|
Cialis doesn't boost Icos stock
January 6, 2004
BOTHELL -- Some investors expected to see the
price of ICOS Corp.'s stock increase once the
company's erectile
dysfunction drug received federal approval
in November.
Instead, the biotechnology firm's share price
has dropped 12 percent since Cialis' approval,
including a 6 percent drop on Monday alone.
Company officials have said there's no particular
news that should cause the stock to drop.
In the months before Cialis
won approval from the U.S. Food and Drug Administration,
ICOS' stock increased in anticipation. That
helped the stock price rise more than 75 percent
during 2003.
Paul Latta, an analyst with McAdams Wright
Ragen Inc. in Seattle, said several factors
are responsible for the recent drop. He attributed
Monday's relatively large fall for ICOS' stock
price, from $40.88 to $38.35 a share, to profit-taking
as the new tax year began.
"My theory is ... a lot of people wanted
to take some gains, but if they did it before
today, they would have had to take those gains
in the prior tax year, when many people already
had a lot of gains," Latta said.
Add to that a downbeat conference call by Eli
Lilly & Co., the pharmaceutical giant who's
partnered with ICOS on Cialis. In that call,
Lilly executives said the company's earnings
in 2004 won't meet Wall Street's prior expectations,
and that it could be 2006 before its joint venture
with ICOS becomes profitable.
"That ought not to be a reason for selling
the stock, because that ought not to be new
news to investors," Latta said. Still,
it may have had an effect.
He said a preliminary number of prescriptions
written for Cialis last week also showed a decline
from the previous week's totals. While the holiday-shortened
week would explain that, it was cited as a possible
drag on the stock.
He added that some investors also are nervous
that ICOS and Lilly haven't launched their expensive
blitz of TV commercials and other advertisements
for Cialis, even as the drug's rivals, Viagra
and Levitra, have been advertising heavily.
ICOS spokeswoman Lacy Fitzpatrick said last
week that ads should begin this quarter.
ICOS is the largest publicly traded company
with headquarters in Snohomish County, with
a market capitalization of $2.4 billion as of
Monday.
source:-http://heraldnet.com
More Information:
Canadian
Pharmacies | Canada Drugs - Canadian Pharmacies
- save up to 70% on prescription and medications
drugs from our online canada pharmacy!
Online
Canadian Pharmacy - CanadaDrugsOnline.com
is the leading industry of online pharmacy It
deals with perception drugs by mail and any
other way.
MedSpecial.com
- Discount prescriptions. Viagra, Phentermine,
Cialis, Levitra and lots more. Free overnight
delivery.
|
