Incyte Buys Proteome to Expand Databases

Incyte Genomics Inc., which develops and sells databases of genetic information, said it bought Proteome Inc. for $77 million in cash and stock, expanding its gene and protein information library. The acquisition strengthens Incyte’s databases by adding data on more than 50,000 proteins, which can be used to study their role in disease and for creating drugs, the company said. Closely held Proteome, based in Beverly, Mass., has developed a biological database of information on the functions of genes and proteins. Proteome’s library contains information on proteins of humans, rats, mice, yeast and other organisms that researchers can use to compare genetic information across different species. Shares of Palo Alto-based Incyte fell $1.06 to close at $24.88 on Nasdaq. Analysts estimate that Proteome will generate about $3 million from subscription sales this year of its data to major drug makers.