INCYTE PHARMACEUTICALS INC
8-K, 1998-09-03
COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH
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SECURITIES  AND  EXCHANGE  COMMISSION

WASHINGTON,  D.  C.    20549



FORM  8-K



CURRENT  REPORT



PURSUANT  TO  SECTION  13  OR  15(D)  OF  THE
SECURITIES  EXCHANGE  ACT  OF  1934


DATE  OF  REPORT:    SEPTEMBER  2,  1998
(Date  of  earliest  event  reported)


INCYTE  PHARMACEUTICALS,  INC.
(Exact  name  of  registrant  as  specified  in  its  charter)


DELAWARE                         0-27488          94-3136539
(State  or  other  jurisdiction     (Commission            (IRS Employer
of  incorporation)                File  Number)    Identification  No.)


3174  PORTER  DRIVE,  PALO  ALTO,  CALIFORNIA        94304
(Address  of  principal  executive  offices)              (Zip  Code)


Registrant's  telephone  number,  including  area  code:   (650) 855-0555




<PAGE>
Item  5.          Other  Events.
                  -------------

     Disclosure  regarding  litigation  involving Incyte Pharmaceuticals, Inc.
(the  "Company")  and its wholly owned subsidiary Synteni, Inc. ("Synteni") is
amended  to  reflect  recent  developments  as  follows:


     In  January  1998, Affymetrix, Inc. ("Affymetrix") filed a lawsuit in the
United  States  District  Court  for  the  District  of  Delaware  alleging
infringement  of  U.S.  patent  number  5,445,934  (the "'934 Patent") by both
Synteni  and  Incyte.  The  complaint  alleges  that  the '934 Patent has been
infringed  by  the making, using, selling, importing, distributing or offering
to  sell  in  the U.S. high density arrays by Synteni and Incyte and that such
infringement  was  willful.  Affymetrix seeks a permanent injunction enjoining
Synteni  and  Incyte  from  further  infringement  of  the '934 Patent and, in
addition,  seeks  damages,  costs and attorney's fees and interest. Affymetrix
further  requests  that any such damages be trebled based on its allegation of
willful  infringement  by  Incyte  and  Synteni.

     In  September  1998  Affymetrix filed an additional lawsuit in the United
States  District  Court  for the District of Delaware alleging infringement of
U.S.  patent  number  5,800,992  (the  "'992  Patent")  and U.S. patent number
5,744,305  (the  "'305  Patent")  by  both  Synteni  and Incyte. The complaint
alleges that the '305 Patent has been infringed by the making, using, selling,
importing, distributing or offering to sell in the U.S. high density arrays by
Synteni  and  Incyte,  that  the  '992 Patent has been infringed by the use of
Synteni's  and  Incyte's  GEM microarray technology to conduct gene expression
monitoring  using  two-color labeling, and that such infringement was willful.
Affymetrix  seeks  a  permanent  injunction  enjoining Synteni and Incyte from
further  infringement  of  the  '305  and '992 Patents and, in addition, seeks
damages,  costs  and attorney's fees and interest. Affymetrix further requests
that  any  such  damages  be  trebled  based  on  its  allegation  of  willful
infringement  by  Incyte  and  Synteni.  In  addition,  Affymetrix  seeks  a
preliminary  injunction  enjoining Incyte and Synteni from using Synteni's and
Incyte's GEM microarray technology to conduct gene expression monitoring using
two-color  labeling.

     Incyte  and  Synteni believe they have meritorious defenses and intend to
defend  the  suits  vigorously. However, there can be no assurance that Incyte
and  Synteni  will  be successful in the defense of these suits. Regardless of
the outcome, this litigation has resulted and, if a settlement is not reached,
is expected to continue to result in substantial expenses and diversion of the
efforts  of  management  and  technical  personnel.  Further,  there can be no
assurance  that any license that may be required as a result of these suits or
the  outcome thereof would be made available on commercially acceptable terms,
if  at  all.



<PAGE>
     SIGNATURE


     Pursuant  to the requirements of the Securities Exchange Act of 1934, the
registrant  has  duly  caused  this  report  to be signed on its behalf by the
undersigned  hereunto  duly  authorized.


     Dated:    September  2,  1998.


INCYTE  PHARMACEUTICALS,  INC.



By          /s/  Denise  Gilbert
            --------------------
Name:          Denise  Gilbert

Title:          Executive  Vice  President  and
     Chief  Financial  Officer





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