ICOS raises its profit forecast

Published 9:00 pm Thursday, December 14, 2006

BOTHELL – ICOS Corp. said Thursday that sales of Cialis and the company’s profits will be significantly higher than earlier forecasted next year.

The company released its updated outlook just days before shareholders vote whether to approve Eli Lilly &Co.’s $2.1 billion acquisition of ICOS. The shareholder meeting takes place Tuesday at ICOS headquarters in Bothell.

ICOS forecast worldwide sales of its erectile dysfunction drug will total $255 million to $265 million in the fourth quarter, and $955 million to $965 million for all of 2006.

For ICOS alone, that will create earnings per share between 17 cents and 22 cents for the quarter, and 33 cents to 38 cents for the year.

Analysts surveyed by Thomson Financial had expected earnings per share of 9 cents for the quarter, and 29 cents for the year.

For 2007, ICOS forecast Cialis sales would exceed $1.1 billion for the year.

Lilly and ICOS have operated a joint venture since 1998 to develop and market Cialis. The drug, launched in 2003, is poised to sell better than its rival Viagra nearly everywhere except North America by the end of next year.

In releasing its updated forecasts Thursday, ICOS issued a statement saying it was “important to update its shareholders on the expected financial performance of (the joint venture) and the company.” Shareholders opposed to the company’s buyout have accused it of not releasing information that might increase ICOS’ value beyond Lilly’s offer of $32 per share.

Assuming the buyout is approved, Lilly has told ICOS’ 700 employees that their jobs will be eliminated.