Icos (NASDAQ:ICOS)
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ICOS Corporation (Nasdaq:ICOS) today released its financial results for
the three and nine months ended September 30, 2006, and summarized
recent events.
For the three months ended September 30, 2006, ICOS reported net income
of $9.7 million ($0.15 per share), compared to a proforma net loss of
$19.3 million ($0.30 per share) for the three months ended September 30,
2005.1
Lilly ICOS’2 2006
third quarter net income grew to $79.6 million, compared to $19.8
million in the 2005 third quarter. Worldwide sales of Cialis3
in the third quarter of 2006 totaled $245.6 million, an increase of 26%
compared to $195.1 million in the third quarter of 2005.
During the third quarter of 2006, Lilly ICOS initiated a double-blind,
placebo-controlled Phase 2b clinical study to evaluate tadalafil (the
active ingredient in Cialis) as a potential treatment for the symptoms
of benign prostatic hyperplasia (BPH). Patients in the study are to be
administered one of four doses of tadalafil or placebo, once-a-day for
12 weeks. The study is designed to enroll more than 1,000 patients and
may serve as a pivotal study to support regulatory filings seeking
approval of tadalafil for the treatment of BPH.
Patient enrollment is progressing on schedule in a 400 patient,
multi-national Phase 3 study evaluating the efficacy and safety of
tadalafil in treating patients with pulmonary arterial hypertension.
Later this year, Lilly ICOS expects to file, with the FDA, for an
expanded indication for Cialis, as a once-a-day treatment for men with
erectile dysfunction. Regulatory filings for Cialis, as a once-a-day
treatment for erectile dysfunction, occurred in Europe and Canada in
mid-2006.
A Lilly ICOS proof-of-concept Phase 2 study, in hypertension, was
recently completed, in which 180 patients were dosed once-a-day with 5
mg tadalafil, 20 mg tadalafil, or placebo, for eight weeks. The results
were consistent with results previously reported from clinical
pharmacology studies conducted for the ED indication. Patients in the 5
mg tadalafil group had a mean blood pressure decline of 5.5/7.5 mm Hg.
Patients in the 20 mg tadalafil group had a mean blood pressure decline
of 5.5/8.3 mm Hg. Results at both doses were statistically significantly
better than the mean 2.1/3.0 mm Hg decrease noted among patients in the
placebo group. Treatment was well tolerated by the men and women in the
study. Dyspepsia and headache were the most frequent adverse events. The
magnitude of reduction in blood pressure induced by tadalafil in this
clinical trial would likely be insufficient for tadalafil to compete
successfully in the broad hypertension marketplace for first line
therapy. Lilly ICOS is considering next steps for this program.
Our 50% share of Lilly ICOS earnings was $40.0 million in the third
quarter of 2006, compared to $10.0 million in the third quarter of 2005.
The $30.0 million improvement primarily reflects growth in the sales of
Cialis around the world and planned reductions in marketing and selling
expenses.
ICOS Corporation’s total revenue was $20.6
million in the third quarter of 2006, compared to $20.8 million in the
third quarter of 2005.
Collaboration revenue from Lilly ICOS totaled $16.4 million in the 2006
third quarter, compared to $13.6 million in the third quarter of 2005.
The increase primarily reflects reimbursable costs of 40 contract
(non-employee) sales representatives retained to promote Cialis in the
U.S. beginning in January 2006.
Co-promotion services revenue was $1.8 million in the 2005 third
quarter, representing fees earned under a co-promotion arrangement which
ended in December 2005.
Total operating expenses were $51.3 million for the three months ended
September 30, 2006, compared to proforma $49.9 million for the three
months ended September 30, 2005. Operating expenses for the three months
ended September 30, 2006 include $5.4 million in stock option expense,
due to a change in accounting for employee stock options effective
January 1, 2006. On a proforma basis, operating expenses for the three
months ended September 30, 2005 include $7.9 million in stock option
expense.
