Press Releases
Isis Reports Financial Results And Highlights For 2013
"2013 was a year of significant growth for Isis with successes in every aspect of our business. KYNAMRO® is the first systemic antisense drug for chronic use to be sold commercially. This was an important event for patients with homozygous FH, for Isis and for antisense technology. Our pipeline of novel antisense drugs also matured substantially. We reported positive data on a number of drugs, including ISIS-APOCIIIRx and ISIS-SMNRx, both of which are scheduled to begin Phase 3 development this year," said
"Our financial performance in 2013 resulted from the successful execution of our business model. We received
"As we carry this momentum into 2014, we have many opportunities to earn significant revenue from our partnerships as our drugs continue to advance. Although we are planning to end 2014 with three drugs in Phase 3 development and ten drugs in Phase 2 development, we are projecting to end 2014 with a pro forma NOL in the low
Financial Results
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
Revenue for the three and twelve months ended
$26.5 million from GlaxoSmithKline because Isis advanced ISIS-TTRRx, ISIS-GSK3Rx and ISIS-GSK4Rx in development;$25 million from Genzyme when theFDA approved the KYNAMRO NDA;$10 million whenAstraZeneca added a second development candidate, ISIS-ARRx, to its collaboration;$17 million fromBiogen Idec because Isis advanced the Phase 2 study of ISIS-SMNRx in infants and for selecting and advancing ISIS-DMPKRx in development; and$3.5 million when Xenon licensed XEN701.
Isis' revenue in 2013 also included
Operating Expenses
As projected, Isis' pro forma operating expenses of
On a GAAP basis, Isis' operating expenses for the three and twelve months ended
Income Tax Benefit
Isis recognized a tax benefit of
Net Loss
Isis reported a net loss of
$18.4 million gain the Company realized in 2012 because of the increase in Regulus' valuation resulting from its initial public offering;$4.8 million loss,$3.6 million of which was non-cash, the Company recorded in 2012 on the early retirement of its 2 ⅝% convertible subordinated notes.
Balance Sheet
As of
2014 Goals
"We expect 2014 to be another year of continued maturation for our pipeline of novel, first-in-class drugs. We plan to begin Phase 3 development for ISIS-APOCIIIRx and ISIS-SMNRx. In addition, we plan to report clinical data from numerous drugs in development in every area of our pipeline, including our severe and rare, and metabolic disease programs. We plan to continue to grow the pipeline by adding new drugs into development. And finally, we expect to explore partnering opportunities that are the best fit for Isis and our programs. Revenue from our existing partnerships allows us to continue to invest in our technology and our pipeline," said Ms. Parshall.
In 2014, Isis plans to achieve the following goals itself and with its partners:
- Together with Genzyme, Isis will continue to support KYNAMRO development, marketing and commercialization activities.
- Advance FOCUS FH with data planned in 2015.
- Pursue marketing approval for KYNAMRO in other countries.
- Support commercial launch activities in
the United States and in other countries for patients with HoFH.
- Mature its pipeline.
- Report clinical data from the Phase 2 studies on ISIS-SMNRx at the upcoming
American Academy of Neurology meeting. - Report data from up to seven drugs in late-stage development, including Phase 2 data on ISIS-FXIRx and ISIS-GCGRRx.
- Initiate up to five Phase 3 studies, including Phase 3 studies on ISIS-APOCIIIRx and ISIS-SMNRx.
- Initiate Phase 2 studies on up to three drugs.
- Report clinical data from the Phase 2 studies on ISIS-SMNRx at the upcoming
- Broaden its pipeline by adding up to five new drugs in both partnered and unpartnered programs.
- Continue to successfully execute its business strategy to generate revenue and cash.
Business Highlights
"The approval of KYNAMRO validated antisense technology and demonstrated that the drug discovery technology platform we developed can produce drugs that are safe and can treat devastating diseases. The rest of the pipeline continues to mature and this progress ensures that we will have many readouts of important clinical data to look forward to this year," concluded Ms. Parshall. "We also continued to successfully execute our partnering strategy, bringing in
Drug Development Highlights
- Isis and Genzyme were successful in bringing KYNAMRO to the market in
the United States ,Mexico ,South Korea andArgentina for patients with homozygous FH. These patients are at high cardiovascular risk and may not be able to reduce their LDL-C sufficiently with currently available lipid-lowering therapies.- Isis received a
$25 million milestone payment from Genzyme related to the marketing approval of KYNAMRO by theFDA . - Genzyme notes trends toward increases in qualified physicians, prescriptions and patients on drug, with optimism that these trends will continue in 2014. Genzyme is supporting the commercial success of KYNAMRO by:
- Qualifying hundreds of treating physicians under the KYNAMRO REMS program to prescribe KYNAMRO,
- Completing a Phase 1 KYNAMRO study in
Japan to support ongoing discussions withJapan regulatory authorities regarding the next steps in development, - Expanding KYNAMRO commercial markets by obtaining marketing approval for KYNAMRO in
the United States ,Mexico ,Argentina andSouth Korea and pursuing regulatory approvals in other countries. Genzyme has stated that it has the infrastructure in place to successfully bring KYNAMRO to patients in these new markets.
