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Biotech / Medical : Incyte (INCY) -- Ignore unavailable to you. Want to Upgrade?

To: RCMac who wrote (836)	2/3/1999 1:03:00 PM
From: Rocketman	Respond to of 3202

Thanks RCMac for digging those up. Well, fortunately I guess I was wrong on the afternoon data release. I'm glad to see them doing morning releases as it gives individual investors a better shot versus the pros who can trade afterhours. Although there was still nearly a $3 gap up at the open. While I am sorry to see them abandon being profitable until late 2000, I think that it is the right strategy for them. I just wish they wouldn't have put such a funk on the company by going down this tracking stock road and causing all the grief and confusion by announcing it in the first place. Seems that INCY needs to think this stuff through a bit better before making it an issue. One issue that I had with the tracking stock split, was that it wasn't a physical possibility to split the company without incurring huge costs, you have INCY General and INCY Genomics staff working side by side in all of the facilities worldwide with only a job description making the distinction of which company you worked for. I think that a real clue about the future in this press release is that they want to preserve their right to do pooling of interest for acquisitions. My guess is they have some more companies targeted that they will merge into the company. However, this is a gold rush and INCY has decided that digging fast and furious for the next year or so is more important than conserving on the expenses. I totally agree with this. A huge portion of INCY's value is in their intellectual property; digging out those golden full length gene nuggets and the ESTs which are golden flakes, and owning them exclusively IS the best long and short term strategy. Damn the quarter to quarter profitability trader mentality, INCY is a long haul company that will be THE dominant genomics company of the next millenium. I found it interesting that INCY gave guidance on 1999 revenues and the expected loss. Maybe they will become a little more communicative on the forward looking projections. I'm am pleasantly surprised to see them break down the revenue by stream: dbase, reagents, microarrays, and other. This will definitely make the stock easier to analyze. Seems like the microarray business has some great growth ahead this year, going from contributing 6% of revenue to an estimated 15-20%. Now, what I find most interesting is the Abbott renewal and addition of microarrays, the J&J major deal expansion including the new LifeSeq Gold dbase, and even more so, that they have the 5' and 3' ends of 110,000 human genes. They still have never lost a customer, the customers they have keep signing up for more products and INCY has milked the data for another product. That is definitely great progress. You just have got to love the devotion of their customers and the steady progress on the revenues. It sure just doesn't seem right to me for a company like EBAY to be worth $10B, while INCY is only worth $0.77B. These two need to meet in the middle. Rman