For the nine months ended September 30, 2006, ICOS reported net income
of $15.1 million ($0.23 per share), compared to a proforma net loss of
$104.0 million ($1.63 per share) for the nine months ended September 30,
2005.4
At September 30, 2006, we had cash, cash equivalents, investment
securities and associated interest receivable of $187.8 million.
On October 17, 2006, ICOS announced that it had entered into an
Agreement and Plan of Merger with Eli Lilly and Company, whereby Lilly
will acquire all of the outstanding stock of ICOS for a purchase price
of $32 per share in cash. Closing of the transaction is expected around
2006 year-end, subject to approval by the shareholders of ICOS and other
customary closing conditions.
ICOS Corporation, a biotechnology company headquartered in Bothell,
Washington, is dedicated to bringing innovative therapeutics to
patients. Through Lilly ICOS LLC, ICOS is marketing its first product,
Cialis (tadalafil), for the treatment of erectile dysfunction. ICOS is
working to develop treatments for serious unmet medical needs such as
benign prostatic hyperplasia, hypertension, pulmonary arterial
hypertension, cancer and inflammatory diseases.
Except for historical information contained herein, this press release
contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements involve risks and uncertainties that may cause our results
and the timing and outcome of events to differ materially from those
expressed in or implied by the forward-looking statements, including
risks associated with product commercialization, research and clinical
development, regulatory approvals, manufacturing, collaboration
arrangements, liquidity, competition, intellectual property claims,
litigation and other risks detailed in our latest Quarterly Report on
Form 10-Q and our other public filings with the Securities and Exchange
Commission.
The forward-looking statements contained in this press release represent
our judgment as of the date of this release. We undertake no obligation
to publicly update any forward-looking statements. The biotechnology and
pharmaceutical businesses are risky and there can be no assurance that
any of our products or product candidates will achieve commercial
success or that competing therapies will not pre-empt market
opportunities that might exist for any of our products or product
candidates.
Where to Find Additional Information About the Proposed Acquisition by
Eli Lilly and Company
A special shareholder meeting will be announced soon to obtain
shareholder approval of the proposed transaction. ICOS intends to file
with the Securities and Exchange Commission (SEC) a proxy statement and
other relevant documents in connection with the proposed transaction.
Investors of ICOS are urged to read the definitive proxy statement and
other relevant materials when they become available because they will
contain important information about ICOS, Lilly and the proposed
transaction. Investors may obtain a free copy of these materials (when
they are available) and other documents filed by ICOS with the SEC at
the SEC's website at www.sec.gov, at
ICOS Corporation's website at www.ICOS.com
or by sending a written request to ICOS Corporation at 22021 20th Avenue
SE, Bothell, Washington 98021, Attention: Corporate Secretary.
ICOS and its directors, executive officers and certain other members of
management and employees may be deemed to be participants in soliciting
proxies from its shareholders in favor of the proposed merger.
Information regarding the persons who may, under the rules of the SEC,
be considered to be participants in the solicitation of ICOS'
shareholders in connection with the proposed transaction will be set
forth in ICOS' proxy statement for its special meeting. Additional
information regarding these individuals and any interest they have in
the proposed transaction will be set forth in the definitive proxy
statement when it is filed with the SEC.
1 Proforma net loss of $19.3 million ($0.30 per
share) reflects previously reported net loss of $11.4 million ($0.18 per
share), plus $7.9 million of proforma stock option expense as if we had
adopted FAS 123R at the beginning of 2005.
2 Lilly ICOS LLC (Lilly ICOS) is a 50/50 joint
venture between ICOS Corporation and Eli Lilly and Company that is
marketing Cialis in North America and Europe.
3 Cialis® is a
registered trademark of Lilly ICOS LLC.
4 Proforma net loss of $104.0 million ($1.63
per share) reflects previously reported net loss of $80.4 million ($1.26
per share), plus $23.6 million of proforma stock option expense as if we
had adopted FAS 123R at the beginning of 2005.