- Isis received a
- Isis reported five sets of positive Phase 2 data demonstrating that ISIS-APOCIIIRx can effectively lower triglyceride levels in patients with high to extremely high triglyceride levels and can work as effectively as a single agent or in combination with fibrates. In addition, Isis reported that treated patients with type 2 diabetes experienced improvements in glucose control with trends toward enhanced insulin sensitivity.
- Isis published data in the journal
Circulation Research demonstrating that antisense inhibition of ApoC-III produced significant reductions of ApoC-III and triglycerides in humans and other animal species. - Isis received European Orphan Drug Designation for ISIS-APOCIIIRx for the treatment of patients with familial chylomicronemia syndrome.
- Isis published data in the journal
- Isis reported positive clinical data in children and infants with SMA demonstrating that ISIS-SMNRx is well tolerated with increases in muscle function scores observed in the type 2/3 children.
- Isis presented interim results from both multiple-dose Phase 2 studies in infants and children with SMA demonstrating that ISIS-SMNRx continues to be well tolerated at all doses. In the infant study, all four infants from the 6 mg cohort have been in the study for over six months and all have received three doses of ISIS-SMNRx, and one infant has received a fourth dose of ISIS-SMNRx. In the childhood onset study, Isis reported dose- and time-dependent increases in muscle function scores in children treated with multiple-doses of ISIS-SMNRx. In children treated with 9 mg of ISIS-SMNRx, Isis reported an average increase in muscle function score of 3.7 points.
- Isis reported results from an assay that measures SMN protein levels in the cerebral spinal fluid. The Company observed dose-dependent increases in SMN protein levels in children treated with ISIS-SMNRx from both the single- and multiple-dose studies.
- Dr.
Kathy Swoboda presented follow up data from a single-dose open-label Phase 1 study of ISIS-SMNRx in children with SMA at theInternational Congress of theWorld Muscle Society . In this study, data suggest that children from the two highest doses continued to show increases in muscle function scores up to 14 months after a single injection of ISIS-SMNRx. - Dr.
Claudia Chiriboga reported Phase 1 data on ISIS-SMNRx at theAmerican Academy of Neurology . In this open-label study conducted in a small population, ISIS-SMNRx was well tolerated in children with SMA and increases in muscle function scores were observed in a number of these children.
- Isis received a positive opinion on European Orphan Drug Designation in the EU for ISIS-TTRRx for the treatment of patients with TTR amyloidosis.
- Isis and its partners reported positive data from six drugs, including multiple results from Phase 2 studies of ISIS-SMNRx and ISIS-APOCIIIRx, and Isis added five drugs to its pipeline.
- Isis and its partners initiated clinical studies on ten drugs.
Corporate Highlights
- Isis formed a broad strategic alliance with
Biogen Idec to discover and develop antisense drugs to treat neurological disorders, which combinesBiogen Idec's expertise in neurology with Isis' leadership in antisense technology.- Isis received a
$100 million upfront payment fromBiogen Idec . - Isis is eligible to receive substantial milestone payments, license fees and royalty payments for all treatments developed through this collaboration.
- Isis received a
- Isis formed a new alliance with
Roche to discover and develop antisense drugs to treat Huntington's disease.- Isis received a
$30 million upfront payment and is eligible to receive up to$362 million in a license fee and milestone payments. - In addition, Isis is eligible to receive up to
$136.5 million in milestone payments for each additional drug successfully developed plus up to$50 million in commercial milestones if a drug usingRoche's proprietary brain shuttle technology is successfully commercialized. - Isis is also eligible to receive tiered royalties on sales of drugs arising from the alliance.
- Isis received a
- Isis received
$6 million fromAstraZeneca related to the continuation of the research collaboration between it andAstraZeneca to discover and develop novel antisense drugs to treat cancer. - In 2014 to date, Isis has earned more than
$16 million in payments from its partners as the Company's and its partners' drugs in development continue to mature. - Isis successfully completed a public offering of common stock raising
$173.3 million in net proceeds. Isis is using the proceeds from this offering to support the Phase 3 development of ISIS-APOCIIIRx, retain other drugs longer in development and advance the rest of its pipeline. - Isis added Mr.
Breaux Castleman andJoseph Loscalzo , M.D., Ph.D. to its Board of Directors. - Isis' founder, CEO and chairman of the board of directors,
Stanley T. Crooke , Ph.D., M.D., was awarded the 2013 Director of the Year Award for Companies in Transition by theCorporate Directors Forum and the 2013 Distinguished Scientist Award by theSan Diego section of theAmerican Chemical Society .
