Press Releases
Ionis provides fourth quarter and full year 2019 financial results
"2019 was an exceptional year. We achieved our goals across the business, including advancing four medicines into pivotal studies and growing our Ionis-owned pipeline. We also made significant progress across our broad pipeline, including in our neurological and cardiometabolic disease franchises, and further advanced our antisense technology through investments in new, complementary technologies. Together these achievements position us to deliver on our goal of ten or more new drug applications through 2025," said
2019 Financial Results and Highlights
- Nearly doubled 2019 revenues, driven by SPINRAZA's continued blockbuster performance and increasing R&D revenue
- Commercial revenue from SPINRAZA® (nusinersen) royalties increased by more than 20 percent to $293 million compared to 2018
- Product sales from TEGSEDI® (inotersen) and WAYLIVRA® (volanesorsen) were
$42 million - R&D revenue more than doubled to
$771 million compared to 2018 - Invested in commercializing TEGSEDI and WAYLIVRA and advanced the pipeline while remaining profitable
- Operating income and net income significantly improved to
$366 million and$294 million , respectively, compared to 2018, on a GAAP basis - Non-GAAP operating income and net income significantly improved to
$513 million and$402 million , respectively, compared to 2018 - Increased cash position to
$2.5 billion ; further strengthened balance sheet by refinancing a significant portion of the Company's 1 percent convertible debt due in 2021 - Extended maturity to 2024, achieved 0.125 percent interest rate, and significantly increased conversion price
- Returned value to shareholders by repurchasing 2 million shares of Ionis common stock in late 2019 and early 2020 for
$125 million
2020 Financial Guidance
The Company's full year 2020 financial guidance consists of the following components (on a non-GAAP basis):
Guidance |
|
Revenue |
> |
Operating Expenses |
|
Meaningfully Profitable |
"2019 was also an exceptional year financially, with growth in both commercial revenues and R&D revenues. We delivered over
All non-GAAP amounts referred to in this press release exclude non-cash compensation expense related to equity awards. Please refer to the reconciliation of non-GAAP and GAAP measures, which is provided later in this release.
Commercial Medicines
- SPINRAZA: a global foundation-of-care for the treatment of spinal muscular atrophy (SMA) patients of all ages
- Worldwide sales increased to more than
$2 billion in 2019, an approximately 22 percent increase compared to 2018 - Worldwide patients on treatment increased to over 10,000, including patients in commercial, early access and clinical trial settings
- In the fourth quarter, patients on treatment outside the
U.S. increased by approximately 10 percent, driven by growth from existing and newly launched markets - In the fourth quarter,
U.S. patient growth was driven by pediatric and adult SMA patients, with adults accounting for more than 50 percent of new patient starts - Biogen initiated the Phase 2/3 DEVOTE study evaluating the safety and potential to achieve increased efficacy with a higher dose of SPINRAZA in SMA patients of all ages, including adults
- TEGSEDI: launched in multiple markets for the treatment of hereditary transthyretin amyloidosis (hATTR) with polyneuropathy in adult patients
- Revenue increased for each quarter during 2019, driven by growth in patients on treatment
- Total units shipped to
U.S. patients increased by 17 percent in the fourth quarter - Commercially available in more than ten countries
- Launching in
Brazil through PTC Therapeutics - Launching in additional EU countries this year
- WAYLIVRA: launched in the EU as the only approved treatment for adults with genetically confirmed familial chylomicronemia syndrome (FCS) at high risk for pancreatitis
- Commercial patients on therapy in
Germany - Patient enrollment underway in
France through the Temporary Authorization for Use (ATU) - Launching in additional EU countries this year
- Potential approval in
Brazil by the end of this year through PTC Therapeutics - Goal to refile for marketing authorization in the
U.S. this year
Neurological Disease Franchise
- Ionis-owned programs:
- Initiated the Phase 3 NEURO-TTRansform study of AKCEA-TTR-LRx for the treatment of hATTR polyneuropathy
- Advanced two new Ionis-owned neurological disease medicines into development:
- ION716 for the treatment of Prion disease
- ION283 for the treatment of Lafora disease
- ION373, for the treatment of Alexander disease, granted orphan drug designation by the
European Medicines Agency (EMA) - Partnered programs:
- More than