ICOS Corporation and Subsidiaries
Schedule 1 - SELECTED CONSOLIDATED FINANCIAL DATA
(in thousands, except per share data)
(unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2005
2005
2006
Proforma (a)
As Reported
2006
Proforma (a)
As Reported
Condensed Consolidated
Statements of Operations:
Revenue:
Lilly ICOS collaboration
$
16,375
$
13,628
$
13,628
$
47,247
$
36,681
$
36,681
Contract manufacturing
4,265
5,347
5,347
10,668
11,323
11,323
Co-promotion services
-
1,791
1,791
-
4,634
4,634
Total revenue
20,640
20,766
20,766
57,915
52,638
52,638
Equity in earnings (losses) of Lilly ICOS
39,974
10,038
10,038
110,650
(11,330)
(11,330)
Operating expenses:
Research and development
25,343
24,516
21,435
76,911
74,581
64,943
Marketing and selling
13,168
11,938
10,871
39,798
35,178
31,854
Cost of contract manufacturing
4,641
4,726
4,350
11,430
10,464
9,432
General and administrative
8,121
8,676
5,324
25,056
24,880
15,296
Total operating expenses
51,273
49,856
41,980
153,195
145,103
121,525
Operating income (loss)
9,341
(19,052)
(11,176)
15,370
(103,795)
(80,217)
Other income (expense):
Interest expense
(1,704)
(1,704)
(1,704)
(5,113)
(5,113)
(5,113)
Interest and other income
2,302
1,426
1,426
5,479
4,867
4,867
Income (loss) before income taxes
9,939
(19,330)
(11,454)
15,736
(104,041)
(80,463)
Provision for income taxes
220
-
-
595
-
-
Net income (loss)
$
9,719
$
(19,330)
$
(11,454)
$
15,141
$
(104,041)
$
(80,463)
Net income (loss) per common share - basic and diluted
$
0.15
$
(0.30)
$
(0.18)
$
0.23
$
(1.63)
$
(1.26)
Weighted average common shares outstanding - basic
64,552
64,075
64,075
64,450
63,940
63,940
Weighted average common shares outstanding - diluted
65,223
64,075
64,075
65,165
63,940
63,940
Condensed Consolidated Balance Sheets:
September 30,
December 31,
2006
2005
Cash, cash equivalents,investment securities and
interest receivable
$
187,805
$
162,782
Receivable from Lilly ICOS
22,138
14,300
Investment in Lilly ICOS
46,502
35,497
Property and equipment, net
18,269
17,995
Deferred financing costs and other
9,921
11,193
Total assets
$
284,635
$
241,767
Current liabilities
$
23,600
$
22,387
Convertible subordinated debt
278,650
278,650
Stockholders' deficit
(17,615)
(59,270)
Total liabilities and stockholders' deficit
$
284,635
$
241,767
(a)
Effective January 1, 2006, we adopted Statement of Financial
Accounting Standards No. 123 (revised 2004), "Share-Based
Payment" (FAS 123R) and began recognizing expense for all
stock options. 2005 proforma amounts reflect our results of
operations as if we had applied the provisions of FAS 123R
beginning January 1, 2005.
ICOS Corporation and Subsidiaries
Schedule 2 - SUMMARIZED OPERATING RESULTS OF LILLY ICOS LLC
(in thousands)
(unaudited)
2006
2005
Q1
Q2
Q3
Total
Q1
Q2
Q3
Q4
TOTAL
Revenue:
Product sales, net
United States
$ 82,537
$ 93,779
$ 94,946
$ 271,262
$ 42,744
$ 71,118
$ 77,438
$ 81,615
$ 272,915
Europe
67,586
71,374
75,427
214,387
56,264
60,925
61,992
65,311
244,492
Canada and Mexico
17,151
17,508
20,205
54,864
12,186
13,839
14,727
18,575
59,327
167,274
182,661
190,578
540,513
111,194
145,882
154,157
165,501
576,734
Royalties
11,088
11,642
11,008
33,738
7,790
9,010
8,172
8,997
33,969
Total revenue
178,362
194,303
201,586
574,251
118,984
154,892
162,329
174,498
610,703
Expenses:
Cost of sales (a)
13,382
14,370
15,031
42,783
9,752
11,934
12,378
13,200
47,264
Selling, general and administrative
86,517
90,342
91,830
268,689
137,027
126,232
112,152
84,416
459,827
Research and development
13,502
13,820
15,087
42,409
13,874
18,413
18,035
15,494
65,816
Total expenses
113,401
118,532
121,948
353,881
160,653
156,579
142,565
113,110
572,907
Net income (loss)
$ 64,961
$ 75,771
$ 79,638
$ 220,370
$ (41,669)
$ (1,687)
$ 19,764
$ 61,388
$ 37,796
ICOS Corporation's share of net income (loss)
$ 32,636
$ 38,040
$ 39,974
$ 110,650
$ (20,679)
$ (689)
$ 10,038
$ 30,849
$ 19,519
(a)
Cost of sales includes $103 per month of license fee amortization
applicable only to Eli Lilly and Company's interest in Lilly ICOS.
