BOTHELL — A local biotechnology firm is about to compete head-on with the world’s biggest pharmaceutical companies and one of the best-selling drugs ever.
It sounds like an unfair fight. And it is, says Leonard Blum, ICOS Corp.’s senior vice president of sales and marketing. Not for ICOS, he insists, but for its much-bigger rivals.
If he’s nervous about the upcoming battle in the U.S. market between world-famous Viagra and Cialis, the erectile dysfunction drug developed by ICOS, Blum’s not showing it.
"You dream of this opportunity. You’re entering a market, among some very strong competition, but with an unfair advantage," he said with a grin during an interview at ICOS’ headquarters in Bothell.
The advantage is that Cialis, the erectile dysfunction drug developed by ICOS, can work for up to 36 hours after a man takes it, according to clinical studies. Pfizer Inc.’s Viagra has an average window of about four hours.
That’s why Blum and his marketing counterpart at Eli Lilly &Co., ICOS’ pharmaceutical partner for the drug, are optimistic about their chances.
"If every man with erectile dysfunction who’s been using Viagra just tries Cialis … we think a large number of those patients are going to want to stick with Cialis," said Blum, 42.
Cialis, which is ICOS’ first drug to receive commercial approval, and Viagra already are competing in more than 45 countries around the world. The U.S. Food and Drug Administration is expected to approve it for use here any day now.
That will significantly intensify the battle between the brands, as this is by far the world’s most lucrative prescription drug market. Cialis alone could reach $1 billion in annual sales in just a few years.
Of Viagra’s $1.7 billion in sales last year, $1 billion came from the U.S. market, said Daniel Watts, a Pfizer spokesman. The drug holds more than 80 percent of the erectile dysfunction market here.
Levitra, a similar drug made by multinational giants GlaxoSmithKline and Bayer AG, was released here about three months ago. Like Viagra, its effectiveness wears off after about four hours.
Since February, Cialis has captured about 30 percent of the market in Australia, Germany, France and Italy. For comparison, Levitra holds about 15 percent of the market in Germany and Italy and under 10 percent elsewhere.
In France, Cialis already has picked up a nickname — Le Weekend — because of its lasting effect.
To make Cialis a household name here, though, it’s going to take a blitz of ads. Which is precisely what ICOS and Lilly plan to do once they receive the FDA’s nod.
While Viagra has used politician Bob Dole and Texas Rangers baseball star Rafael Palmeiro as spokesmen, and Levitra has ex-NFL coach Mike Ditka, Cialis will not use a celebrity, at least not in its initial marketing. That departure from its competitors fits Blum’s argument that Cialis’ practical advantage over Viagra is its strongest selling point.
"We want people to talk about the drug, not who our spokesperson is versus their spokesperson," Blum said.
Paul Latta, an analyst who tracks ICOS for McAdams Wright Ragen Inc. in Seattle, agreed that may be a good move.
"To me, not using a spokesman is not a big deal. The important thing is to generate a brand image, and there’s more than one way to do that," Latta said.
The ad campaign for Cialis, reportedly costing $100 million for the first year, will emphasize a confident yet relaxed image, Blum said. It will portray the freedom of taking a drug that can work anytime over most of a weekend, rather than just a few hours.
"It’s much more natural," Blum said of Cialis’ window. Removing that time pressure gives men with erectile dysfunction a psychological boost, too, he added. "It goes much beyond simply being able to get an erection again."
In addition to a saturated ad campaign on TV and in print, ICOS and Lilly have signed a four-year sponsorship agreement with the PGA Tour. That tie-in to the golf world fits well with the prime demographic for Cialis: men between 40 and 65 years old.
There also will be other marketing activities in a "number of different areas," Blum promised.
While the commercials hit the airwaves, ICOS and Lilly sales representatives will hit doctors’ offices. Blum said ICOS has hired 165 reps this year, including a "large number" from Pfizer, and assigned each a territory across the United States.
"Within each territory, the ICOS rep will call on the most important doctors in terms of influence over their peers and the sheer volume of patients they treat," Blum said.
Lilly also has assembled an army of reps who will visit other doctors.
While the North American marketing efforts are critical to Cialis’ success, ICOS and Lilly also will continue their efforts elsewhere. The global marketing strategy is different, as direct-to-consumer advertising is not allowed in most countries. Instead, ICOS and Lilly have sponsored sports events, such as the America’s Cup sailing race in New Zealand, spread word about the drug among doctors and supported health advocacy groups.
"We can’t dictate the message, but we can provide support to groups and organizations giving information about erectile dysfunction to men searching for answers," Blum said.
That group is important to reach, too, as research shows that the vast majority of men with impotence, out of fear or embarrassment, haven’t tried any treatment.
Blum took the reins of the marketing team for Cialis in June 2000. The native of western North Carolina, now a resident of Seattle, brought with him nearly 13 years’ experience at Merck &Co., a global pharmaceutical firm.
The former member of the U.S. Army Special Forces and a Fulbright Scholar who has degrees from Princeton and Stanford was involved with 11 different drug launches for Merck.
But the opportunity to lead the marketing campaign for a new drug at a relatively small company attracted him to ICOS. Blum said he’s enjoyed both the creative and competitive aspects that have gone into the marketing strategy for Cialis. He also credits Lilly for giving ICOS an equal say in that strategy.
His colleagues, in turn, give Blum credit for having the vision ICOS and Lilly need to take on strong competitors.
"Leonard’s drive, dedication and enthusiasm are impossible to beat. ICOS is quite fortunate to have him driving our marketing efforts," said Kenneth Ferguson, chief operating officer of ICOS’ Cialis team.
While clearly relishing his role, Blum said he’s aware of the drug’s potential importance, not just to the men who may be helped by it, but also to ICOS. The biotech firm is counting on its success to pay back investors’ faith and also fund its research on other potential drugs.
"Cialis will hopefully make ICOS very successful, but it hopefully will also help us develop other products, become an attractive licensing partner and commercialize other drugs, too."
Reporter Eric Fetters:
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