Full Press Release Details
Ionis reports fourth quarter and full year 2023 financial results
WAINUATM approved with launch underway; on track for EU and Canada approval decisions this year
Positive Phase 3 olezarsen and donidalorsen data, preparing regulatory submissions for FCS and HAE, respectively
Olezarsen granted Breakthrough Therapy designation by the FDA for FCS
Ionis provides full year 2024 financial guidance
CARLSBAD, Calif., February 21, 2024 - Ionis
Pharmaceuticals, Inc. (Nasdaq: IONS) (the "Company"), today reported financial results for the fourth quarter and full year ended December 31, 2023.
"This past year included many remarkable achievements as we continued to advance our vision to bring better futures to people with serious diseases. Ionis achieved two
FDA approvals, delivered three positive Phase 3 data readouts, expanded our rich Phase 3 pipeline to nine medicines and advanced our next wave of wholly owned medicines as well as our technology," said Brett P. Monia, Ph.D., chief executive officer
of Ionis. "In 2024, we anticipate building on our success with important catalysts and continued value creation. The WAINUA U.S. launch is underway for patients with hereditary ATTR polyneuropathy,
and we expect additional approvals in other countries this year. We plan to present positive Phase 3 data for olezarsen in familial chylomicronemia syndrome and donidalorsen in hereditary angioedema, positioning Ionis to independently launch these
two medicines. We also anticipate additional readouts from multiple mid-stage programs that, if positive, would advance into Phase 3 development, further strengthening our ability to deliver a steady cadence of potentially transformational
medicines for years to come."
Fourth Quarter and Full Year 2023 Summary Financial Results(1):
| Three months ended December 31 , | Year ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| (amounts in millions) | ||||||||||||||||
| Total revenue | $ | 325 | $ | 152 | $ | 788 | $ | 587 | ||||||||
| Operating expenses | $ | 331 | $ | 360 | $ | 1,141 | $ | 998 | ||||||||
| Operating expenses on a non-GAAP basis | $ | 305 | $ | 335 | $ | 1,035 | $ | 898 | ||||||||
| Loss from operations | $ | (6 | ) | $ | (208 | ) | $ | (353 | ) | $ | (411 | ) | ||||
| Income (Loss) from operations on a non-GAAP basis | $ | 20 | $ | (183 | ) | $ | (247 | ) | $ | (311 | ) |
Financial Highlights
Recent Marketed Medicines Highlights
Recent Late-Stage Pipeline Highlights
Recent Other Pipeline Highlights
Recent Technology Advancement Highlights
Fourth Quarter, Full Year 2023 Financial Results and 2024 Financial Guidance
"In 2023, we earned substantial revenues due to continued success with our pipeline and technology. As a result, we exceeded our 2023 revenue guidance, which drove a
smaller than anticipated operating loss," said Elizabeth L. Hougen, chief financial officer of Ionis. "In 2024, with WAINUA's launch for ATTRv-PN underway, we are adding a new stream of royalty revenue to our substantial and sustained revenues. We
will continue to deploy our capital resources toward growth opportunities that can enable Ionis to unlock next-level value. This includes continuing to make significant investments in near-term commercial opportunities, the expansion of our wholly
owned pipeline, and advancing our technology, all of which should empower future growth."