ICOS Corporation (Nasdaq:ICOS) today released its financial
results for the three and nine months ended September 30, 2006, and
summarized recent events.
For the three months ended September 30, 2006, ICOS reported net
income of $9.7 million ($0.15 per share), compared to a proforma net
loss of $19.3 million ($0.30 per share) for the three months ended
September 30, 2005.(1)
Lilly ICOS'(2) 2006 third quarter net income grew to $79.6
million, compared to $19.8 million in the 2005 third quarter.
Worldwide sales of Cialis(3) in the third quarter of 2006 totaled
$245.6 million, an increase of 26% compared to $195.1 million in the
third quarter of 2005.
During the third quarter of 2006, Lilly ICOS initiated a
double-blind, placebo-controlled Phase 2b clinical study to evaluate
tadalafil (the active ingredient in Cialis) as a potential treatment
for the symptoms of benign prostatic hyperplasia (BPH). Patients in
the study are to be administered one of four doses of tadalafil or
placebo, once-a-day for 12 weeks. The study is designed to enroll more
than 1,000 patients and may serve as a pivotal study to support
regulatory filings seeking approval of tadalafil for the treatment of
BPH.
Patient enrollment is progressing on schedule in a 400 patient,
multi-national Phase 3 study evaluating the efficacy and safety of
tadalafil in treating patients with pulmonary arterial hypertension.
Later this year, Lilly ICOS expects to file, with the FDA, for an
expanded indication for Cialis, as a once-a-day treatment for men with
erectile dysfunction. Regulatory filings for Cialis, as a once-a-day
treatment for erectile dysfunction, occurred in Europe and Canada in
mid-2006.
A Lilly ICOS proof-of-concept Phase 2 study, in hypertension, was
recently completed, in which 180 patients were dosed once-a-day with 5
mg tadalafil, 20 mg tadalafil, or placebo, for eight weeks. The
results were consistent with results previously reported from clinical
pharmacology studies conducted for the ED indication. Patients in the
5 mg tadalafil group had a mean blood pressure decline of 5.5/7.5 mm
Hg. Patients in the 20 mg tadalafil group had a mean blood pressure
decline of 5.5/8.3 mm Hg. Results at both doses were statistically
significantly better than the mean 2.1/3.0 mm Hg decrease noted among
patients in the placebo group. Treatment was well tolerated by the men
and women in the study. Dyspepsia and headache were the most frequent
adverse events. The magnitude of reduction in blood pressure induced
by tadalafil in this clinical trial would likely be insufficient for
tadalafil to compete successfully in the broad hypertension
marketplace for first line therapy. Lilly ICOS is considering next
steps for this program.
Our 50% share of Lilly ICOS earnings was $40.0 million in the
third quarter of 2006, compared to $10.0 million in the third quarter
of 2005. The $30.0 million improvement primarily reflects growth in
the sales of Cialis around the world and planned reductions in
marketing and selling expenses.
ICOS Corporation's total revenue was $20.6 million in the third
quarter of 2006, compared to $20.8 million in the third quarter of
2005.
