Ionis provides third quarter financial results and improved 2019 guidance

CARLSBAD, Calif., Nov. 6, 2019 /PRNewswire/ -- Ionis Pharmaceuticals, Inc. (Nasdaq: IONS) today reported its financial results for the third quarter and year-to-date 2019 and recent business highlights.

"Our commitment to innovation and to advancing our antisense technology has enabled us to produce a broad pipeline of potentially transformational medicines for patients with rare and common diseases. Our commercial medicines, SPINRAZA, TEGSEDI and WAYLIVRA, are important examples of the life-changing potential of our pipeline. In early October, we licensed AKCEA-ANGPTL3-L(Rx) to Pfizer, which plans to develop it for the millions of people with certain cardiovascular and metabolic diseases. The favorable up-front and back-end economics we achieved with this transaction, coupled with the recent commitments by Novartis, Bayer and GSK to advance our medicines for broad patient populations, reflect the substantial and increasing value of our technology," said Stanley T. Crooke, M.D., Ph.D., chairman of the board and chief executive officer of Ionis. "Our significantly improved financial guidance is a result of the substantial economics we can command for our medicines and technology. As we continue to advance our pipeline and technology, we aim to deliver even greater value to patients and shareholders. In keeping with that goal, our board of directors has authorized a share repurchase program."

Revised 2019 Financial Guidance

The Company's revised full year 2019 financial guidance consists of the following components (on a non-GAAP basis):


                      
      
         Improved Guidance  
         
              Previous Guidance



        Total Revenue    
       ~$1 billion              
            >$725 million

    ---

        R&D Expenses      
       unchanged          
         ~$360 million to $390 million

    ---

        SG&A Expenses     
       unchanged          
         ~$260 million to $290 million

    ---

        Operating
         Income         
       >$375 million             
            >$100 million

    ---

        Net Income      
       >$300 million           
            achieve net income

    ---

        Cash and
         Short-Term
         Investments    
       ~$2.2 billion              
            ~$2 billion

    ---

"Our strong financial results put us on track to achieve $1 billion in revenue and more than $300 million in net income this year. Our strong financial position is driven by growth in our commercial revenues primarily from SPINRAZA's continued blockbuster performance and substantial R&D revenues from our numerous partnerships, including our recent Pfizer collaboration. Based on these strong results, we are substantially increasing our 2019 revenue, operating income and net income guidance. We plan to deliver these full year results while continuing to invest aggressively in commercializing TEGSEDI and WAYLIVRA and advancing our pipeline and technology. Our ability to achieve these successes while maintaining a strong balance sheet and delivering value to patients and shareholders continues to set us apart from our peers," said Elizabeth L. Hougen, chief financial officer of Ionis.

Year-to-Date 2019 Financial Results and Highlights

    --  Revenues for the first nine months ended September 30, 2019 increased by
        more than 50 percent, driven by SPINRAZA's continued blockbuster
        performance and increasing R&D revenue
        --  Commercial revenue from SPINRAZA(®) (nusinersen) royalties
            increased by more than 25 percent to $212 million compared to 2018.
        --  Product sales from TEGSEDI(®) (inotersen) and WAYLIVRA(®)
            (volanesorsen) were $29 million.
        --  R&D revenue increased by more than 65 percent to $377 million
            compared to 2018.
    --  On track to achieve the fourth consecutive year of operating income and
        third consecutive year of net income, both on a non-GAAP basis
        --  Operating income and net income significantly improved to $105
            million and $110 million, respectively, compared to 2018, on a GAAP
            basis.
        --  Non-GAAP operating income increased by more than 8-fold compared to
            2018.
        --  Non-GAAP net income increased by more than 4-fold compared to 2018.
    --  Maintained substantial cash position of $2.2 billion for the third
        quarter
    --  Ionis' board of directors approved an initial share repurchase program
        of up to $125 million. The company may consider additional share
        repurchases in the future as part of the company's overall capital
        allocation strategy.

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.

