Press Releases
Ionis Reports Financial Results and Highlights for First Quarter 2017
"SPINRAZA's launch is off to a strong start with sales in the first quarter of over
"We and Akcea reported positive results from the Phase 3 APPROACH study of volanesorsen in March. With these positive data in hand, we are well along in preparing to file for regulatory approval in the U.S., EU and
"This quarter, we plan to report data from our Phase 3 NEURO-TTR study of IONIS-TTRRx in patients with familial amyloid polyneuropathy. We and our partner, GSK, are preparing to file for marketing approval before year-end. With the SPINRAZA launch gaining momentum, volanesorsen moving toward the market, Phase 3 data for IONIS-TTRRx imminent, and a large and growing pipeline supported by our efficient technology platform, we believe we have the elements in place to achieve sustained, long-term financial growth," concluded Ms. Parshall.
Financial Results
"We continued the momentum from 2016 into the first quarter of this year by achieving operating income and net income on both a GAAP and pro forma basis. These strong financial results were driven by more than $110 million of revenue we earned in the first quarter. Importantly, we added more than
"We are on track to meet our 2017 guidance of being breakeven or profitable at the operating line on a pro forma basis and a year-end cash balance of over
All pro forma amounts referred to in this press release exclude non-cash compensation expense related to equity awards. Please refer to the reconciliation of pro forma and GAAP measures, which is provided later in this release.
Revenue
Ionis' revenue for the three months ended
Commercial Revenue:
-
$5.2 million from SPINRAZA royalties; and -
$3.6 million from other licensing and royalty payments.
R&D Revenue:
-
$65.5 million from Bayer primarily for the license of IONIS-FXI-LRx; -
$5.0 million milestone payment from Biogen for validating an undisclosed neurological disease target; -
$25.3 million from the amortization of upfront fees; and -
$5.7 million primarily from services Ionis performed for its partners.
Ionis' R&D revenue fluctuates based on the nature and timing of payments under agreements with its partners and consists primarily of revenue from the amortization of upfront fees, milestone payments and license fees.
Operating Expenses
Ionis' operating expenses for the three months ended
Net Income
Ionis reported net income of
Balance Sheet
As of
Conference Call
At
ABOUT
Ionis is the leading company in RNA-targeted drug discovery and development focused on developing drugs for patients who have the highest unmet medical needs, such as those patients with severe and rare diseases. Using its proprietary antisense technology, Ionis has created a large pipeline of first-in-class or best-in-class drugs, with over three dozen drugs in development. SPINRAZA™ (nusinersen) is a drug that has been approved in the U.S. for the treatment of spinal muscular atrophy (SMA) in pediatric and adult patients. Biogen is responsible for commercialization of SPINRAZA. Drugs currently in Phase 3 development include volanesorsen, a drug Ionis is developing and plans to commercialize through its wholly owned subsidiary,
FORWARD-LOOKING STATEMENT
This press release includes forward-looking statements regarding
In this release, unless the context requires otherwise, "Ionis," "Company," "we," "our," and "us" refers to
Ionis Pharmaceuticals™ is a trademark of
(Q1 2017 and subsequent activities)
Recent SPINRAZA Accomplishments:
- Biogen reported
$47 million from sales of SPINRAZA in the first quarter. - Biogen received a positive CHMP opinion for SPINRAZA, recommending marketing approval with a broad indication in the EU.
- Ionis and Biogen reported positive data at AAN from the CHERISH and NURTURE studies as well as encore data from the ENDEAR study.
- CHERISH data from an end of study analysis in non-ambulatory patients with later-onset SMA (consistent with Type 2) demonstrated:
- A highly statistically significant and clinically meaningful improvement in motor function scores in SPINRAZA-treated patients compared to untreated patients.
- Attainment of new motor milestones and upper limb motor function consistently in favor of SPINRAZA-treated patients.
- A favorable safety profile with no discontinuations due to adverse events.
- Data from an interim analysis of the NURTURE study in pre-symptomatic infants with genetically diagnosed SMA demonstrated that at the time of the interim analysis:
- All infants were alive without the need for permanent ventilation.
- Most infants achieved new motor milestones on essentially the same timeline as would be expected of a healthy infant.
- No infants discontinued or withdrew from the study due to adverse events, and no new safety concerns were identified.
Recent Corporate and Pipeline Accomplishments:
- Ionis received more than
$290 million in cash from partners in the first quarter of 2017. - In April, Ionis received
$75 million from Bayer to advance both IONIS-FXIRx and its LICA follow on, IONIS-FXI-LRx. - GSK initiated Phase 2 studies of IONIS-HBVRx and the LICA follow on, IONIS-HBV-LRx.
- Ionis initiated a Phase 1 study of IONIS-AGT-LRx, a wholly owned generation 2.0+ LICA drug, in patients with treatment resistant hypertension.
- Ionis published papers in Nature Biotechnology on the mechanism of action for antisense drugs that significantly expand therapeutic opportunities for the technology.
- Ionis published a paper in Nucleic Acid Therapeutics on the analysis of its Integrated Safety Database, which demonstrated no class generic effect of 2'-O-methoxyethyl-modified antisense oligonucleotides on platelet numbers and function.
- Ionis' CEO, Dr.
Stanley Crooke , received theE. B. Hershberg Award from theAmerican Chemical Society .
Recent Akcea Accomplishments:
- Ionis and Akcea reported that volanesorsen achieved its primary endpoint in the Phase 3 APPROACH study, demonstrating robust reductions in triglycerides and reduced incidence of pancreatitis attacks and reduced frequency and severity of abdominal pain.