Collaboration revenue from Lilly ICOS totaled $16.4 million in the
2006 third quarter, compared to $13.6 million in the third quarter of
2005. The increase primarily reflects reimbursable costs of 40
contract (non-employee) sales representatives retained to promote
Cialis in the U.S. beginning in January 2006.
Co-promotion services revenue was $1.8 million in the 2005 third
quarter, representing fees earned under a co-promotion arrangement
which ended in December 2005.
Total operating expenses were $51.3 million for the three months
ended September 30, 2006, compared to proforma $49.9 million for the
three months ended September 30, 2005. Operating expenses for the
three months ended September 30, 2006 include $5.4 million in stock
option expense, due to a change in accounting for employee stock
options effective January 1, 2006. On a proforma basis, operating
expenses for the three months ended September 30, 2005 include $7.9
million in stock option expense.
For the nine months ended September 30, 2006, ICOS reported net
income of $15.1 million ($0.23 per share), compared to a proforma net
loss of $104.0 million ($1.63 per share) for the nine months ended
September 30, 2005.(4)
At September 30, 2006, we had cash, cash equivalents, investment
securities and associated interest receivable of $187.8 million.
On October 17, 2006, ICOS announced that it had entered into an
Agreement and Plan of Merger with Eli Lilly and Company, whereby Lilly
will acquire all of the outstanding stock of ICOS for a purchase price
of $32 per share in cash. Closing of the transaction is expected
around 2006 year-end, subject to approval by the shareholders of ICOS
and other customary closing conditions.
ICOS Corporation, a biotechnology company headquartered in
Bothell, Washington, is dedicated to bringing innovative therapeutics
to patients. Through Lilly ICOS LLC, ICOS is marketing its first
product, Cialis (tadalafil), for the treatment of erectile
dysfunction. ICOS is working to develop treatments for serious unmet
medical needs such as benign prostatic hyperplasia, hypertension,
pulmonary arterial hypertension, cancer and inflammatory diseases.
Except for historical information contained herein, this press
release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve risks and uncertainties that may
cause our results and the timing and outcome of events to differ
materially from those expressed in or implied by the forward-looking
statements, including risks associated with product commercialization,
research and clinical development, regulatory approvals,
manufacturing, collaboration arrangements, liquidity, competition,
intellectual property claims, litigation and other risks detailed in
our latest Quarterly Report on Form 10-Q and our other public filings
with the Securities and Exchange Commission.
The forward-looking statements contained in this press release
represent our judgment as of the date of this release. We undertake no
obligation to publicly update any forward-looking statements. The
biotechnology and pharmaceutical businesses are risky and there can be
no assurance that any of our products or product candidates will
achieve commercial success or that competing therapies will not
pre-empt market opportunities that might exist for any of our products
or product candidates.
Where to Find Additional Information About the Proposed
Acquisition by Eli Lilly and Company
A special shareholder meeting will be announced soon to obtain
shareholder approval of the proposed transaction. ICOS intends to file
with the Securities and Exchange Commission (SEC) a proxy statement
and other relevant documents in connection with the proposed
transaction. Investors of ICOS are urged to read the definitive proxy
statement and other relevant materials when they become available
because they will contain important information about ICOS, Lilly and
the proposed transaction. Investors may obtain a free copy of these
materials (when they are available) and other documents filed by ICOS
with the SEC at the SEC's website at www.sec.gov, at ICOS
Corporation's website at www.ICOS.com or by sending a written request
to ICOS Corporation at 22021 20th Avenue SE, Bothell, Washington
98021, Attention: Corporate Secretary.
ICOS and its directors, executive officers and certain other
members of management and employees may be deemed to be participants
in soliciting proxies from its shareholders in favor of the proposed
merger. Information regarding the persons who may, under the rules of
the SEC, be considered to be participants in the solicitation of ICOS'
shareholders in connection with the proposed transaction will be set
forth in ICOS' proxy statement for its special meeting. Additional
information regarding these individuals and any interest they have in
the proposed transaction will be set forth in the definitive proxy
statement when it is filed with the SEC.
