ICOS Hurt By Weak Outlook For Cialis
Peter Kang, 11.16.05, 4:05 PM ET
Standard & Poor's Equity Research downgraded shares of ICOS (nasdaq: ICOS - news - people ) to "hold" from "buy," citing weakness in the erectile dysfunction market.
"While we expect ICOS to turn profitable in 2006, we are increasingly concerned about the growth rate of the U.S. erectile dysfunction market and prescription growth of Cialis (from ICOS joint venture)," wrote analyst Frank DiLorenzo, in a client note.
The October prescription share for Cialis was 26%, a slight drop from 26.5% in the previous month, according to IMS Health
DiLorenzo maintained a price target of $33 and continues to see a loss of $1.28 per share in 2005 and a profit of 35 cents per share in 2006. "However, we are less confident of our 2006 EPS view amid Cialis market weakness," he noted.
Cialis is marketed by Lilly ICOS, a joint venture of ICOS and Eli Lilly (nyse: LLY - news - people ). |
