Lilly Icos' Cialis sales rise to record

Sales of Cialis, the world's No. 2 impotence drug, climbed to a record $269.2 million in the fourth quarter, a 28 percent increase from a year earlier.

The drug had $971 million in worldwide sales in 2006, up from $746.6 million in 2005, according to a statement from drugmakers Eli Lilly and Bothell-based Icos, who co-market the drug. Partly because spending on marketing declined, the joint venture that manages the drug reported a full-year profit of $320.3 million in 2006, up from $37.8 million a year earlier.

Sales of the drug, which costs about $12 per pill, were consistent with the most recent Icos forecasts, which were released publicly on Dec. 14. Cialis has about 27 percent market share in the U.S., trailing only Pfizer's Viagra among impotence drugs, according to market research firm IMS Health.

Eli Lilly hopes to take full control over Cialis in the coming weeks and eliminate the need to split profits with Icos. The drugmaker has offered $34 a share, or $2.28 billion, to acquire biotech Icos. Icos shareholders are scheduled to vote on the transaction on Jan. 25.

With sales of Cialis rising and its potential additional use to treat enlarged prostate and pulmonary arterial hypertension, one large shareholder has argued Lilly's offer is too low. HealthCor Management, a hedge fund that holds about 5 percent of Icos shares, has said it opposes the sale because it believes the company is worth at least $40 a share.

Institutional Shareholder Services, which advises shareholders how to vote, recommended last week that Icos shareholders reject Lilly's offer.