UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                  SCHEDULE 13G

                    Under the Securities Exchange Act of 1934
                               (Amendment No. 2)*

                       INCARA PHARMACEUTICALS CORPORATION
--------------------------------------------------------------------------------
                                (Name of Issuer)

                    Common Stock, $0.001 Par Value Per Share
--------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                    45324E103
                                    ---------
                                 (CUSIP Number)

                                December 31, 2002
                                -----------------
                      (Date of Event which Requires Filing
                               of this Statement)


Check the appropriate box to designate the rule pursuant to which this Schedule
                                    is filed:

                                [ ] Rule 13d-1(b)
                                [X] Rule 13d-1(c)
                                [ ] Rule 13d-1(d)


*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).


                                  Page 1 of 11




-------------------                                           ------------------
CUSIP No. 45324E103                    13G                    Page 2 of 11 Pages
-------------------                                           ------------------

---------- ---------------------------------------------------------------------
        1  NAME OF REPORTING PERSON
           I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

           S.A.C. Capital Advisors, LLC
---------- ---------------------------------------------------------------------
        2  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                         (a) [ ]

                                                                         (b) [X]

---------- ---------------------------------------------------------------------
        3  SEC USE ONLY
---------- ---------------------------------------------------------------------
        4  CITIZENSHIP OR PLACE OF ORGANIZATION

           Delaware
--------------------- ----- ----------------------------------------------------
                         5  SOLE VOTING POWER

                            0
NUMBER OF             ----- ----------------------------------------------------
SHARES                   6  SHARED VOTING POWER
BENEFICIALLY
OWNED                       0 (see Item 4)
BY
EACH                  ----- ----------------------------------------------------
REPORTING                7  SOLE DISPOSITIVE POWER
PERSON
WITH                        0
                      ----- ----------------------------------------------------
                         8  SHARED DISPOSITIVE POWER

                            0 (see Item 4)
---------- ---------------------------------------------------------------------
        9  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

           0 (see Item 4)
---------- ---------------------------------------------------------------------
       10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES

           [ ]

---------- ---------------------------------------------------------------------
       11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

           0% (see Item 4)
---------- ---------------------------------------------------------------------
       12  TYPE OF REPORTING PERSON*

           00
---------- ---------------------------------------------------------------------
                       *SEE INSTRUCTION BEFORE FILLING OUT


                                  Page 2 of 11




-------------------                                           ------------------
CUSIP No. 45324E103                    13G                    Page 3 of 11 Pages
-------------------                                           ------------------

---------- ---------------------------------------------------------------------
        1  NAME OF REPORTING PERSON
           I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

           S.A.C. Capital Management, LLC
---------- ---------------------------------------------------------------------
        2  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                         (a) [ ]

                                                                         (b) [X]

---------- ---------------------------------------------------------------------
        3  SEC USE ONLY
---------- ---------------------------------------------------------------------
        4  CITIZENSHIP OR PLACE OF ORGANIZATION

           Delaware
-------------------- ------ ----------------------------------------------------
                         5  SOLE VOTING POWER

                            0
NUMBER OF            ------ ----------------------------------------------------
SHARES                   6  SHARED VOTING POWER
BENEFICIALLY
OWNED                       240,000 (including 240,000 shares issuable upon
BY                          exercise of warrants) (see Item 4)
EACH                 ------ ----------------------------------------------------
REPORTING                7  SOLE DISPOSITIVE POWER
PERSON
WITH                        0
                     ------ ----------------------------------------------------
                         8  SHARED DISPOSITIVE POWER

                            240,000 (including 240,000 shares issuable upon
                            exercise of warrants) (see Item 4)
---------- ---------------------------------------------------------------------
        9  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

           240,000 (including 240,000 shares issuable upon exercise of warrants)
           (see Item 4)
---------- ---------------------------------------------------------------------
       10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES

           [ ]

---------- ---------------------------------------------------------------------
       11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

           1.7% (see Item 4)
---------- ---------------------------------------------------------------------
       12  TYPE OF REPORTING PERSON*

           00
---------- ---------------------------------------------------------------------
                       *SEE INSTRUCTION BEFORE FILLING OUT


                                  Page 3 of 11




-------------------                                           ------------------
CUSIP No. 45324E103                    13G                    Page 4 of 11 Pages
-------------------                                           ------------------

---------- ---------------------------------------------------------------------
        1  NAME OF REPORTING PERSON
           I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

           S.A.C. Capital Associates, LLC
---------- ---------------------------------------------------------------------
        2  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                         (a) [ ]

                                                                         (b) [X]

