfilling temporary dooming of the stock price as the sheep scatter). In the mean time, INCY always makes their business goals, the company keeps growing at a fast rate, they keep making great strategic acquisitions and the databases get bigger by leaps and bounds. No one is anywhere near as far along in sequencing technology and shear quantity as INCY and their intellectual property, customer and partnering situation is the best in the business. But, every time a wannabe like Celera pops up, the spinmeisters start talking about how INCY is going to pay the price. By the time Celera gets to critical mass, INCY is going to be so close to genome closure that Celera is only going to end up with a few genomic odds and ends. There is a lot of DNA out there and plenty of room for a few competitors to do OK, in reality a big company can be built on just a gene or two if they are the right genes. But, look who the big money in the industry is betting on - INCY - they have more Pharma deals (all eight figure by the way) than anyone in this business - their market penetration is huge. In the last couple of years they have expanded their platform into a huge number of niches that will pay off big: Genome Systems, Synteni, diaDexus, INCY Genetics, not to mention all the collaborative deals they have in clinical genomics, proteomics and the like. Nobody else out there provides customers the one stop genomic platform shopping and integration that INCY does. Plus, everyday we get closer to realizing the returns on the royalty streams that are going to ultimately come due.
