EXHIBIT 99
Date: April 20, 2006
Refer to: (317) 276-5795 - Terra Fox, Lilly
(425) 415-2207 - Lacy Fitzpatrick, ICOS
Lilly ICOS LLC Reports Results for First Quarter of 2006
- Cialis Attains Leading ED Market Share Position in Eleven Countries -
- - 2006 First Quarter Net Income Soars to $65.0 Million, Compared to Net Loss of
$41.7 Million in Prior Year Quarter -
BOTHELL, Wash. and INDIANAPOLIS, Ind. - April 20, 2006 - Lilly ICOS LLC (Lilly
ICOS) (NYSE: LLY and Nasdaq: ICOS) is releasing its financial results for the
2006 first quarter, ended March 31. Worldwide sales of Cialis(R) (tadalafil) in
the first quarter of 2006 totaled $222.7 million, an increase of 48% compared to
$150.1 million in the first quarter of 2005.
Cialis Net Sales:
- -----------------
(in millions)
Three Months Ended
March 31,
---------------------------------
2006 2005
--------------- -----------------
Lilly ICOS Territories:
United States $ 82.5 $ 42.7
Europe(1) 67.6 56.3
Canada and Mexico 17.2 12.2
--------------- -----------------
Total Lilly ICOS 167.3 111.2
Lilly Territories 55.4 38.9
--------------- -----------------
Worldwide Total $222.7 $150.1
=============== =================
In February 2006, Cialis had achieved market share leadership in eleven
countries, including France, Portugal, Saudi Arabia, South Africa and Venezuela.
In France, Cialis has been the market leader for 14 consecutive months and held
a 51% share for February 2006.(2)
"We are proud of the market share leadership Cialis has achieved," stated
Gaetano Crupi, Cialis Global Brand Development Leader for Lilly. "This time last
year, Cialis was the share leader in just five countries. As 2006 unfolds, we
- -------------------------
(1) Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland,
Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland and the United Kingdom.
(2) IMS Health, IMS MIDAS (based on PDE5 inhibitor tablets from wholesalers to
pharmacies) February 2006.
1
expect Cialis to emerge as the category leader in additional markets as share
gains continue and overall sales continue to grow."
Lilly ICOS is evaluating the use of tadalafil, the active ingredient in Cialis,
for its potential use in a number of medical indications in addition to erectile
dysfunction.
Paul Clark, ICOS Chairman and CEO, added, "At this time, we are finalizing the
design of a Phase 2b clinical study to evaluate several doses of tadalafil for
symptoms of benign prostatic hyperplasia. Patient enrollment in a multi-national
Phase 3 study in pulmonary arterial hypertension continues. And, in the second
half of 2006, we expect to announce the results of the Phase 2 proof of concept
study in hypertension. We are excited that tadalafil might benefit patients in
additional indications."
2006 First Quarter Financial Results
- ------------------------------------
For the three months ended March 31, 2006, Lilly ICOS reported net income of
$65.0 million, compared to a net loss of $41.7 million for the three months
ended March 31, 2005, primarily due to the $72.6 million increase in worldwide
sales of Cialis and a $50.5 million reduction in selling, general and
administrative expenses.
Total Lilly ICOS revenue for the 2006 first quarter was $178.4 million, compared
to $119.0 million for the first quarter of 2005. Lilly ICOS revenue for the 2006
period included $11.1 million in royalties on sales reported by Lilly, compared
to $7.8 million in royalty revenue for the first quarter of 2005. The increase
in net sales of Cialis in the U.S. includes the impact of an estimated $27
million aggregate reduction in U.S. wholesaler inventories of Cialis in the 2005
first quarter.
Cost of sales, including royalties payable equal to 5% of net product sales, was
8.0% of net product sales in the 2006 first quarter, compared to 8.8% in the
2005 first quarter. The percentage decrease was primarily due to price increases
since the beginning of 2005.
The $50.5 million decrease in selling, general and administrative expenses, in
2006 compared to 2005, was primarily due to refinements to our U.S. sales force
configuration and lower direct to consumer marketing expenditures in the 2006
first quarter.
