Tuesday, December 01, 2009

Jacked up Dreams at Incyte

In the newly inked commercial deal with Novartis, drug designer Incyte (INCY-$8.39) retained exclusive rights for the development and potential commercialization of INCB18424 in the US. With more than 100,000 patients suffering from MF or related disorders, on the surface this looks like a sound commercial strategy. Think again — although the company had about $361 million in cash available as of November 5, no revenue stream currently exists to fund in-house development.

With an accumulated deficit of $1.3 billion sitting on its balance sheet, Incyte knows first hand the financial risks that coincide with navigating a small molecule compound from proof-in-principle and clinical trials to FDA approval and commercial viability.

Read more at BNET Pharma….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

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