Eli Lilly CEO Taurel: Icos Deal Is Fair

In a "First on CNBC-TV" Eli Lilly CEO and Chairman Sidney Taurel sat down with Mike Huckman on "Squawk Box" to talk about the company--as the it meets with analysts today and issued new guidance.

The pharmaceutical company says sales growth for 2007 will be in the low end of the 7-9% range--versus 6% for 2006. It also said its 2007 EPS will be $3.25 to $3.35---but that comes with a 10 cent hit from its acquisition of Icos --the partner Lilly had for the male erectile dysfunction drug Cialis.

Huckman asked Taurel about that acquisition--stating that the Institute of Shareholder Services issued a report saying the deal was undervalued. Taurel replied by saying he felt it was a fair deal and that the price of $32 a share was agreed upon by both companies. Icos shares have been trading lately at around $33 a share.

Taurel also said that the failure of Pfizer's experimental anti-cholesterol drug torcetrapib--shows that the industry is risky at times. He said he believes Pfizer will NOT buy Amylin --Lilly's partner in making a diabetes drug.