EXHIBIT  99.2

INCYTE  ANNOUNCES  PROPOSED  OFFERING  OF  CONVERTIBLE  SUBORDINATED  NOTES

PALO ALTO, Calif., Jan. 26 /PRNewswire/ -- Incyte Pharmaceuticals, Inc. (Nasdaq:
INCY - news) announced today that it proposes to make a private offering of $150
million  of  Convertible Subordinated Notes due 2007, with an option to issue up
to  an  additional $50 million of Notes. The Notes will be offered in the United
States  only  to  qualified  institutional  buyers  and institutional accredited
investors  pursuant  to  exemptions  from  the  registration requirements of the
Securities  Act of 1933. The Notes may also be offered outside the United States
in  accordance  with  Regulation  S  under  the  Securities  Act.

The  Company  stated that it expects to use the net proceeds of the offering for
working  capital  and  general  corporate purposes. Proceeds may also be used to
make  strategic  investments,  acquire  or  license  technology  or products, or
acquire  businesses  that  may  complement  its  business.

This  press  release does not constitute an offer to sell or the solicitation of
an  offer  to  buy  any  security.  The Notes have not been registered under the
Securities  Act  of  1933  or  applicable  state  securities laws and may not be
offered  or  sold  in the United States absent registration under the Securities
Act  and  applicable  state  securities laws or an applicable exemption from the
registration  requirements.

Except for the historical information contained herein, the matters set forth in
this  press  release, such as statements as to the expected use of net proceeds,
are  forward-looking  statements  within  the  meaning  of  the  ``safe harbor''
provisions  of  the  Private  Securities  Litigation  Reform  Act of 1995. These
forward-looking statements are subject to risks and uncertainties that may cause
actual  results to differ materially, including market and other conditions that
may  affect  Incyte's  ability  to complete the proposed offering, the impact of
alternative  technological  advances  and  competition,  changes in the focus of
Incyte's  research  and  development activities, developments in litigation, and
other  risks  detailed  from time to time in Incyte's SEC reports, including its
Quarterly  Report  on Form 10-Q for the quarter ended September 30, 1999. Incyte
disclaims  any  intent or obligation to update these forward-looking statements.