$55 million for licensing and advancing IONIS-MAPTRx for the treatment of Alzheimer's disease $10 million for advancing the Phase 1/2 study of IONIS-C9Rx for the treatment of C9ORF72-related ALS$10 million for advancing ION581 into development for the treatment of Angelman syndrome$30 million for advancing four new neurological disease programs toward development
Cardiometabolic Disease Franchise
- Ionis-owned programs:
- Initiated the Phase 3 CARDIO-TTRansform cardiovascular outcomes study of AKCEA-TTR-LRx in patients with hereditary and wild-type ATTR cardiomyopathy
- AKCEA-APOCIII-LRx achieved its primary efficacy endpoint and demonstrated a favorable safety and tolerability profile in a Phase 2 proof-of-concept study
- Partnered programs:
- Novartis began enrolling patients in the Phase 3 HORIZON cardiovascular outcomes study of AKCEA-APO(a)-LRx in patients with established cardiovascular disease
- AKCEA-ANGPTL3-LRx achieved its primary efficacy endpoint and demonstrated a favorable safety and tolerability profile in a Phase 2 proof-of-concept study
- Received
$250 million from Pfizer upon closing of the license agreement for the development and commercialization of AKCEA-ANGPTL3-LRx for the treatment of patients with certain cardiovascular and metabolic diseases
Key 2020 Catalysts
- Initiate a Phase 3 study of AKCEA-APOCIII-LRx in patients with
FCS - Report clinical proof-of-concept results from six or more studies, including IONIS-GHR-LRx, IONIS-PKK-LRx, IONIS-ENaC-2.5Rx and an orally delivered medicine
- Reported positive topline results for AKCEA-APOCIII-LRx and AKCEA-ANGPTL3-LRx in
January 2020 - Initiate ten or more Phase 2 studies
- Advance five or more new medicines into development
Revenue
Ionis' revenue increased by more than 85 percent in 2019 compared to the same period in 2018 and was comprised of the following (amounts in millions):
Three months ended, |
Year ended |
|||||||
|
|
|||||||
2019 |
2018 |
2019 |
2018 |
|||||
Revenue: |
||||||||
Commercial revenue: |
||||||||
SPINRAZA royalties |
|
|
|
|
||||
Product sales, net |
13 |
2 |
42 |
2 |
||||
Licensing and royalty revenue |
6 |
1 |
17 |
15 |
||||
Total commercial revenue |
100 |
73 |
352 |
255 |
||||
R&D Revenue: |
||||||||
Amortization from upfront payments |
46 |
33 |
146 |
125 |
||||
Milestone payments |
51 |
38 |
115 |
83 |
||||
License fees |
292 |
38 |
490 |
102 |
||||
Other services |
5 |
10 |
20 |
35 |
||||
Total R&D revenue |
394 |
119 |
771 |
345 |
||||
Total revenue |
|
|
|
|
Operating Expenses
Operating expenses increased for the year ended
Loss on Early Retirement of Debt
In December 2019, Ionis refinanced a significant portion of its 1% convertible senior notes due 2021 (1% Notes) for new 0.125% convertible senior notes due 2024 (0.125% Notes). Ionis significantly reduced its interest rate, extended the maturity to December 2024 and increased the conversion price. As a result of the early refinance of the 1% Notes, Ionis recognized a $22 million non-cash loss in 2019.
Income Tax Expense (Benefit)
Ionis' income tax expense in 2019 was primarily because the Company generated
Net (Income) Loss Attributable to Noncontrolling Interest in Akcea
At
Net Income Attributable to Ionis Common Stockholders
Ionis' net income attributable to Ionis' common stockholders and basic and diluted earnings per share increased in 2019 compared to 2018 primarily due to the significant increase in Ionis' revenue. Somewhat offsetting this increase was income tax expense the Company recognized in 2019 compared to a one-time non-cash tax benefit recognized in 2018 related to the Company's deferred income tax assets.
Balance Sheet
Ionis strengthened its balance sheet, ending 2019 with cash, cash equivalents and short-term investments of $2.5 billion, compared to
Webcast
Today, at
About
As the leader in RNA-targeted drug discovery and development, Ionis has created an efficient, broadly applicable, drug discovery platform called antisense technology that can treat diseases where no other therapeutic approaches have proven effective. Our drug discovery platform has served as a springboard for actionable promise and realized hope for patients with unmet needs. We created the first and only approved treatment for children and adults with spinal muscular atrophy as well as the world's first RNA-targeted therapeutic approved for the treatment of polyneuropathy in adults with hereditary transthyretin amyloidosis. Our sights are set on all the patients we have yet to reach with a pipeline of more than 40 novel medicines designed to treat a broad range of diseases including cardiovascular diseases, neurological diseases, infectious diseases, pulmonary diseases and cancer.
To learn more about Ionis visit www.ionispharma.com or follow us on twitter @ionispharma.
*Spinraza is marketed by Biogen.