---------- ---------------------------------------------------------------------
        3  SEC USE ONLY
---------- ---------------------------------------------------------------------
        4  CITIZENSHIP OR PLACE OF ORGANIZATION

           Anguilla, British West Indies
-------------------- ------ ----------------------------------------------------
                          5  SOLE VOTING POWER

                             0
NUMBER OF             ------ ---------------------------------------------------
SHARES                    6  SHARED VOTING POWER
BENEFICIALLY
OWNED                        240,000 (including 240,000 shares issuable upon
BY                           exercise of warrants) (see Item 4)
EACH                  ------ ---------------------------------------------------
REPORTING                 7  SOLE DISPOSITIVE POWER
PERSON
WITH                         0
                      ------ ---------------------------------------------------
                          8  SHARED DISPOSITIVE POWER

                             240,000 (including 240,000 shares issuable upon
                             exercise of warrants) (see Item 4)
---------- ---------------------------------------------------------------------
        9  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

           240,000 (including 240,000 shares issuable upon exercise of warrants)
           (see Item 4)
---------- ---------------------------------------------------------------------
       10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES

           [ ]

---------- ---------------------------------------------------------------------
       11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

           1.7% (see Item 4)
---------- ---------------------------------------------------------------------
       12  TYPE OF REPORTING PERSON*

           00
---------- ---------------------------------------------------------------------
                       *SEE INSTRUCTION BEFORE FILLING OUT


                                  Page 4 of 11




-------------------                                           ------------------
CUSIP No. 45324E103                    13G                    Page 5 of 11 Pages
-------------------                                           ------------------

---------- ---------------------------------------------------------------------
        1  NAME OF REPORTING PERSON
           I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

           S.A.C. Healthco Fund, LLC
---------- ---------------------------------------------------------------------
        2  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                         (a) [ ]

                                                                         (b) [X]

---------- ---------------------------------------------------------------------
        3  SEC USE ONLY
---------- ---------------------------------------------------------------------
        4  CITIZENSHIP OR PLACE OF ORGANIZATION

           Anguilla, British West Indies
-------------------- ------ ----------------------------------------------------
                         5  SOLE VOTING POWER

                            0
NUMBER OF            ------ ----------------------------------------------------
SHARES                   6  SHARED VOTING POWER
BENEFICIALLY
OWNED                       240,000 (including 240,000 shares issuable upon
BY                          exercise of warrants) (see Item 4)
EACH                 ------ ----------------------------------------------------
REPORTING                7  SOLE DISPOSITIVE POWER
PERSON
WITH                        0
                     ------ ----------------------------------------------------
                         8  SHARED DISPOSITIVE POWER

                            240,000 (including 240,000 shares issuable upon
                            exercise of warrants) (see Item 4)
---------- ---------------------------------------------------------------------
        9  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

           240,000 (including 240,000 shares issuable upon exercise of warrants)
           (see Item 4)
---------- ---------------------------------------------------------------------
       10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES

           [ ]

---------- ---------------------------------------------------------------------
       11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

           1.7% (see Item 4)
---------- ---------------------------------------------------------------------
       12  TYPE OF REPORTING PERSON*

           00
---------- ---------------------------------------------------------------------
                       *SEE INSTRUCTION BEFORE FILLING OUT


                                  Page 5 of 11




-------------------                                           ------------------
CUSIP No. 45324E103                    13G                    Page 6 of 11 Pages
-------------------                                           ------------------

---------- ---------------------------------------------------------------------
        1  NAME OF REPORTING PERSON
           I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

           Steven A. Cohen
---------- ---------------------------------------------------------------------
        2  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                         (a) [ ]

                                                                         (b) [X]

---------- ---------------------------------------------------------------------
        3  SEC USE ONLY
---------- ---------------------------------------------------------------------
        4  CITIZENSHIP OR PLACE OF ORGANIZATION

           United States
-------------------- ------ ----------------------------------------------------
                         5  SOLE VOTING POWER

                            0
NUMBER OF            ------ ----------------------------------------------------
SHARES                   6  SHARED VOTING POWER
BENEFICIALLY
OWNED                       240,000 (including 240,000 shares issuable upon
BY                          exercise of warrants) (see Item 4)
EACH                 ------ ----------------------------------------------------
REPORTING                7  SOLE DISPOSITIVE POWER
PERSON
WITH                        0
                     ------ ----------------------------------------------------
                         8  SHARED DISPOSITIVE POWER

                            240,000 (including 240,000 shares issuable upon
                            exercise of warrants) (see Item 4)
---------- ---------------------------------------------------------------------
        9  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

