S&P: Eli Lilly unchanged

Standard & Poor's said that Eli Lilly & Co.'s (AA/stable/A-1+) announcement that it has agreed to purchase ICOS Corp. (unrated) for $2.1 billion will not affect the current ratings and outlook on the company.

The agency said that the acquisition enables Lilly to gain full control of the erectile dysfunction drug Cialis, which is currently marketed by a joint venture between Lilly and ICOS.

Cialis was launched in 2003 and has quickly become a key product in Lilly's lineup, generating $456 million in sales in the first half of 2006, S&P noted, adding that Lilly can easily fund the acquisition without significantly weakening its credit protection measures.

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