BOTHELL – ICOS Corp. is aggressively marketing Cialis as a better erectile dysfunction treatment than Viagra, but it also plans to see if the drug can help other medical conditions.
The Bothell-based biotechnology company said Monday that it will begin clinical trials later this year to see if Cialis is helpful against a common condition of the prostate.
ICOS also announced, along with its first-quarter results, that it is giving away vouchers that patients can use to buy Cialis or its rivals, Viagra and Levitra, as part of a new promotional program.
The program comes as Cialis, which was approved by the U.S. Food and Drug Administration in November, continues to gain market share. Worldwide, the drug posted sales of $108 million in the first quarter.
“We’re delighted with the performance of Cialis during its first full quarter on the market in the United States. We’re seeing early and immediate favorable response from both patients and prescribers,” said Paul Clark, ICOS’ chief executive officer, during Monday’s conference call with investors.
During the quarter, ICOS lost $86.3 million, or $1.36 per share, compared to a net loss of $40.5 million for the same period last year.
The larger loss, which was in line with most analysts’ predictions, was caused primarily by the huge costs associated with advertising Cialis and launching the national sales force for the prescription drug.
As sales of Cialis gained momentum, revenue during the quarter grew from $7.1 million in 2003 to $16.5 million this year.
ICOS is predicting Cialis will produce sales of $500 million to $600 million this year.
To accelerate the drug’s growth, however, ICOS announced the “Cialis Challenge” on Monday. Under the promotional program, ICOS and its partner in the drug, Eli Lilly &Co., are offering free samples to patients who get a doctor’s prescription. After taking the sample, patients who fill out a survey can then receive a voucher good for the purchase of Cialis or its rival drugs.
Leonard Blum, senior vice president for sales and marketing for ICOS, said that shows the company’s confidence in patients’ preference for Cialis. So far, he said, the “overwhelming majority” of vouchers had been used to purchase Cialis.
Men may have another reason to get Cialis prescriptions in the future as well. David Goodkin, ICOS’ chief medical officer and vice president of development, said the company will begin phase 2 tests this year to see whether the drug can treat benign prostatic hyperplasia.
The condition, which describes the common enlargement of the prostate as men age, can cause more frequent urination and related symptoms. In Europe and the United States during 2000, 4.5 million men visited a doctor about the condition, according to the National Institutes of Health.
Goodkin said the drug, if approved for the second use, may not be marketed under the brand name Cialis to patients with prostate conditions. He added that Cialis’ active ingredient tadalafil may be able to treat several medical problems.
“We will continue to study and consider many additional indications for Cialis and tadalafil,” Goodkin said.
Paul Latta, an analyst at McAdams Wright Ragen in Seattle, said he had expected ICOS to announce that Cialis would be tested for a heart-related ailment, as Viagra’s maker is looking at that possibility for its drug. That would treat a relatively small group of patients, however.
“But benign prostate hyperplasia, on the other hand, is quite a significant market. So if it works, that’s big news,” Latta said.
Before the quarterly results were announced Monday, ICOS’ stock closed at $32.20 a share.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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