Icos gears up for Cialis sales in U.S.

Icos Corp. has yet to win Food and Drug Administration approval for its Cialis erectile-dysfunction drug. But the Bothell biotechnology company, which yesterday reported third-quarter revenue of $12.1 million, is already gearing up for a major sales effort.

Icos, which has secured approval for the Viagra competitor in 45 countries and expects U.S. approval this year, has hired 165 sales representatives to make sales calls on urologists and other physicians.

They can't discuss Cialis with doctors until the drug is approved. But Leonard Blum, vice president of marketing, said the sales representatives are educating themselves about erectile dysfunction and establishing contacts with leading urologists who may prescribe the drug to patients once it is approved.

The hiring spree was completed faster than expected as the company recruited sales representatives from Pfizer, Johnson & Johnson, Merck and other pharmaceutical companies.

The company also indicated in its third-quarter conference call that it will be ready to begin producing Cialis upon U.S. approval.

Cialis, which is being jointly developed and marketed by Icos and Indianapolis-based Eli Lilly and Co., will be produced at a facility in Puerto Rico. Icos declined to comment on whether the FDA had completed its review of the facility.

As a result of the new hires, Icos' sales and marketing expenses increased from $6.5 million in the third quarter of last year to $8.2 million in the most recent quarter. Its net loss for the quarter was $39.3 million, up from $34.5 million in the same period last year. For the first nine months of the year, Icos reported a net loss of $91.3 million.

Worldwide Cialis revenue was reported separately in a filing last month by the joint venture of Lilly Icos. According to that filing, the drug continues to chip away at the market share of Viagra in Germany, France, Italy, Spain and other countries. During the third quarter, worldwide sales of Cialis totaled $50.2 million. For the first nine months of the year, sales of the drug were $109 million.

Icos finished the third quarter with $498 million in cash -- a strong balance sheet that could help the company bring more drugs to market. It currently has two drug candidates -- IC14 and RTX -- in Phase 2 clinical trials. Results from the studies are expected next year.

The stock fell $1.45 in yesterday's trading, to close at $44.40.

In other earnings news, Expeditors International of Washington Inc. reported earnings of 30 cents a share yesterday after the Seattle-based global logistics company posted an 11 percent increase in net revenue and a 4 percent increase in operating income.

Expeditors said third-quarter net revenue grew to $196.8 million, compared with $177.8 million in the year-earlier quarter. Total revenue was $711.5 million, compared with $620.4 million in the third quarter of 2002. Same-store net revenue grew 11 percent.

The company's stock rose 4.8 percent to close yesterday at $39.63.

Epoch Biosciences Inc., which develops genetic analysis technology, yesterday reported revenue of $2 million and a net loss of $332,000 for the third quarter. That compares with revenue of $2.7 million and a net loss of $861,000 for the same period last year. The Bothell company finished the quarter with $4.6 million of cash. The stock fell 11 cents to $2.39.

Redhook Ale Brewery Inc. reported a third-quarter loss of $211,000, or 4 cents a share, down from a loss of $355,000, or 5 cents a share, a year ago. Sales rose 4 percent to $11.1 million. Redhook said increased sales at its brew pubs and improved product prices helped results, but the company is still dealing with increased costs for packaging and raw materials. Redhook stock rose 7 cents to $3.08 in yesterday's trading.

Cost-U-Less Inc. earned $281,000 in net income in the third quarter, up from $207,000 a year ago, the company said in a statement released yesterday.

In July, August and September, sales at Cost-U-Less stores open at least 13 months jumped 9.9 percent. Cost-U-Less shares fell 3 cents to close at $2.70.

More headlines and info from Bothell, Sodo, Woodinville.