ICOS closure ‘a huge blow’
Published 9:00 pm Tuesday, December 12, 2006
BOTHELL – ICOS Corp.’s disappearance from the local biotechnology landscape will be a big setback to the companies that remain and to economic leaders who’ve tried to nurture the industry’s growth in Snohomish County.
Not to mention the impact on the 550 or so local ICOS employees losing their high-paying jobs. Another 165 or so out-of-state sales employees also are being laid off.
“It is a huge blow. Not only to Bothell and Snohomish County, but to the state,” said Deborah Knutson, president of the Snohomish County Economic Development Council.
She and others reacted Tuesday to confirmation that Eli Lilly &Co. won’t retain any of ICOS’ 700 or so jobs if Lilly’s $2.1 billion buyout of the Bothell company is approved next week. Lilly previously had said it planned “significant” cuts in the local work force.
ICOS spokeswoman Lacy Fitzpatrick said not all of the company’s employees have received termination notices, but no one is expected to still be working there past late 2007.
“That’s probably the outcome,” she said.
The first group to lose their jobs, assuming the Lilly buyout is approved, will be sales representatives, sales management and all but a few executive officers. That’s scheduled to happen Jan. 2.
After ICOS’ contract manufacturing facility wraps up its work next year, that staff will be the last to leave.
The Economic Development Council is focusing its efforts on keeping the contract manufacturing plant open in some way, Knutson said. She couldn’t give any details on how that might happen, however.
Knutson said other local biotech companies she’s talked to worry that the loss of ICOS will sour the region’s image as a biotech center. Since Seattle’s Immunex was bought out in 2002 by Amgen, ICOS had been the industry’s largest company based in Washington.
“This state does such a good job with the research and development side, but we don’t do a very good job capitalizing on the commercial successes,” she said.
Lilly and ICOS have partnered for years on the development and marketing of Cialis, an erectile dysfunction drug that’s expected to exceed $1 billion in annual sales next year. But the buyout has been controversial with some investors, who say Lilly isn’t paying enough.
One of ICOS’ major shareholders has committed to voting no. An influential proxy analysis firm has recommended a no vote, although another firm recommended a yes vote last week. Individual investors have asked state and federal regulators to scrutinize the deal.
The final shareholder vote will be held at ICOS headquarters Tuesday.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