Ionis' revenue was comprised of the following:
| Three months ended | Year ended | |||||||||||||||
| December 31 , | December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue: | (amounts in millions) | |||||||||||||||
| Commercial revenue: | ||||||||||||||||
| SPINRAZA royalties | $ | 62 | $ | 67 | $ | 240 | $ | 242 | ||||||||
| Other commercial revenue: | ||||||||||||||||
| TEGSEDI and WAYLIVRA revenue, net | 9 | 7 | 35 | 30 | ||||||||||||
| Licensing and royalty revenue | 8 | 6 | 34 | 31 | ||||||||||||
| Total commercial revenue | 79 | 80 | 309 | 303 | ||||||||||||
| Research and development revenue: | ||||||||||||||||
| Amortization from upfront payments | 76 | 15 | 125 | 69 | ||||||||||||
| Milestone payments | 11 | 14 | 101 | 74 | ||||||||||||
| License fees | 92 | - | 117 | 37 | ||||||||||||
| Other services | - | 22 | 10 | 27 | ||||||||||||
| Collaborative agreement revenue | 179 | 51 | 353 | 207 | ||||||||||||
| WAINUA joint development revenue | 67 | 21 | 126 | 77 | ||||||||||||
| Total research and development revenue | 246 | 72 | 479 | 284 | ||||||||||||
| Total revenue | $ | 325 | $ | 152 | $ | 788 | $ | 587 |
Commercial revenues in 2023 were comparable to 2022. Commercial revenue for 2023 included $240 million from SPINRAZA royalties, which was comparable to 2022. Ionis'
commercial revenue in 2023 also included royalties from QALSODY U.S. product sales.
R&D revenue significantly increased in 2023 compared to 2022 primarily due to continued success with Ionis' pipeline and technology. As a result, Ionis earned
significant partner payments, including $50 million from AstraZeneca for the FDA approval of WAINUA for ATTRv-PN in the U.S., $36 million from AstraZeneca for licensing ION826 and payments from Ionis' new collaborations with Otsuka, Roche and
Ionis' operating expenses increased for the year ended December 31, 2023 compared to 2022 primarily due to certain one-time costs, including a non-cash charge
associated with a lease exit and the license fee Ionis paid to Vect-Horus. As Ionis advanced its robust pipeline, study costs increased compared to the same periods in 2022 as many of the Company's Phase 3 studies are either fully enrolled or
approaching full enrollment, resulting in higher R&D expenses year over year. R&D expenses for the fourth quarter of 2023 were lower compared to the fourth quarter of 2022, primarily due
to the $80 million upfront payment Ionis paid to Metagenomi in 2022. Ionis' SG&A expenses increased year over year primarily due to launch preparation activities for WAINUA, olezarsen and
As of December 31, 2023, Ionis' cash, cash equivalents and short-term investments increased to $2.3 billion compared to $2.0 billion at December 31, 2022 primarily due
to the $500 million Ionis received from Royalty Pharma in January 2023 and significant partner payments throughout 2023. Ionis' working capital also increased over the same period primarily due
to the Company's higher cash and short-term investments balance. In 2023, the Company recorded a long-term liability for future royalties due to Royalty Pharma. In June 2023, Ionis issued $575
million of senior convertible notes due in June 2028 with an interest rate of 1.75%. The Company used the majority of the proceeds to repurchase $504 million of its 0.125% convertible notes.
2024 Financial Guidance
The Company's 2024 guidance reflects its plan to deploy its capital resources toward growth opportunities, including continued investments in its near-term commercial
opportunities, expanding its wholly owned pipeline and advancing its technology platform. Additionally, the Company expects to continue earning substantial revenue from its commercial portfolio and partnered programs.
| Full Year 2024 Guidance | |
| Revenue | >$575 million |
| Operating loss on a non-GAAP basis | <$475 million |
| Cash, cash equivalents and short-term investments | ~$1.7 billion |
Management will host a conference call and webcast to discuss Ionis' fourth quarter and full year 2023 results at 11:30 a.m. Eastern time on Wednesday, February 21,
2024. Interested parties may access the webcast here. A webcast replay will be available for a limited time at the same address. To access the Company's fourth quarter and full year 2023
earnings slides click here.
For more information about SPINRAZA and QALSODY, visit https://www.spinraza.com/ and https://www.qalsody.com/, respectively. QALSODY is approved under accelerated approval based on reduction in plasma neurofilament light chain (NfL) observed in patients treated with QALSODY.
Continued approval may be contingent upon verification of clinical benefit in confirmatory trial(s).
INDICATION for WAINUA (eplontersen)
WAINUA injection, for subcutaneous use, 45 mg is indicated for the treatment of the polyneuropathy of hereditary transthyretin-mediated amyloidosis in adults.
