BOTHELL – ICOS Corp. continued to trim its losses during the third quarter, thanks to growth in sales of Cialis and restrained spending on manufacturing and research.
The Bothell-based biotechnology company lost about $27 million, or 42 cents a share, during the third quarter, nearly 13 cents less than the average predicted by analysts. The company hopes to become profitable by the middle of 2005.
Cialis, the company’s erectile dysfunction drug, generated worldwide sales of $154 million. Leonard Blum, ICOS’ senior vice president for sales and marketing, noted that U.S. sales rose 38 percent from the second quarter to the third.
That was despite the ratcheting down of sales and marketing expenses. It’s been just under a year since the Food and Drug Administration approved Cialis in this country.
“We will continue to vigorously build the brand, and we are still very excited about the long-term potential of Cialis,” Blum told investors.
He noted that Cialis sales have risen throughout the year despite reduced spending on advertising and two price increases for the drug.
Paul Latta, an analyst with Seattle-based McAdams Wright Ragen Inc., said he’s generally satisfied by Cialis sales and ICOS’ progress in reducing its quarterly loss. The only fact that gives him pause is that the share of new prescriptions captured by Cialis has hovered around 20 percent for some time now.
“In other words, it’s met my expectations, but not my dreams,” said Latta, who is revising his 2005 sales forecasts downward. He noted that other analysts are more optimistic about sales growth of the drug.
Cialis is trying to chip away at a market dominated by Viagra, one of the best-known brand names in the world. Blum noted, however, that 75 percent to 80 percent of potential erectile dysfunction patients say they know about Cialis.
David Goodkin, ICOS’ chief medical officer, added Thursday that preparations have begun for a second-phase clinical trial that will test Cialis’ effect on benign prostatic hyperplasia. That common condition is caused by enlargement of the prostate in older men.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