(1) Proforma net loss of $19.3 million ($0.30 per share) reflects
previously reported net loss of $11.4 million ($0.18 per share), plus
$7.9 million of proforma stock option expense as if we had adopted FAS
123R at the beginning of 2005.
(2) Lilly ICOS LLC (Lilly ICOS) is a 50/50 joint venture between
ICOS Corporation and Eli Lilly and Company that is marketing Cialis in
North America and Europe.
(3) Cialis(R) is a registered trademark of Lilly ICOS LLC.
(4) Proforma net loss of $104.0 million ($1.63 per share) reflects
previously reported net loss of $80.4 million ($1.26 per share), plus
$23.6 million of proforma stock option expense as if we had adopted
FAS 123R at the beginning of 2005.
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*T
ICOS Corporation and Subsidiaries
Schedule 1 - SELECTED CONSOLIDATED FINANCIAL DATA
(in thousands, except per share data)
(unaudited)
Three Months Ended September 30,
--------------------------------
2005
--------------------
Proforma As
2006 (a) Reported
--------------------------------
Condensed Consolidated
Statements of Operations:
Revenue:
Lilly ICOS collaboration $ 16,375 $ 13,628 $ 13,628
Contract manufacturing 4,265 5,347 5,347
Co-promotion services - 1,791 1,791
----------- --------- ---------
Total revenue 20,640 20,766 20,766
----------- --------- ---------
Equity in earnings (losses) of Lilly
ICOS 39,974 10,038 10,038
----------- --------- ---------
Operating expenses:
Research and development 25,343 24,516 21,435
Marketing and selling 13,168 11,938 10,871
Cost of contract manufacturing 4,641 4,726 4,350
General and administrative 8,121 8,676 5,324
----------- --------- ---------
Total operating expenses 51,273 49,856 41,980
----------- --------- ---------
Operating income (loss) 9,341 (19,052) (11,176)
Other income (expense):
Interest expense (1,704) (1,704) (1,704)
Interest and other income 2,302 1,426 1,426
----------- --------- ---------
Income (loss) before income taxes 9,939 (19,330) (11,454)
Provision for income taxes 220 - -
----------- --------- ---------
Net income (loss) $ 9,719 $ (19,330) $(11,454)
=========== ========= =========
Net income (loss) per common share -
basic and diluted $ 0.15 $ (0.30) $ (0.18)
=========== ========= =========
Weighted average common shares
outstanding - basic 64,552 64,075 64,075
=========== ========= =========
Weighted average common shares
outstanding - diluted 65,223 64,075 64,075
=========== ========= =========
Nine Months Ended September 30,
--------------------------------
2005
--------------------
Proforma As
2006 (a) Reported
--------------------------------
Condensed Consolidated
Statements of Operations:
Revenue:
Lilly ICOS collaboration $ 47,247 $ 36,681 $ 36,681
Contract manufacturing 10,668 11,323 11,323
Co-promotion services - 4,634 4,634
------------ --------- ---------
Total revenue 57,915 52,638 52,638
------------ --------- ---------
Equity in earnings (losses) of Lilly
ICOS 110,650 (11,330) (11,330)
------------ --------- ---------
Operating expenses:
Research and development 76,911 74,581 64,943
Marketing and selling 39,798 35,178 31,854
Cost of contract manufacturing 11,430 10,464 9,432
General and administrative 25,056 24,880 15,296
------------ --------- ---------
Total operating expenses 153,195 145,103 121,525
------------ --------- ---------
Operating income (loss) 15,370 (103,795) (80,217)
Other income (expense):
Interest expense (5,113) (5,113) (5,113)
Interest and other income 5,479 4,867 4,867
------------ --------- ---------
Income (loss) before income taxes 15,736 (104,041) (80,463)
Provision for income taxes 595 - -
------------ --------- ---------
Net income (loss) $ 15,141 $(104,041) $(80,463)
============ ========= =========
Net income (loss) per common share -