"With Phase 3 programs for AKCEA-APO(a)-L(Rx) and AKCEA-TTR-L(Rx )expected to begin soon, we are on track to achieve our goal of advancing four late-stage medicines into Phase 3 development this year. These programs, together with our medicines for Huntington's disease and SOD1-ALS, represent significant commercial opportunities. We had multiple new medicines enter development, including our medicine targeting LRRK2 for the treatment of people with Parkinson's disease. We also added multiple wholly owned programs to our already broad pipeline," said Brett P. Monia, chief operating officer at Ionis. "We are looking forward to numerous upcoming data events through the middle of next year, including Phase 2 data for AKCEA-ANGPTL3-L(Rx) and AKCEA-APOCIII-L(Rx). We are also excited to report data from our aerosol-delivered medicine for cystic fibrosis, which has the potential to broaden the reach of our technology to treat diseases of the lung."

Recent Business Highlights

    --  SPINRAZA - global foundation-of-care for the treatment of patients of
        all ages with spinal muscular atrophy (SMA)
        --  Worldwide sales of SPINRAZA in the first nine months of 2019
            increased by nearly 25 percent to over $1.5 billion compared to last
            year.
        --  Patients on SPINRAZA treatment increased by approximately 11 percent
            compared to last quarter to approximately 9,300 patients across
            global commercial, clinical and expanded access settings.
        --  Biogen plans to initiate 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.
        --  Biogen presented new long-term follow up data from NURTURE and
            SHINE, adding to the body of evidence underscoring SPINRAZA's
            durable efficacy and established safety profile across a broad range
            of SMA patients.
            --  NURTURE: Data from pre-symptomatic infants treated for up to
                nearly four years demonstrating consistent safety and
                unprecedented motor milestone achievement compared to natural
                history were published online in Neuromuscular Disorders.
            --  SHINE: Data demonstrating continuing improvement or
                stabilization in one or more measures of motor function in
                patients with later-onset SMA treated with SPINRAZA for up to
                nearly six years were presented at the annual Congress of the
                European Pediatric Neurology Society.
    --  TEGSEDI - launched in multiple markets for the treatment of
        polyneuropathy of hereditary transthyretin amyloidosis (hATTR) in adult
        patients
        --  Approved in Brazil and preparing to launch through PTC Therapeutics
        --  First commercial patients treated in the United Kingdom following
            acceptance by the National Institute for Health and Care Excellence
            (NICE) and the Scottish Medicines Consortium (SMC)
        --  Successfully completed pricing negotiations in Germany
        --  Launched in Sweden and Austria following successful completion of
            reimbursement negotiations
        --  Preparing to launch in additional EU countries
    --  WAYLIVRA - launched in the EU for the treatment of adults with
        genetically confirmed familial chylomicronemia syndrome (FCS) at high
        risk for pancreatitis
        --  First commercial patients treated in Germany, and a reimbursed early
            access program (ATU) launched in France
        --  Preparing to launch in additional EU countries
        --  Published results from Phase 3 APPROACH study in patients with FCS
            in The New England Journal of Medicine (NEJM)
        --  Reported top-line results from the BROADEN study of WAYLIVRA in
            patients with familial partial lipodystrophy (FPL), which met the
            primary endpoint and a key secondary endpoint
    --  Biogen Collaboration - Developing robust pipeline of medicines for the
        treatment of neurological diseases
        --  Dosed the first patient in a Phase 1/2 study targeting LRRK2 for the
            treatment of people with Parkinson's disease
        --  Advanced multiple programs, with eight programs now in development
    --  Ionis and Akcea generated $250 million when Pfizer licensed
        AKCEA-ANGPTL3-L(Rx) to treat patients with certain cardiovascular and
        metabolic diseases.
        --  The companies are eligible to receive up to $1.3 billion in
            milestone payments plus tiered double-digit royalties on worldwide
            net sales.
        --  Ionis' 50 percent portion of the $250 million license fee is
            expected to be settled in Akcea common stock, demonstrating Ionis'
            confidence in the future of Akcea.
    --  Ionis earned a $25 million license fee from GSK to develop and
        commercialize Ionis' program for the treatment of people with chronic
        hepatitis B virus infection.
    --  Ionis generated $10 million from Bayer to advance IONIS-FXI-L(Rx) for
        the treatment of people with clotting disorders.
    --  Akcea and Ionis presented data from the Phase 1/2 study of
        AKCEA-TTR-L(Rx) in healthy volunteers demonstrating >90 percent target
        reduction and a positive safety profile at the European ATTR Amyloidosis
        meeting and at the Heart Failure Society of America.
    --  Roche expanded enrollment in the GENERATION HD1 Phase 3 study of
        IONIS-HTT(Rx) (RG6042) in patients with Huntington's disease (HD).
    --  Ionis initiated a Phase 2 study of IONIS-FB-L(Rx) in patients with IgA
        nephropathy, the second disease indication under its collaboration with
        Roche to develop the medicine for complement-mediated diseases.