Ionis' Forward-looking Statement
This press release includes forward-looking statements regarding Ionis' business, financial guidance and the therapeutic and commercial potential of SPINRAZA (nusinersen), TEGSEDI (inotersen) and WAYLIVRA (volanesorsen) and Ionis' technologies and products in development, including the business of
In this press release, unless the context requires otherwise, "Ionis," "Company," "we," "our," and "us" refers to
SELECTED FINANCIAL INFORMATION Condensed Consolidated Statements of Operations (In Millions, Except Per Share Data) |
||||||||
Three months |
Year ended |
|||||||
|
|
|||||||
2019 |
2018 |
2019 |
2018 |
|||||
(unaudited) |
||||||||
Revenue: |
||||||||
Commercial revenue: |
||||||||
SPINRAZA royalties |
|
|
|
|
||||
Product sales, net |
13 |
2 |
42 |
2 |
||||
Licensing and royalty revenue |
6 |
1 |
17 |
15 |
||||
Total commercial revenue |
100 |
73 |
352 |
255 |
||||
Research and development revenue under collaborative agreements |
394 |
119 |
771 |
345 |
||||
Total revenue |
494 |
192 |
1,123 |
600 |
||||
Expenses: |
||||||||
Cost of products sold |
1 |
1 |
4 |
2 |
||||
Research, development and patent |
149 |
113 |
466 |
414 |
||||
Selling, general and administrative |
83 |
67 |
287 |
245 |
||||
Total operating expenses |
233 |
181 |
757 |
661 |
||||
Income (loss) from operations |
261 |
11 |
366 |
(61) |
||||
Other income (expense): |
||||||||
Investment income |
13 |
11 |
52 |
30 |
||||
Interest expense |
(14) |
(11) |
(49) |
(45) |
||||
Loss on early retirement of debt |
(22) |
- |
(22) |
- |
||||
Income (loss) before income tax (expense) benefit |
238 |
11 |
347 |
(76) |
||||
Income tax (expense) benefit |
(34) |
292 |
(44) |
291 |
||||
Net income |
|
|
|
|
||||
Net (income) loss attributable to noncontrolling interest in |
(20) |
17 |
(9) |
59 |
||||
Net income attributable to |
|
|
|
|
||||
Basic net income per share |
|
|
|
|
||||
Diluted net income per share |
|
|
|
|
||||
Shares used in computing basic net income per share |
141 |
138 |
140 |
132 |
||||
Shares used in computing diluted net income per share |
153 |
150 |
143 |
134 |
(In Millions) |
||||||||||
Year Ended, |
||||||||||
|
||||||||||
Ionis |
Akcea |
Eliminations |
Ionis Consolidated |
|||||||
Revenue: |
||||||||||
Commercial revenue: |
||||||||||
SPINRAZA royalties |
|
$- |
$- |
|
||||||
Product sales, net |
- |
42 |
- |
42 |
||||||
Licensing and royalty revenue |
7 |
10 |
- |
17 |
||||||
Total commercial revenue |
300 |
52 |
- |
352 |
||||||
Research and development revenue under collaborative agreements |
334 |
437 |
- |
771 |
||||||
Intercompany revenue |
225 |
- |
(225) |
- |
||||||
Total revenue |
859 |
489 |
(225) |
1,123 |
||||||
Expenses: |
||||||||||
Cost of products sold |
2 |
11 |
(9) |
4 |
||||||
Research, development and patent expenses |
379 |
293 |
(206) |
466 |
||||||
Selling, general and administrative |
143 |
146 |
(2) |
287 |
||||||
Profit/ loss share for TEGSEDI commercialization activities |
37 |
(37) |
- |
- |
||||||
Total operating expenses |
561 |
413 |
(217) |
757 |
||||||
Income (loss) from operations |
298 |
76 |
(8) |
366 |
||||||
Other income (expense): |
||||||||||
Investment income |
47 |
5 |
- |
52 |
||||||
Interest expense |
(49) |
- |
- |
(49) |
||||||
Loss on early retirement of debt |
(22) |
- |
- |
(22) |
||||||
Income before income tax expense |
274 |
81 |
(8) |
347 |
||||||
Income tax expense |
(41) |
(3) |
- |
(44) |
||||||
Net income (loss) |
|
|
( |
|
||||||
Net income attributable to noncontrolling interest in |
- |
- |
(9) |
(9) |
||||||
Net income attributable to |
|
|
|
|
Reconciliation of GAAP to Non-GAAP Basis: Condensed Consolidated Operating Expenses, Income (Loss) From Operations, and Net Income (In Millions) |
|||||||||
Three months ended, |
Year ended, |
||||||||
2019 |
2018 |
2019 |
2018 |
||||||
(unaudited) |
|||||||||
