Lilly/Icos says sales of Cialis jumped 28 percent
There is great news for manufacturer of Cialis, because its product peak the level of $269.2 million in the fourth quarter what means a 28 percent rise according to the last year.
According to a Thursday’s statement made by medicine makers Eli Lilly & Co. and Bothell-based Icos, who co-market Cialis, this product made $746 million income in 2005 and then $971 million in worldwide sales in 2006.
Lilly Icos said that rise of the profit $320.3 million in 2006 towards $37.8 million in the year before is merit of that sales goes up and companies don’t have to spend so much money on the advertisements of the product.
In 2006 sales Icos sales forecast was estimated at $955 million, however Cialis, with price about $12 per pill beat this number and reach $965 million. Forecasts for the year 2007 are estimated about $1.1 billion. According to the IMS Health, the drug market researchers, Cialis holds about 27 percent of the U.S. market, trailing only Viagra produced by Pfizer.
Chris Raymond, analyst with Robert W. Baird in Chicago, said: “They beat our numbers in the U.S., they beat them in Europe, in Canada, Mexico and the rest of the world”. He had also forecasted $240 million in worldwide fourth-quarter Cialis sales. “It’s clear why people think Lilly is getting a good deal,” he claims.
Raymond based his forecasts on the offer made by Eli Lilly to the Icos. Indianapolis-based drug maker would give Icos $34 a share or $2.28 billion for acquiring it. This deal would give Eli Lilly overall control on the Cialis’ market and eliminate the need to split profits with Icos.
On the Jan. 25 Icos shareholders will vote for or against the transaction.
HealthCor Management, a company based in New York which had about 5 percent of Icos shares said that price offered by Eli Lilly is to low and the company is worth at least $40 per share. Its estimations based on the rising popularity of Cialis and its potential to treat enlarged prostate and pulmonary arterial hypertension.
In February Lilly Icos, forecasted a profit from whole year would be about $210 million to $240 million. However Cialis’ performance beat all forecasts by raising its annual forecast two more times during the year, what beat the highest forecast made by Lilly Icos.
John Schroer, a member of the HealthCor investment team said: “Once again, the guidance that Icos gave on Dec. 14 proved to be overly conservative,” and he also added: “It reinforces the HealthCor position that Icos is worth substantially more than the current Lilly proposal of $34 a share.”