IMPORTANT SAFETY INFORMATION for WAINUA (eplontersen)
WARNINGS AND PRECAUTIONS
Reduced Serum Vitamin A Levels and Recommended Supplementation WAINUA leads to a decrease in serum vitamin A levels. Supplement with recommended daily allowance of vitamin A. Refer patient to an ophthalmologist if ocular symptoms suggestive of vitamin A deficiency occur.
Most common adverse reactions ( 9% in WAINUA-treated patients) were vitamin A decreased (15%) and vomiting (9%).
Please see link to U.S. Full Prescribing Information for WAINUA.
About Ionis Pharmaceuticals, Inc.
For three decades, Ionis has invented medicines that bring better futures to people with serious diseases. Ionis currently has five marketed medicines and a leading
pipeline in neurology, cardiology, and other areas of high patient need. As the pioneer in RNA-targeted medicines, Ionis continues to drive innovation in RNA therapies in addition to advancing new approaches in gene editing. A deep understanding of
Ionis' Forward-looking Statement
This press release includes forward-looking statements regarding Ionis' business, financial guidance and the therapeutic and commercial potential of our commercial
medicines, additional medicines in development and technologies. Any statement describing Ionis' goals, expectations, financial or other projections, intentions or beliefs is a forward-looking statement and should be considered an at-risk
statement. Such statements are subject to certain risks and uncertainties including those inherent in the process of discovering, developing and commercializing medicines that are safe and effective for use as human therapeutics, and in the
endeavor of building a business around such medicines. Ionis' forward-looking statements also involve assumptions that, if they never materialize or prove correct, could cause its results to differ materially from those expressed or implied by such
forward-looking statements. Although Ionis' forward-looking statements reflect the good faith judgment of its management, these statements are based only on facts and factors currently known by Ionis. Except as required by law, we undertake no
obligation to update any forward-looking statements for any reason. As a result, you are cautioned not to rely on these forward-looking statements. These and other risks concerning Ionis' programs are described in additional detail in Ionis' annual
report on Form 10-K for the year ended December 31, 2022, and most recent Form 10-Q, which are on file with the Securities and Exchange Commission. Copies of these and other documents are available from the Company.
In this press release, unless the context requires otherwise, "Ionis," "Company," "we," "our" and "us" all refer to Ionis Pharmaceuticals and its subsidiaries.
Ionis Pharmaceuticals is a registered trademark of Ionis Pharmaceuticals, Inc. Akcea Therapeutics is a registered trademark of Akcea
Therapeutics, Inc. TEGSEDI is a registered trademark of Akcea Therapeutics, Inc. WAYLIVRA is a registered trademark of Akcea Therapeutics, Inc. QALSODYTM is a trademark of Biogen. SPINRAZA is a
registered trademark of Biogen. WAINUATM is a registered trademark of the AstraZeneca group of companies.
Ionis Investor Contact:
D. Wade Walke, Ph.D.
info@ionisph.com 760-603-2331
Ionis Media Contact:
CorporateCommunications@ionisph.com 760-603-4679
IONIS PHARMACEUTICALS, INC.