As reported research, development and patent expenses according to GAAP |
|
|
|
|
|||||
Excluding compensation expense related to equity awards |
(23) |
(18) |
(95) |
(77) |
|||||
Non-GAAP research, development and patent expenses |
|
|
|
|
|||||
As reported selling, general and administrative expenses according to GAAP |
|
|
|
|
|||||
Excluding compensation expense related to equity awards |
(12) |
(15) |
(51) |
(55) |
|||||
Non-GAAP selling, general and administrative expenses |
|
|
|
|
|||||
As reported operating expenses according to GAAP |
|
|
|
|
|||||
Excluding compensation expense related to equity awards |
(35) |
(34) |
(147) |
(131) |
|||||
Non-GAAP operating expenses |
|
|
|
|
|||||
As reported income (loss) from operations according to GAAP |
|
|
|
|
|||||
Excluding compensation expense related to equity awards |
(35) |
(34) |
(147) |
(131) |
|||||
Non-GAAP income from operations |
|
|
|
|
|||||
As reported net income attributable to |
|
|
|
|
|||||
Excluding compensation expense related to equity awards attributable to |
(33) |
(31) |
(139) |
(120) |
|||||
Income tax effect related to compensation expense related to equity awards attributable to |
5 |
21 |
31 |
21 |
|||||
Non-GAAP net income attributable to |
|
|
|
|
Reconciliation of GAAP to Non-GAAP Basis
As illustrated in the Selected Financial Information in this press release, non-GAAP operating expenses, non-GAAP income (loss) from operations, and non-GAAP net income (loss) attributable to
Condensed Consolidated Balance Sheets |
|||||
|
|
||||
2019 |
2018 |
||||
Assets: |
|||||
Cash, cash equivalents and short-term investments |
|
|
|||
Contracts receivable |
63 |
13 |
|||
Other current assets |
158 |
111 |
|||
Property, plant and equipment, net |
154 |
132 |
|||
Other assets |
358 |
328 |
|||
Total assets
|
|
|
|||
Liabilities and stockholders' equity: |
|||||
Other current liabilities |
|
|
|||
Current portion of deferred contract revenue |
118 |
160 |
|||
1% convertible senior notes |
275 |
568 |
|||
0.125% convertible senior notes |
435 |
- |
|||
Long-term obligations, less current portion |
75 |
65 |
|||
Long-term deferred contract revenue |
490 |
567 |
|||
Total Ionis stockholders' equity |
1,471 |
1,049 |
|||
Noncontrolling interest in |
214 |
139 |
|||
Total stockholders' equity |
1,685 |
1,188 |
|||
Total liabilities and stockholders' equity |
|
|
Condensed Consolidating Balance Sheet (In Millions) |
||||||||
|
||||||||
Ionis |
||||||||
Ionis |
Akcea |
Eliminations |
Consolidated |
|||||
Assets: |
||||||||
Cash, cash equivalents and short-term investments |
|
|
$- |
|
||||
Contracts receivable |
53 |
10 |
- |
63 |
||||
Other current assets |
138 |
23 |
(3) |
158 |
||||
Property, plant and equipment, net |
149 |
5 |
- |
154 |
||||
Other assets |
1,105 |
97 |
(844) |
358 |
||||
Total assets |
|
|
( |
|
||||
Liabilities and stockholders' equity: |
||||||||
Other current liabilities |
|
|
|
|
||||
Current portion of deferred contract revenue |
116 |
2 |
- |
118 |
||||
1% convertible senior notes |
275 |
- |
- |
275 |
||||
0.125% convertible senior notes |
435 |
- |
435 |
|||||
Long-term obligations, less current portion |
61 |
14 |
- |
75 |
||||
Long-term deferred contract revenue |
492 |
- |
(2) |
490 |
||||
Total stockholders' equity before noncontrolling interest |
1,984 |
543 |
(1,056) |
1,471 |
||||
Noncontrolling interest in |
- |
- |
214 |
214 |
||||
Total stockholders' equity |
1,984 |
543 |
(842) |
1,685 |
||||
Total liabilities and stockholders' equity |
|
|
( |
|
View original content to download multimedia:http://www.prnewswire.com/news-releases/ionis-provides-fourth-quarter-and-full-year-2019-financial-results-301011366.html
SOURCE
Ionis Pharmaceuticals Investors: D. Wade Walke, Ph.D., Vice President, Investor Relations, 760-603-2741; or Ionis Pharmaceuticals Media Contact: Roslyn Patterson, Vice President, Corporate Communications, 760-603-2681