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`WORLDWIDE BIOTECH
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`November, 1998
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`LILLY/ICOS JOINT VENTURE'S PDE5 TO TREAT SEXUAL DYSFUNC-
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`SECTION: No. 11, Vol. 10
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`LENGTH: 590 words
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`Eli Lilly and Company (NYSE:LLY) and ICOS Corporation (NASDAQ:ICOS) have entered into an agreement to form
`a 50/50 owned joint venture to jointly develop and globally commercialize phosphodiesterase type 5 inhibitors (PDE5)
`as oral therapeutic agents for the treatment of both male and female sexual dysfunction.
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`The lead compound in the joint venture, IC351, is currently being evaluated in Phase 2 clinical trials as an oral treat-
`ment for erectile dysfunction. A recently completed European Phase 2 clinical trial designed to assess safety and effi-
`cacy in male erectile dysfunction (erectile response), showed significant improvement relative to placebo-treated pa-
`tients. Phase 1 studies have demonstrated that IC351 is safe and well tolerated.
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`Erectile dysfunction, in some form, affects as many as 30 million men globally. Many older therapies are either incon-
`venient to administer or may lead to troublesome side effects. In addition, female sexual dysfunction represents a large
`unmet medical need where there are very few treatments.
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`Under the terms of the agreement, ICOS and Lilly will establish a 50/50 owned joint venture. ICOS will receive a $75
`million up-front payment and success milestone payments based on the progression of IC351 through development.
`ICOS and Lilly will both capitalize the joint venture through a cash infusion by Lilly over a three-year period and the
`contribution by ICOS of intellectual property associated with IC351 and its research platform. Subsequently, both par-
`ties will equally provide for the future capital requirements of the company. The joint venture will market products re-
`sulting from this collaborative effort in North America and Europe. For countries outside North America and Europe,
`products will be licensed exclusively to Lilly for commercialization with a royalty paid to the joint venture.
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`"The combined strength of both organizations allows us to enhance our commercialization efforts and accelerate the
`pace of this program," commented ICOS chairman and CEO, George Rathmann. "Our joint venture with Lilly repre-
`sents ICOS' largest collaborative effort to date. We believe Lilly possesses a strong collection of capabilities that will
`help drive the collaboration's success."
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`"The creation of this joint venture will give us an opportunity to work with an ICOS research and management team that
`is well respected and very talented," said August M. Watanabe, M.D., Lilly executive vice president, science and tech-
`nology. "Our partnership with ICOS represents an aggressive step for Lilly as we continue to evaluate leading and in-
`novative technologies that can supplement our own research and development programs."
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`In addition, Lilly announced that the combined impact of the up-front payment to ICOS, plus certain other payments
`made to the joint venture, will be reflected as a one-time after-tax charge of approximately seven cents per share to
`earnings in the third quarter.
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`ICOS is discovering and developing new pharmaceuticals by seeking points of intervention in disease processes that
`may lead to more specific and efficacious drugs. The company's research and drug development programs involve both
`acute and chronic conditions.
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`Lilly is a global, research-based pharmaceutical corporation headquartered in Indianapolis, Indiana that is dedicated to
`creating and delivering innovative pharmaceutical-based health care solutions that enable people to live longer, healthy
`and more active lives.
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`INTELGENX 1020, pg. 1
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`For more information, call 317/276-5795.
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`LOAD-DATE: October 18, 1998
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`LANGUAGE: ENGLISH
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`Copyright 1998 Worldwide Videotex
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`INTELGENX 1020, pg. 2