SELECTED FINANCIAL INFORMATION
| Condensed Consolidated Statements of Operations (In Millions, Except Per Share Data) | ||||||||||||||||
| Three months ended, | Year ended | |||||||||||||||
| December 31 , | December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| (unaudited) | ||||||||||||||||
| Revenue: | ||||||||||||||||
| Commercial revenue: | ||||||||||||||||
| SPINRAZA royalties | $ | 62 | $ | 67 | $ | 240 | $ | 242 | ||||||||
| Other commercial revenue | 17 | 13 | 69 | 61 | ||||||||||||
| Total commercial revenue | 79 | 80 | 309 | 303 | ||||||||||||
| Research and development revenue: | ||||||||||||||||
| Collaborative agreement revenue | 179 | 51 | 353 | 207 | ||||||||||||
| WAINUA joint development revenue | 67 | 21 | 126 | 77 | ||||||||||||
| Total research and development revenue | 246 | 72 | 479 | 284 | ||||||||||||
| Total revenue | 325 | 152 | 788 | 587 | ||||||||||||
| Expenses: | ||||||||||||||||
| Cost of sales | 3 | 4 | 9 | 14 | ||||||||||||
| Research, development and patent | 257 | 308 | 900 | 833 | ||||||||||||
| Selling, general and administrative | 71 | 48 | 232 | 151 | ||||||||||||
| Total operating expenses | 331 | 360 | 1,141 | 998 | ||||||||||||
| Loss from operations | (6 | ) | (208 | ) | (353 | ) | (411 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense related to the sale of future royalties | (18 | ) | - | (69 | ) | - | ||||||||||
| Gain on sale of real estate assets | - | 150 | - | 150 | ||||||||||||
| Other income (expense), net | 21 | 14 | 88 | 3 | ||||||||||||
| Loss before income tax expense | (3 | ) | (44 | ) | (334 | ) | (258 | ) | ||||||||
| Income tax expense | (6 | ) | (8 | ) | (32 | ) | (12 | ) | ||||||||
| Net loss | $ | (9 | ) | $ | (52 | ) | $ | (366 | ) | $ | (270 | ) | ||||
| Basic and diluted net loss per share | $ | (0.06 | ) | $ | (0.37 | ) | $ | (2.56 | ) | $ | (1.90 | ) | ||||
| Shares used in computing basic and diluted net loss per share | 144 | 142 | 143 | 142 |
IONIS PHARMACEUTICALS, INC.
Reconciliation of GAAP to Non-GAAP Basis:
| Condensed Consolidated Operating Expenses, Income (Loss) From Operations, and Net Income (Loss) (In Millions) | ||||||||||||||||
| Three months ended December 31 , | Year ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| (unaudited) | ||||||||||||||||
| As reported research, development and patent expenses according to GAAP | $ | 257 | $ | 308 | $ | 900 | $ | 833 | ||||||||
| Excluding compensation expense related to equity awards | (20 | ) | (19 | ) | (78 | ) | (74 | ) | ||||||||
| Non-GAAP research, development and patent expenses | $ | 237 | $ | 289 | $ | 822 | $ | 759 | ||||||||
| As reported selling, general and administrative expenses according to GAAP | $ | 71 | $ | 48 | $ | 232 | $ | 151 | ||||||||
| Excluding compensation expense related to equity awards | (6 | ) | (7 | ) | (27 | ) | (26 | ) | ||||||||
| Non-GAAP selling, general and administrative expenses | $ | 65 | $ | 41 | $ | 205 | $ | 125 | ||||||||
| As reported operating expenses according to GAAP | $ | 331 | $ | 360 | $ | 1,141 | $ | 998 | ||||||||
| Excluding compensation expense related to equity awards | (26 | ) | (25 | ) | (106 | ) | (100 | ) | ||||||||
| Non-GAAP operating expenses | $ | 305 | $ | 335 | $ | 1,035 | $ | 898 | ||||||||
| As reported loss from operations according to GAAP | $ | (6 | ) | $ | (208 | ) | $ | (353 | ) | $ | (411 | ) | ||||
| Excluding compensation expense related to equity awards | (26 | ) | (25 | ) | (106 | ) | (100 | ) | ||||||||
| Non-GAAP income (loss) from operations | $ | 20 | $ | (183 | ) | $ | (247 | ) | $ | (311 | ) | |||||
| As reported net loss according to GAAP | $ | (9 | ) | $ | (52 | ) | $ | (366 | ) | $ | (270 | ) | ||||
| Excluding compensation expense related to equity awards and related tax effects | (26 | ) | (25 | ) | (106 | ) | (100 | ) | ||||||||
| Excluding gain on sale of real estate assets* | - | 150 | - | 150 | ||||||||||||
| Excluding income tax effect related to gain on sale of real estate assets | - | (9 | ) | - | (9 | ) | ||||||||||
| Non-GAAP net income (loss) | $ | 17 | $ | (168 | ) | $ | (260 | ) | $ | (311 | ) |
*In October 2022, Ionis entered into a sale and leaseback transaction for several of its real estate assets. As a result, the Company recognized a $150 million gain on
sale of real estate assets in the fourth quarter of 2022. The Company excluded the gain on sale of real estate assets and the related tax effect from its non-GAAP amounts for the applicable periods.
