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Getting to the Ultimate Database

Affymetrix is suing Incyte--the latest manifestation of how two apparently different businesses, based on very different technologies, are going to have to go head-to-head, competitively. The goal: the ultimate genomics database.

As Amgen Inc. created the model of the successful, fully integrated biotech company, Incyte Pharmaceuticals Inc. has done the same for the biotech service business. Selling its data non-exclusively, it now has a rapidly growing, stable and profitable business, with committed 1998 purchases of $105 million and projections of $140 million, representing a 60% increase in sales and 100% increase in net income, granted it makes its numbers.

But like Amgen, Incyte's problem is an encore: its data has a finite life. Thus the company needs to continually...

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