About Lilly ICOS LLC
- --------------------
Lilly ICOS LLC, a joint venture equally owned by ICOS Corporation and Eli Lilly
and Company, is marketing Cialis in North America and Europe for the treatment
of erectile dysfunction.
ICOS Corporation, a biotechnology company headquartered in Bothell, Washington,
is dedicated to bringing innovative therapeutics to patients. ICOS is working to
develop treatments for serious unmet medical needs such as benign prostatic
hyperplasia, hypertension, pulmonary arterial hypertension, cancer and
inflammatory diseases.
Eli Lilly and Company, a leading innovation-driven corporation, is developing a
growing portfolio of first-in-class and best-in-class pharmaceutical products by
applying the latest research from its own worldwide laboratories and from
collaborations with eminent scientific organizations. Headquartered in
Indianapolis, Indiana, Lilly provides answers - through medicines and
information - for some of the world's most urgent medical needs.
2
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. Such forward-looking statements are based on
current expectations, estimates and projections about the industry, management
beliefs and certain assumptions made by the managements of ICOS and Lilly.
Investors are cautioned that matters subject to forward-looking statements
involve risks and uncertainties, including economic, competitive, governmental,
technological, legal and other factors discussed in the two companies'
respective filings with the Securities and Exchange Commission, which may affect
the business and prospects of the two companies and Lilly ICOS. Results and the
timing and outcome of events may differ materially from those expressed or
implied by the forward-looking statements in this press release. More
specifically, there can be no assurance that tadalafil will achieve sustained
commercial success or that competing products will not pre-empt market
opportunities that might exist for the product.
The forward-looking statements contained in this press release represent ICOS'
and Lilly's judgments as of the date of this release. Neither ICOS nor Lilly
undertake any obligation to update any forward-looking statements.
--Selected financial data follows--
3
Lilly ICOS LLC
Condensed Consolidated Statements of Operations
(in thousands)
(unaudited)
Three Months Ended
March 31,
-----------------------------------
2006 2005
----------------- ---------------
Revenue
Product sales, net $ 167,274 $ 111,194
Royalties 11,088 7,790
----------------- -----------------
Total revenue 178,362 118,984
----------------- -----------------
Expenses
Cost of sales 13,382 9,752
Selling, general and administrative 86,517 137,027
Research and development 13,502 13,874
----------------- -----------------
Total expenses 113,401 160,653
----------------- -----------------
Net income (loss) $ 64,961 $ (41,669)
================= =================
4
Lilly ICOS LLC
SUMMARIZED OPERATING RESULTS
(in thousands)
(unaudited)
2006 2005
--------------- ------------------------------------------------------------------------------
Q1 Q1 Q2 Q3 Q4 TOTAL
--------------- ------------- ------------- ------------- ------------- ---------------
Revenue:
Product sales, net:
United States $ 82,537 $ 42,744 $ 71,118 $ 77,438 $ 81,615 $ 272,915
Europe 67,586 56,264 60,925 61,992 65,311 244,492
Canada and Mexico 17,151 12,186 13,839 14,727 18,575 59,327
--------------- ------------- ------------- ------------- ------------- ---------------
167,274 111,194 145,882 154,157 165,501 576,734
Royalties 11,088 7,790 9,010 8,172 8,997 33,969
--------------- ------------- ------------- ------------- ------------- ---------------
178,362 118,984 154,892 162,329 174,498 610,703
--------------- ------------- ------------- ------------- ------------- ---------------
Expenses:
Cost of sales 13,382 9,752 11,934 12,378 13,200 47,264
Selling, general and
administrative 86,517 137,027 126,232 112,152 84,416 459,827
Research and development 13,502 13,874 18,413 18,035 15,494 65,816
--------------- ------------- ------------- ------------- ------------- ---------------
113,401 160,653 156,579 142,565 113,110 572,907
--------------- ------------- ------------- ------------- ------------- ---------------
Net income (loss) $ 64,961 $(41,669) $ (1,687) $ 19,764 $ 61,388 $ 37,796
=============== ============= ============= ============= ============= ===============
5