           240,000 (including 240,000 shares issuable upon exercise of warrants)
           (see Item 4)
---------- ---------------------------------------------------------------------
       10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES

           [ ]

---------- ---------------------------------------------------------------------
       11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

           1.7% (see Item 4)
---------- ---------------------------------------------------------------------
       12  TYPE OF REPORTING PERSON*

           IN
---------- ---------------------------------------------------------------------
                       *SEE INSTRUCTION BEFORE FILLING OUT


                                  Page 6 of 11




Item 1(a)           Name of Issuer:
                    ---------------

                    Incara Pharmaceuticals Corporation

Item 1(b)           Address of Issuer's Principal Executive Offices:
                    ------------------------------------------------

                    79 T.W. Alexander Drive
                    4401 Research Commons - Suite 200
                    Research Triangle Park, NC  27709

Items 2(a)          Name of Person Filing:
                    ----------------------

                    This statement is filed by: (i) S.A.C. Capital Advisors,
                    LLC, ("SAC Capital Advisors") with respect to Shares
                    beneficially owned by S.A.C. Capital Associates, LLC ("SAC
                    Capital Associates") and S.A.C. Healthco Fund, LLC ("SAC
                    Healthco"); (ii) S.A.C. Capital Management, LLC, ("SAC
                    Capital Management") with respect to Shares beneficially
                    owned by SAC Capital Associates and SAC Healthco; (iii) SAC
                    Capital Associates with respect to Shares beneficially owned
                    by it; (iv) SAC Healthco with respect to Shares beneficially
                    owned by it; and (v) Steven A. Cohen with respect to Shares
                    beneficially owned by SAC Capital Advisors, SAC Capital
                    Management, SAC Capital Associates and SAC Healthco.


Item 2(b)           Address of Principal Business Office:
                    -------------------------------------

                    The address of the principal business office of (i) SAC
                    Capital Advisors and Mr. Cohen is 72 Cummings Point Road,
                    Stamford, Connecticut 06902, (ii) SAC Capital Management is
                    540 Madison Avenue, New York, New York 10022, and (iii) SAC
                    Capital Associates and SAC Healthco is P.O. Box 58, Victoria
                    House, The Valley, Anguilla, British West Indies.

Item 2(c)           Citizenship:
                    ------------

                    SAC Capital Advisors and SAC Capital Management are Delaware
                    limited liability companies. SAC Capital Associates and SAC
                    Healthco are Anguillan limited liability companies. Mr.
                    Cohen is a United States citizen.

Item 2(d)           Title of Class of Securities:
                    -----------------------------

                    Common Stock, par value $0.001 per share


                                  Page 7 of 11




Item 2(e)           CUSIP Number:
                    -------------

                    45324E103

Item 3              Not Applicable

Item 4              Ownership:
                    ----------

                    The percentages used herein are calculated based upon the
                    Shares issued and outstanding as of December 13, 2002 as
                    reported on the Company's quarterly report on Form 10-K/A
                    filed with the Securities and Exchange Commission by the
                    Company for the fiscal quarter ended September 30, 2002.

                    As of the close of business on December 31, 2002:

                    1. S.A.C. Capital Advisors, LLC
                    (a)    Amount beneficially owned: - 240,000- (including
                           240,000 shares issuable upon exercise of warrants)
                    (b)    Percent of class: 1.7%
                    (c)(i) Sole power to vote or direct the vote: -0-
                    (ii)   Shared power to vote or direct the vote: -240,000-
                           (including 240,000 shares issuable upon exercise of
                           warrants)
                    (iii)  Sole power to dispose or direct the disposition: -0-
                    (iv)   Shared power to dispose or direct the disposition:
                           -240,000- (including 240,000 shares issuable upon
                           exercise of warrants)

                    2. S.A.C. Capital Management, LLC
                    (a)    Amount beneficially owned: -240,000- (including
                           240,000 shares issuable upon exercise of warrants)
                    (b)    Percent of class: 1.7%
                    (c)(i) Sole power to vote or direct the vote: -0-
                    (ii)   Shared power to vote or direct the vote: -240,000-
                           (including 240,000 shares issuable upon exercise of
                           warrants)
                    (iii)  Sole power to dispose or direct the disposition: -0-
                    (iv)   Shared power to dispose or direct the disposition:
                           -240,000- (including 240,000 shares issuable upon
                           exercise of warrants)