- Ionis and Akcea initiated a strategic collaboration with
Novartis worth up to more than$1 billion plus royalties for the development and commercialization of AKCEA-APO(a)-LRx and AKCEA-APOCIII-LRx. - Akcea initiated a Phase 2b study of AKCEA-APO(a)-LRx in patients with elevated Lp(a).
- Akcea filed a registration statement with the intention of completing an initial public offering.
- Top-line data from the Phase 3 APPROACH study of volanesorsen were presented at the 2017
European Atherosclerosis Society congress. - Akcea published interim data in Expert Review of Cardiovascular Therapy from the IN-FOCUS survey that was commissioned to quantify the burden of FCS on patients and the healthcare system.
IONIS PHARMACEUTICALS, INC. |
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SELECTED FINANCIAL INFORMATION |
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Condensed Consolidated Statements of Operations |
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(In Thousands, Except Per Share Data) |
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Three months ended, |
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March 31, |
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2017 |
2016 |
|||
Revenue: |
(unaudited) |
|||
Commercial Revenue: |
||||
SPINRAZA royalties |
$5,211 |
$- |
||
Licensing and royalty revenue |
3,547 |
1,660 |
||
Total commercial revenue |
$8,758 |
$1,660 |
||
Research and development revenue under collaborative agreements |
101,546 |
35,214 |
||
Total revenue |
110,304 |
36,874 |
||
Expenses: |
||||
Research, development and patent |
82,638 |
80,964 |
||
Selling, general and administrative |
13,677 |
10,562 |
||
Total operating expenses |
96,315 |
91,526 |
||
Income (loss) from operations |
13,989 |
(54,652) |
||
Other income (expense): |
||||
Investment income |
2,280 |
1,457 |
||
Interest expense |
(11,363) |
(9,490) |
||
Other expense |
(1,438) |
- |
||
Income (loss) before income tax expense |
3,468 |
(62,685) |
||
Income tax expense |
- |
(232) |
||
Net income (loss) |
$3,468 |
$(62,917) |
||
Basic net income (loss) per share |
$0.03 |
$(0.52) |
||
Shares used in computing basic net income (loss) per share |
122,861 |
120,598 |
||
Diluted net income (loss) per share |
$0.03 |
$(0.52) |
||
Shares used in computing diluted net income (loss) per share |
124,972 |
120,598 |
Ionis Pharmaceuticals, Inc. |
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Reconciliation of GAAP to Pro Forma Basis: |
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Condensed Consolidated Operating Expenses, Income (Loss) From Operations, and Net Income (Loss) |
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(In Thousands) |
||||
Three months ended, |
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March 31, |
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2017 |
2016 |
|||
(unaudited) |
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As reported operating expenses according to GAAP |
$96,315 |
$91,526 |
||
Excluding compensation expense related to equity awards |
(20,912) |
(20,103) |
||
Pro forma operating expenses |
$75,403 |
$71,423 |
||
As reported income (loss) from operations according to GAAP |
$13,989 |
$(54,652) |
||
Excluding compensation expense related to equity awards |
(20,912) |
(20,103) |
||
Pro forma income (loss) from operations |
$34,901 |
$(34,549) |
||
As reported net income (loss) according to GAAP |
$3,468 |
$(62,917) |
||
Excluding compensation expense related to equity awards |
(20,912) |
(20,103) |
||
Pro forma net income (loss) |
$24,380 |
$(42,814) |
Reconciliation of GAAP to Pro Forma Basis
As illustrated in the Selected Financial Information in this press release, pro forma operating expenses, pro forma income (loss) from operations, and pro forma net income (loss) were adjusted from GAAP to exclude compensation expense related to equity awards, which are non-cash. Ionis has regularly reported non-GAAP measures for operating results as pro forma results. These measures are provided as supplementary information and are not a substitute for financial measures calculated in accordance with GAAP. Ionis reports these pro forma results to better enable financial statement users to assess and compare its historical performance and project its future operating results and cash flows. Further, the presentation of Ionis' pro forma results is consistent with how Ionis' management internally evaluates the performance of its operations.
Ionis Pharmaceuticals, Inc. |
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Condensed Consolidated Balance Sheets |
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(In Thousands) |
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March 31, |
December 31, |
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2017 |
2016 |
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Assets: |
|||||
Cash, cash equivalents and short-term investments |
$860,281 |
$665,223 |
|||
Contracts receivable |
69,357 |
108,043 |
|||
Other current assets |
32,734 |
22,252 |
|||
Property, plant and equipment, net |
95,439 |
92,845 |
|||
Other assets |
26,185 |
24,104 |
|||
Total assets |
$1,083,996 |
$912,467 |
|||
Liabilities and stockholders' equity: |
|||||
Other current liabilities |
$62,430 |
$82,504 |
|||
Current portion of deferred contract revenue |
108,150 |
51,280 |
|||
1% convertible senior notes |
508,411 |
500,511 |
|||
Long-term obligations, less current portion |
87,440 |
87,409 |
|||
Long-term deferred contract revenue |
115,759 |
91,198 |
|||
Stockholders' equity |
201,806 |
99,565 |
|||
Total liabilities and stockholders' equity |
$1,083,996 |
$912,467 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ionis-reports-financial-results-and-highlights-for-first-quarter-2017-300453752.html
SOURCE
D. Wade Walke, Ph.D., Vice President, Corporate Communications and Investor Relations, 760-603-2741