Incyte to Cut Staff, Close Palo Alto Office

Gene-hunting pioneer Incyte Corp. announced Monday that it would lay off more than half its staff and close a gene-collection office, completing its transition out of the once red-hot field of genomics.

The company said its proprietary database of human genes could no longer compete now that detailed genetic codes are available free via the Internet.

“As a result, we can no longer justify the extensive investment and infrastructure associated with the Palo Alto site,” said John Keller, a company executive vice president.

The company will lay off 257 workers -- 57% of its workforce -- and will shut its former headquarters in Palo Alto by April 2. The company said it would take a $47-million restructuring charge this year.

Incyte lost $166.5 million last year.

The company, now based in Wilmington, Del., has refashioned itself as a drug maker. Celera Genomics Group, Myriad Genetics Inc., Millennium Pharmaceuticals Inc. and other companies hoping to profit from the mapping of the human genome by selling genetic information to the pharmaceutical industry also have remade themselves as drug makers.

Incyte made its announcement after the market closed. On Monday, the company’s shares closed up 79 cents, or 9%, at $9.71 on Nasdaq.