Incyte Q1 results
Incyte Corporation has announced that as of March 31, 2004, cash and short-term investments totalled approximately $501m compared with $294m as of December 31, 2003. The increase is a result of the sale of $250m of the company's 3.5% convertible subordinated notes, which resulted in net proceeds of approximately $242m, partially offset by the company's cash use of approximately $35m. In line with prior guidance, the company said it expects to use between $130-140m in cash in 2004, excluding any possible in-license or purchase of products in clinical development, or any debt repurchases.
Incyte also showed a total net loss for the first quarter of 2004 of $37.7m compared with $55.8m for the same period in 2003. Included in Incyte's first quarter 2004 net loss were restructuring and related charges of $7.6m in connection with the closure of its facilities in Palo Alto. The company expects to record up to an additional $40m of restructuring and related charges in the second quarter of 2004. The total expected 2004 restructuring charge of up to $47m is unchanged. Also included in the company's net loss for the first quarter of 2004 is a charge of $2.7m as a result of write-downs related to reduced market valuations in strategic investments that Incyte holds in other companies. Also included in the first quarter 2003 net loss was a charge of $28.1m for purchased in-process research and development expense related to the acquisition of Maxia Pharmaceuticals.
Revenues for the quarter ended March 31, 2004 were $6.6m compared with revenues of $12.5m for the same period in 2003. The decrease in revenues, which were primarily derived from the company's information products, reflects the company's decision to discontinue its Palo Alto-based information products line.
Total research and development expense was $26.2m in the first quarter of 2004 compared with $30.2m for the same period of 2003. The decreased expense is a result of the company's cost cutting and restructuring efforts at its Palo Alto facilities, which was partially offset by increased expenses associated with its drug discovery and development programs. David Hastings, executive vice president and CFO of Incyte stated: 'During the first quarter of 2004, Incyte successfully continued its focus on rationalising the company's infrastructure and significantly strengthening its cash position in order to better position the company to execute its drug discovery and development strategy.