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Business Description
ICOS Corporation is a biotechnology company bringing therapeutic products to patients. The Company is marketing its first product, Cialis (tadalafil), for the treatment of erectile dysfunction, through Lilly ICOS LLC. (Lilly ICOS), its joint venture with Eli Lilly and Company (Lilly). Cialis is an oral inhibitor of the phosphodiesterase type 5 enzyme (PDE5) and is being manufactured and marketed by Lilly ICOS, which has rights to commercialize Cialis in North America and Europe. Research and Development activities include studying and developing product candidates targeting a variety of serious diseases and medical conditions.

Financial Information
For the nine months ended 9/30/04, revenues increased 18% to $54.2 million. Net loss increased 80% to $164.8 million. Revenues reflect an increase in collaboration revenue from affiliates. Higher loss reflects an increase in equity losses from Lilly ICOS ($114.9 million, up from $58.5 million).