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) were adjusted from GAAP to exclude compensation expense related to equity awards and the related tax effects. Compensation expense related to equity awards are non-cash. In 2022, Ionis' non-GAAP net loss excluded the gain on real
estate assets related to the sale and leaseback transaction and the related tax effects. These measures are provided as supplementary information and are not a substitute for financial measures calculated in accordance with GAAP. Ionis reports
these non-GAAP 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' non-GAAP results is consistent with how
Ionis' management internally evaluates the performance of its operations.
| IONIS PHARMACEUTICALS, INC. Condensed Consolidated Balance Sheets | |
| (In Millions) |
| December 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| (unaudited) | ||||||||
| Assets: | ||||||||
| Cash, cash equivalents and short-term investments | $ | 2,331 | $ | 1,987 | ||||
| Contracts receivable | 98 | 26 | ||||||
| Other current assets | 213 | 190 | ||||||
| Property, plant and equipment, net | 71 | 74 | ||||||
| Right-of-use assets | 172 | 182 | ||||||
| Other assets | 105 | 75 | ||||||
| Total assets | $ | 2,990 | $ | 2,534 | ||||
| Liabilities and stockholders' equity: | ||||||||
| Current portion of deferred contract revenue | $ | 151 | $ | 91 | ||||
| 0.125% convertible senior notes, net - short-term | 44 | - | ||||||
| Other current liabilities | 253 | 221 | ||||||
| 1.75% convertible senior notes, net | 562 | - | ||||||
| 0% convertible senior notes, net | 625 | 622 | ||||||
| 0.125% convertible senior notes, net - long-term | - | 545 | ||||||
| Liability related to sale of future royalties, net | 514 | - | ||||||
| Long-term lease liabilities | 171 | 178 | ||||||
| Long-term obligations, less current portion | 42 | 16 | ||||||
| Long-term deferred contract revenue | 241 | 288 | ||||||
| Total stockholders' equity | 387 | 573 | ||||||
| Total liabilities and stockholders' equity | $ | 2,990 | $ | 2,534 |
Key 2024 Value Driving Events(1)
| New Product Launches | ||
| Program | Indication | Achieved |
| WAINUA | ATTRv-PN | |
| Olezarsen | FCS | |
| QALSODY (EU) | SOD1-ALS |
| Regulatory Actions | |||
| Program | Indication | Regulatory Action | Achieved |
| Eplontersen | ATTRv-PN | Additional OUS filings | |
| EMA approval decision | |||
| Additional OUS approval decision(s) | |||
| Olezarsen | FCS | NDA filing | |
| FDA approval decision | |||
| EU filing | |||
| Canada filing | |||
| Donidalorsen | HAE | NDA filing | |
| QALSODY | SOD1-ALS | EMA approval decision |
| Key Phase 3 Clinical Data Events | |||
| Program | Indication | Event | Achieved |
| Donidalorsen | HAE | OASIS-HAE topline data | |
| Donidalorsen | HAE | OASIS-HAE full data | |
| Donidalorsen | HAE | OASIS-Plus: OLE + Switch data | |
| Olezarsen | FCS | Balance study full data |
| Key Phase 2 Clinical Data Events | |||
| Program | Indication | Event | Achieved |
| Donidalorsen | HAE | 3-year OLE data | |
| IONIS-FB-L Rx | IgAN | Phase 2 data | |
| IONIS-FB-L Rx | GA | GOLDEN study data | |
| ION224 (DGAT2) | NASH | Phase 2 data | |
| ION582 (UBE3A) | Angelman syndrome | HALOS study data | |
| ION541 (ATXN2) | ALS | ALSpire study data |