                    3. S.A.C. Capital Associates, LLC
                    (a)    Amount beneficially owned: -240,000- (including
                           240,000 shares issuable upon exercise of warrants)
                    (b)    Percent of class: 1.7%
                    (c)(i) Sole power to vote or direct the vote: -0-
                    (ii)   Shared power to vote or direct the vote: -240,000-
                           (including 240,000 shares issuable upon exercise of
                           warrants)
                    (iii)  Sole power to dispose or direct the disposition: -0-
                    (iv)   Shared power to dispose or direct the disposition:
                           -240,000- (including 240,000 shares issuable upon
                           exercise of warrants)


                                  Page 8 of 11




                    4. S.A.C. Healthco Fund, LLC
                    ((a)   Amount beneficially owned: -0-
                    (b)    Percent of class: 0%
                    (c)(i) Sole power to vote or direct the vote: -0-
                    (ii)   Shared power to vote or direct the vote: -0-
                    (iii)  Sole power to dispose or direct the disposition: -0-
                    (iv)   Shared power to dispose or direct the disposition:
                           -0-

                    5. Steven A. Cohen
                    (a)    Amount beneficially owned: -240,000- (including
                           240,000 shares issuable upon exercise of warrants)
                    (b)    Percent of class: 1.7%
                    (c)(i) Sole power to vote or direct the vote: -0-
                    (ii)   Shared power to vote or direct the vote: -240,000-
                           (including 240,000 shares issuable upon exercise of
                           warrants)
                    (iii)  Sole power to dispose or direct the disposition: -0-
                    (iv)   Shared power to dispose or direct the disposition:
                           -240,000- (including 240,000 shares issuable upon
                           exercise of warrants)

                    SAC Capital Advisors, SAC Capital Management, and Mr. Cohen
                    own directly no shares of Common Stock or Warrants. Pursuant
                    to investment agreements, each of SAC Capital Advisors and
                    SAC Capital Management share all investment and voting power
                    with respect to the securities held by SAC Capital
                    Associates and SAC Healthco. Mr. Cohen controls both SAC
                    Capital Advisors and SAC Capital Management. By reason of
                    the provisions of Rule 13D-3 of the Securities Exchange Act
                    of 1934, as amended, each of SAC Advisors, SAC Management
                    and Mr. Cohen may be deemed to own beneficially 240,000
                    (including 240,000 shares issuable upon exercise of
                    warrants) (constituting approximately 1.7% of the shares
                    outstanding). Each of SAC Capital Advisors, SAC Capital
                    Management and Mr. Cohen disclaim beneficial ownership of
                    any of the securities covered by this statement.


                                  Page 9 of 11




Item 5              Ownership of Five Percent or Less of a Class:
                    ---------------------------------------------

                    If this statement is being filed to report the fact that as
                    of the date hereof the reporting person has ceased to be the
                    beneficial owner of more than five percent of the class of
                    securities, check the following. [X]

Item 6              Ownership of More than Five Percent on Behalf of Another
                    --------------------------------------------------------
                    Person:
                    -------

                    Not Applicable

Item 7              Identification and Classification of the
                    ----------------------------------------
                    Subsidiary Which Acquired the Security Being
                    --------------------------------------------
                    Reported on By the Parent Holding Company:
                    ------------------------------------------

                    Not Applicable

Item 8              Identification and Classification of Members
                    --------------------------------------------
                    of the Group:
                    -------------

                    Not Applicable

Item 9              Notice of Dissolution of Group:
                    -------------------------------

                    Not Applicable

Item 10             Certification:
                    --------------

     By signing below the signatory certifies that, to the best of his knowledge
and belief, the securities referred to above were not acquired and are not held
for the purpose of or with the effect of changing or influencing the control of
the issuer of the securities and were not acquired and are not held in
connection with or as a participant in any transaction having that purpose or
effect.


                                 Page 10 of 11




                                    SIGNATURE
                                    ---------

     After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.


Dated: February 11, 2003

S.A.C. CAPITAL ADVISORS, LLC

By: /s/ Peter Nussbaum
    ------------------------------
Name:  Peter Nussbaum
Title: Authorized Person


S.A.C. CAPITAL MANAGEMENT, LLC

By: /s/ Peter Nussbaum
    ------------------------------
Name:  Peter Nussbaum
Title: Authorized Person


S.A.C. CAPITAL ASSOCIATES, LLC

By: /s/ Peter Nussbaum
    ------------------------------
Name:  Peter Nussbaum
Title: Authorized Person


S.A.C. HEALTHCO FUND, LLC

By: /s/ Peter Nussbaum
    ------------------------------
Name:  Peter Nussbaum
Title: Authorized Person


STEVEN A. COHEN

By: /s/ Peter Nussbaum
    ------------------------------
Name:  Peter Nussbaum
Title: Authorized Person


                                 Page 11 of 11