Lilly buying Icos in $2.1B deal

Eli Lilly has struck a deal to buy Icos for $2.1 billion, giving it full control of an ED drug tadalafil that the two companies have marketed jointly. The deal has been approved by Icos' board and is expected to close in the next few months. Lilly is paying $32 a share, an 18 percent premium on yesterday's close. Icos also has a pipeline that includes eight preclinical programs and a late-stage program for tadalafil as a therapy for other conditions, including pulmonary arterial hypertension. The market for tadalafil is expected to break the billion-dollar mark next year.

"Our close collaboration with the many talented people at Icos has produced outstanding results for both companies," said Lily CEO Sidney Taurel. "We now look forward to building on this success and continuing to provide the benefits of [tadalafil] to patients around the world."

- read the report on the buyout from TheStreet.com