Lilly Icos releases 2006 financial results

Lilly Icos, a joint venture between Eli Lilly and Icos to market a single compound, erectile dysfunction treatment Cialis, has reported its financial results for the 2006 fiscal year.

In the year ended December 31st 2006, the company recorded a net income of $320.3 million (162.24 million pounds), compared to $37.8 million for the previous year. The company reports that this increase was primarily due to an increase in global sales of Cialis.

Revenues for the year grew from $610.7 million in 2005 to $800.9 million in 2006, including increased royalties on sales reported by Lilly.

“The increase in total revenue reflects the impact of market share gains, market growth and price increases,” Lilly reports.

The company adds that it saw a $96.8 million reduction in general, administrative and selling costs.

Last December, Icos announced that it had altered its planned merger agreement with Lilly, with Lilly increasing its offer for the outstanding stock of the company to $34 per share.

A vote is to be held on the merger on January 25th 2007, with the closing of the acquisition dependent on a positive vote from the chairs of Icos and other standard conditions being fulfilled.

Also in December, Lilly forecast that the inclusion of revenues from Cialis in its top line would increase sales growth in 2007.