basic and diluted $ 0.23 $ (1.63) $ (1.26)
============ ========= =========
Weighted average common shares
outstanding - basic 64,450 63,940 63,940
============ ========= =========
Weighted average common shares
outstanding - diluted 65,165 63,940 63,940
============ ========= =========
*T
-0-
*T
Condensed Consolidated Balance Sheets: September 30, December 31,
2006 2005
-------------- -------------
Cash, cash equivalents,
investment securities and
interest receivable $ 187,805 $ 162,782
Receivable from Lilly ICOS 22,138 14,300
Investment in Lilly ICOS 46,502 35,497
Property and equipment, net 18,269 17,995
Deferred financing costs and other 9,921 11,193
-------------- -------------
Total assets $ 284,635 $ 241,767
============== =============
Current liabilities $ 23,600 $ 22,387
Convertible subordinated debt 278,650 278,650
Stockholders' deficit (17,615) (59,270)
-------------- -------------
Total liabilities and stockholders'
deficit $ 284,635 $ 241,767
============== =============
(a)Effective January 1, 2006, we adopted Statement of Financial
Accounting Standards No. 123 (revised 2004), "Share-Based Payment"
(FAS 123R) and began recognizing expense for all stock options.
2005 proforma amounts reflect our results of operations as if we
had applied the provisions of FAS 123R beginning January 1, 2005.
*T
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*T
ICOS Corporation and Subsidiaries
Schedule 2 - SUMMARIZED OPERATING RESULTS OF LILLY ICOS LLC
(in thousands)
(unaudited)
2006
------------------------------------
Q1 Q2 Q3 Total
-------- -------- -------- ---------
Revenue:
Product sales, net
United States $82,537 $93,779 $94,946 $271,262
Europe 67,586 71,374 75,427 214,387
Canada and Mexico 17,151 17,508 20,205 54,864
-------- -------- -------- ---------
167,274 182,661 190,578 540,513
Royalties 11,088 11,642 11,008 33,738
-------- -------- -------- ---------
Total revenue 178,362 194,303 201,586 574,251
-------- -------- -------- ---------
Expenses:
Cost of sales (a) 13,382 14,370 15,031 42,783
Selling, general and
administrative 86,517 90,342 91,830 268,689
Research and development 13,502 13,820 15,087 42,409
-------- -------- -------- ---------
Total expenses 113,401 118,532 121,948 353,881
-------- -------- -------- ---------
Net income (loss) $64,961 $75,771 $79,638 $220,370
======== ======== ======== =========
ICOS Corporation's share of net
income (loss) $32,636 $38,040 $39,974 $110,650
======== ======== ======== =========
2005
----------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
--------- -------- -------- -------- ---------
Revenue:
Product sales, net
United States $42,744 $71,118 $77,438 $81,615 $272,915
Europe 56,264 60,925 61,992 65,311 244,492
Canada and Mexico 12,186 13,839 14,727 18,575 59,327
--------- -------- -------- -------- ---------
111,194 145,882 154,157 165,501 576,734
Royalties 7,790 9,010 8,172 8,997 33,969
--------- -------- -------- -------- ---------
Total revenue 118,984 154,892 162,329 174,498 610,703
--------- -------- -------- -------- ---------
Expenses:
Cost of sales (a) 9,752 11,934 12,378 13,200 47,264
Selling, general and
administrative 137,027 126,232 112,152 84,416 459,827
Research and
development 13,874 18,413 18,035 15,494 65,816
--------- -------- -------- -------- ---------
Total expenses 160,653 156,579 142,565 113,110 572,907
--------- -------- -------- -------- ---------
Net income (loss) $(41,669) $(1,687) $19,764 $61,388 $37,796
========= ======== ======== ======== =========
ICOS Corporation's
share of net income
(loss) $(20,679) $(689) $10,038 $30,849 $19,519
========= ======== ======== ======== =========
*T
-0-
*T
(a) Cost of sales includes $103 per month of license fee amortization
applicable only to Eli Lilly and Company's interest in Lilly
ICOS.
*T