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Biotech / Medical : Neurocrine Biosciences (NBIX) -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (1387)	2/26/2005 11:47:09 AM
From: DewDiligence_on_SI	Read Replies (2) \| Respond to of 1834

[From the same 10K]: Starting in 2007, we are required to assume a portion of the sales and marketing responsibilities in all territories where Cialis is sold by Lilly ICOS. The Lilly Icos JV is responsible for Cialis in N. America and Europe only. LLY is solely responsible for Cialis in the rest of the world. Your statement in #1383: “Further, ICOS has to assume some sales and marketing responsibilities in Canada, Mexico and five European countries in 2006, and the REST OF THE WORLD in 2007.” was simply wrong. You should retract it.

To: Biomaven who wrote (1387)	2/26/2005 3:23:23 PM
From: Icebrg	Read Replies (1) \| Respond to of 1834

This is a somewhat complicated, but if I understand this correctly, the effect on Icos may not be as bad as one would assume. When Icos takes on more of the responsibility for sales and marketing costs the profit in the joint venture will increase. But half of that profit will come back to Icos as their part in the profit sharing for the J/V. Through 2004 100 % of these costs were covered. Starting 2005 only 60 % will be reimbursed. The J/V will gain 40 %, out of which 20 % will be due to Icos. At least accounting-wise. So, there will be a hit on the P&L, but not as severe as one might expect. Erik