ICOS sees a new role for Cialis
By Eric Fetters
Herald Writer
BOTHELL - ICOS Corp. is closer to breaking even, but it also has lowered sales expectations for Cialis as overall demand for erectile dysfunction drugs has stalled.
At the same time, the Bothell biotechnology company is hoping Cialis' active ingredient will help people with chronic high blood pressure - another potentially lucrative market.
Leonard Blum, ICOS senior vice president for sales and marketing, said Cialis is still gaining ground on Viagra. But the reduction of reimbursement coverage for impotence drugs in general and news about possible side effects on men's vision have suppressed sales growth since May, he said.
"We're optimistic about a modest level of growth resuming at some time in the future and persisting," Blum told investors in a conference call on Thursday.
Chief financial officer Michael Stein later predicted the erectile dysfunction drug market would begin growing again by mid-2006.
The company lowered earlier forecasts that Cialis would achieve close to $800 million in sales this year to a range of $730 to $750 million.
Despite the softness in the market, Cialis sales for the first nine months of the year increased by 34 percent over the same period of 2004. Paul Clark, ICOS chairman and chief executive officer, said the drug has gained market share in the U.S. every month since its introduction in late 2003.
That has helped ICOS greatly reduce its losses. During the third quarter, the company lost $11.5 million, or 18 cents a share, compared with a $26.6 million loss at the same time last year. That was in line with most analysts' expectations.
Clark said ICOS expects to achieve a profit in 2006, and could still eke out a tiny profit in the fourth quarter.
In October, ICOS' joint venture with Eli Lilly & Co., created to market Cialis, reported its first profitable quarter.
"Obtaining profitability and growing that level of profit has always been our objective, and we're making excellent progress on that goal," Clark said.
David Goodkin, chief medical officer at ICOS, told investors the company has begun a phase 2 study on using Cialis' active ingredient, tadalafil, to treat hypertension. The drug has demonstrated that effect in men taking Cialis for impotence, he said. An estimated 50 million Americans have high blood pressure.
ICOS also is testing tadalafil in men with a common prostate problem and another condition that affects the heart and lungs.
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