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ABOUT
Isis is exploiting its leadership position in antisense technology to discover and develop novel drugs for its product pipeline and for its partners. Isis' broad pipeline consists of 31 drugs to treat a wide variety of diseases with an emphasis on cardiovascular, metabolic, severe and rare diseases, including neurological disorders, and cancer. Isis' partner, Genzyme, is commercializing Isis' lead product, KYNAMRO, in
FORWARD-LOOKING STATEMENT
This press release includes forward-looking statements regarding
In this press release, unless the context requires otherwise, "Isis," "Company," "we," "our," and "us" refers to
Isis Pharmaceuticals® is a registered trademark of
ISIS PHARMACEUTICALS, INC. SELECTED FINANCIAL INFORMATION Condensed Consolidated Statements of Operations(In Thousands, Except Per Share Data) |
||||||||
Three months ended, |
Years ended, |
|||||||
December 31, |
December 31, |
|||||||
2013 |
2012 |
2013 |
2012 |
|||||
Revenue: |
(unaudited) |
|||||||
Research and development revenue under collaborative agreements |
$41,275 |
$17,890 |
$144,194 |
$96,415 |
||||
Licensing and royalty revenue |
973 |
1,983 |
3,091 |
5,634 |
||||
Total revenue |
$42,248 |
19,873 |
147,285 |
102,049 |
||||
Expenses: |
||||||||
Research, development and patent expenses |
57,430 |
42,758 |
184,033 |
158,458 |
||||
General and administrative |
4,676 |
3,234 |
14,918 |
12,515 |
||||
Total operating expenses |
62,106 |
45,992 |
198,951 |
170,973 |
||||
Loss from operations |
(19,858) |
(26,119) |
(51,666) |
(68,924) |
||||
Other income (expense): |
||||||||
Equity in net loss of Regulus Therapeutics Inc. |
- |
(267) |
- |
(1,406) |
||||
Investment income |
686 |
359 |
2,085 |
1,844 |
||||
Interest expense |
(4,885) |
(4,817) |
(19,355) |
(21,152) |
||||
Gain on investments, net |
305 |
1,446 |
2,378 |
1,465 |
||||
Gain on investment in Regulus Therapeutics, Inc. |
- |
18,356 |
- |
18,356 |
||||
Loss on early retirement of debt |
- |
- |
- |
(4,770) |
||||
Loss before income tax benefit (expense) |
(23,752) |
(11,042) |
(66,558) |
(74,587) |
||||
Income tax benefit (expense) |
(524) |
8,405 |
5,914 |
9,109 |
||||
Net loss |
$(24,276) |
$(2,637) |
$(60,644) |
$(65,478) |
||||
Basic and diluted net loss per share |
$(0.21) |
$(0.03) |
$(0.55) |
$(0.65) |
||||
Shares used in computing basic and diluted net loss per share |
116,122 |
101,246 |
110,502 |
100,576 |
Isis Pharmaceuticals, Inc. Reconciliation of GAAP to Pro Forma Basis: Condensed Consolidated Operating Expenses and Loss From Operations (In Thousands) |
|||||||||
Three months ended, December 31, |
Years ended, December 31, |
||||||||
2013 |
2012 |
2013 |
2012 |
||||||
(unaudited) |
(unaudited) |
||||||||
As reported operating expenses according to GAAP |
$62,106 |
$45,992 |
$198,951 |
$170,973 |
|||||
Excluding compensation expense related to equity awards |
(3,101) |
(1,811) |
(11,418) |
(8,571) |
|||||
Pro forma operating expenses |
$59,005 |
$44,181 |
$187,533 |
$162,402 |
|||||
As reported loss from operations according to GAAP |
$(19,858) |
$(26,119) |
$(51,666) |
$(68,924) |
|||||
Excluding compensation expense related to equity awards |
(3,101) |
(1,811) |
(11,418) |
(8,571) |
|||||
Pro forma loss from operations |
$(16,757) |
$(24,308) |
$(40,248) |
$(60,353) |
Reconciliation of GAAP to Pro Forma Basis
As illustrated in the Selected Financial Information in this press release, pro forma operating expenses and pro forma loss from operations were adjusted from GAAP to exclude compensation expense related to equity awards, which are non-cash. Isis 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. Isis 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 Isis' pro forma results is consistent with how Isis' management internally evaluates the performance of its operations.
Isis Pharmaceuticals, Inc. Condensed Consolidated Balance Sheets (In Thousands) |
||||
December 31, |
December 31, |
|||
2013 |
2012 |
|||
Assets: |
||||
Cash, cash equivalents and short-term investments |
$656,761 |
$374,446 |
||
Investment in Regulus Therapeutics Inc. |
52,096 |
33,622 |
||
Other current assets |
26,653 |
15,370 |
||
Property, plant and equipment, net |
86,198 |
91,084 |
||
Other assets |
25,448 |
31,164 |
||
Total assets |
$847,156 |
$545,686 |
||
Liabilities and stockholders' equity: |
||||
Other current liabilities |
$49,677 |
$38,397 |
||
Current portion of deferred contract revenue |
48,135 |
35,925 |
||
2 3/4% convertible senior notes |
150,334 |
143,990 |
||
Long-term obligations, less current portion |
77,830 |
77,952 |
||
Long-term deferred contract revenue |
142,790 |
66,656 |
||
Stockholders' equity |
378,390 |
182,766 |
||
Total liabilities and stockholders' equity |
$847,156 |
$545,686 |
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SOURCE
D. Wade Walke, Ph.D., Vice President, Corporate Communications and Investor Relations, 760-603-2741; or Amy Blackley, Ph.D., Associate Director, Corporate Communications, 760-603-2772