By Brady Huggett

ICOS Corp. is offering 4.5 million shares from a shelf registration in a public offering as it waits on the FDA¿s response to its new drug application for Cialis.

ICOS, of Bothell, Wash., granted underwriters the option to purchase 675,000 additional shares to cover overallotments. Credit Suisse First Boston Corp., of New York, and Merrill Lynch, Pierce, Fenner & Smith Inc., also of New York, are lead managers for the offering. SG Cowen Securities Corp., of New York; Banc of America Securities LLC, of New York; and Robertson Stephens Inc., of San Francisco, are co-managers.

Based on Thursday¿s closing price of $54.95, the offering would raise about $247 million. ICOS¿ stock (NASDAQ:ICOS) moved up 86 cents Friday to close at $55.81.

ICOS officials would not comment on the public offering, citing SEC-imposed quiet-period rules.

ICOS filed its shelf registration worth up to $300 million in late June, saying the funds, when raised, would be used for research and development, commercialization of product candidates and general corporate uses. (See BioWorld Today, June 27, 2001.)

Just days after filing the shelf registration, ICOS and its partner, Eli Lilly and Co., of Indianapolis, filed an NDA with the FDA seeking approval of Cialis for erectile dysfunction. The Phase III trial of the product showed 85 percent of men involved, including patients with diabetes, achieved improved erections. ICOS and Eli Lilly formed the 50-50 joint venture in 1998 to develop a treatment for sexual dysfunction. (See BioWorld Today, June 29, 2001.)

Among other products at ICOS are Pafase, which is in Phase III trials for severe sepsis and partnered with the Japanese company Suntory Ltd., and sitaxsentan, which is in a Phase II/III trial for pulmonary hypertension and partnered with Texas Biotechnology Corp., of Houston.

As of Sept. 30, ICOS had about $195 million in cash, cash equivalents, investment securities and interest receivable. It posted a net loss for the third quarter of about $24.4 million, or 45 cents per share, and generated about $18.9 in total revenue over the period. Its weighted average number of common shares outstanding on a diluted basis was about 53.7 million.