On August 17, Incyte Pharmaceuticals (Palo Alto, CA) announced the formation of a new pharmacogenetics business, Incyte Genetics, resulting from the acquisition of Hexagen (Cambridge, UK) a private company specializing in analysis of human genetic variation and its relationship to disease. Although the news has been greeted poorly by investors--Incyte share price dropped 38% in the two weeks following the announcement--the apparent market for pharmacogenetic information coupled with the infancy of the field is expected to benefit Incyte in the long term.