Sales of Cialis continue to soar

Published 9:00 pm Thursday, October 19, 2006

BOTHELL – Sales of Cialis, the erectile dysfunction drug sold jointly by Bothell’s ICOS Corp. and Eli Lilly &Co., reached a record level of nearly $246 million in the third quarter.

That was 26 percent higher than the drug’s sales in the same quarter of 2005.

The Lilly ICOS joint venture reported net income of $80 million for the period, compared to less than $20 million last year. Expenses for marketing, administration and research all were down in the latest quarter.

Paul Latta, analyst with Seattle’s McAdams Wright Ragen, said Cialis sales were slightly above what he had forecasted. He’s estimating the drug will bring in up to $950 million for Lilly ICOS this year.

Cialis, which has generated more than $700 million in sales during the first nine months of 2006, helped to propel ICOS into the largest biotechnology firm based in Washington state.

The near-blockbuster drug also has profited Lilly, which partnered with ICOS in 1998 to bring the drug to market.

On Tuesday, Lilly announced it will buy ICOS, primarily to gain full ownership of Cialis, for $2.1 billion. The deal, subject to shareholders’ votes and regulatory approval, could be completed before the year ends.

That will significantly reduce Lilly’s costs in selling Cialis, which is expected to exceed $1 billion in sales next year.

Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.