Herald Writer
Bothell-based ICOS Corp. on Monday became the first Snohomish County company named to the NASDAQ 100, the index viewed as a proxy for the stock market’s technology sector.
ICOS was among 13 companies named to the index to replace 13 that will be deleted Dec. 24. Among the newcomers were Cephalon, a Pennsylvania bio-technology company, and Symantec, the Internet security company. Seattle’s RealNetworks Inc. and California’s 3Com Corp. were among those to be dropped next week.
ICOS, which has eight drugs in development, has grown in just over a decade to employ about 465 people. It has a market capitalization of about $3.4 billion.
The NASDAQ 100, typically the 100 biggest nonfinancial companies trading on the NASDAQ exchange, is the index tracked by the popular "QQQ" securities traded on the American Stock Exchange. The index soared 85 percent in 1998 and 102 percent in 1999. But it has dropped 37 percent in 2000 and fell another 31 percent this year.
The inclusion of biotechnology companies such as ICOS and Cephalon, which makes drugs to treat neurological and sleep disorders, cancer and pain, show the increasing importance of that sector in the investment world.
"ICOS’ addition to the NASDAQ 100 should serve as encouragement to young, start-up biotechnology firms that are also targeting serious medical conditions," said Gary L. Wilcox, executive vice president of operations for ICOS. "Since operations began in 1990, ICOS has developed a robust pipeline based on a strong scientific foundation."
The ICOS drug candidate closest to market release is the impotence drug Cialis, which the company is developing in partnership with Eli Lilly. Cialis is awaiting approval from the U.S. Food and Drug Administration, and Wilcox said he expects it to go on sale next year.
In a recent Forbes.com article, securities analyst Leonard Yaffe was quoted as saying the drug would be expected to bring in $200 million next year, $600 million in 2003 and more thereafter.
Other ICOS drugs in development would attack psoriasis, sepsis and pulmonary hypertension.
ICOS, which has seen the value of its stock grow by nearly 20 percent this year, posted another gain Monday. It rose 76 cents a share, closing at $62.42 in regular trading.
In a statement, Nasdaq said the 13 new issues to be introduced into the index are: ImClone Systems Inc (IMCL), Charter Communications Inc (CHTR), CDW Computer Centers Inc. (CDWC), Symantec Corp. (SYMC), Sepracor Inc. (SEPR), Invitrogen Corp. (IVGN), Express Scripts Inc. (ESRX), Cephalon Inc. (CEPH), ICOS Corp. (ICOS), Cytyc Corp. (CYTC), Protein Design Labs Inc. (PDLI), Integrated Device Technology Inc. (IDTI) and Synopsys Inc. (SNPS).
They will replace the 13 issues that will be removed: Ariba Inc. (ARBA), BroadVision Inc. (BVSN), CMGI Inc. (CMGI), CNET Networks Inc. (CNET), 3Com Corp. (COMS), Inktomi Corp. (INKT), Level 3 Communications Inc. (LVLT), McLeodUSA Inc. (MCLD), Metromedia Fiber Network Inc. (MFNX), Novell Inc. (NOVL), Palm Inc. (PALM), Parametric Technology Corp. (PMTC) and RealNetworks Inc. (RNWK).
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