Key Upcoming Events

    --  Ionis and GSK plan to report data from the HBV clinical program at the
        AASLD Liver Meeting in November 2019.
    --  Ionis and Akcea plan to initiate the Phase 3 program for AKCEA-TTR-L(Rx)
        in the fourth quarter of 2019.
    --  Novartis plans to begin enrolling patients in the Phase 3 HORIZON
        cardiovascular outcomes study of AKCEA-APO(a)-L(Rx).
    --  Akcea and Ionis plan to report top line results from Phase 2 studies of
        AKCEA-ANGPTL3-L(Rx) and AKCEA-APOCIII-L(Rx) in early 2020.
    --  Ionis plans to report data from healthy volunteers evaluated in a Phase
        1 study of IONIS-ENaC-2.5(Rx), an aerosol-delivered medicine in
        development for the treatment of people with cystic fibrosis.
    --  Roche plans to present data from the open-label extension portion of the
        Phase 1/2 study of IONIS-HTT(Rx) (RG6042) and natural history study in
        patients with Huntington's disease.

Revenue

Ionis' revenue increased by more than 50 percent for the first nine months of 2019 compared to the same period in 2018 and was comprised of the following (amounts in millions):


                                              Three months ended,          Nine months ended


                                              September 30,          September 30,


                                         2019                2018 2019                 2018




     Revenue:



          Commercial revenue:



     SPINRAZA royalties                  $82                 $70 $212                 $168



     Product sales, net                   12                      29



     Licensing and royalty revenue         2                  13   11                   14




     Total commercial revenue             96                  83  252                  182



     R&D Revenue:



     Amortization from upfront payments   23                  31  100                   92



     Milestone payments                   12                  26   64                   45



     License fees                         26                   1  198                   64



     Other services                       11                   4   15                   25




     Total R&D revenue                    72                  62  377                  226




     Total revenue                      $168                $145 $629                 $408

In the fourth quarter of 2019, Ionis expects to recognize substantially all of the $250 million upfront payment it generated for Akcea's license of AKCEA-ANGPTL3-L(Rx )to Pfizer and $10 million from Bayer for advancing IONIS-FXI-L(Rx).

Operating Expenses

Operating expenses increased for the nine months ended September 30, 2019, compared to the same period in 2018 principally due to Ionis' investment in the global launch of TEGSEDI and the launch of WAYLIVRA in the EU.

Income Tax Expense

Ionis' income tax expense in the nine months of this year was primarily due to Ionis' expectation that it will generate U.S. federal and state taxable income in 2019.

Net Loss Attributable to Noncontrolling Interest in Akcea

At September 30, 2019, Ionis owned approximately 75 percent of Akcea. The shares of Akcea third parties own represent an interest in Akcea's equity that Ionis does not control. However, because Ionis continues to maintain overall control of Akcea through its voting interest, Ionis reflects the assets, liabilities and results of operations of Akcea in Ionis' consolidated financial statements. Ionis reflects the noncontrolling interest attributable to other owners of Akcea's common stock in a separate line called "Net loss attributable to noncontrolling interest in Akcea" on Ionis' statement of operations. Ionis' net loss attributable to noncontrolling interest in Akcea for the three and nine months ended September 30, 2019 decreased compared to the same periods in 2018 primarily because Akcea had a smaller net loss for the three and nine months ended September 30, 2019 compared to the same periods in 2018 primarily as a result of the $150 million license fee Akcea earned from Novartis when Novartis licensed AKCEA-APO(a)-L(Rx) in the first quarter of 2019. Upon closing of Pfizer's license of AKCEA-ANGPTL3-L(Rx), Ionis expects to receive 6.9 million shares of Akcea common stock as payment for the sublicense fee Akcea owes Ionis.

Net Income (Loss) Attributable to Ionis Common Stockholders

The increase in Ionis' net income attributable to Ionis' common stockholders for the three and nine months ended September 30, 2019 compared to the same periods in 2018 was primarily due to an increase in revenue. On a GAAP basis, Ionis reported net income attributable to Ionis' common stockholders for the three months and nine months ended September 30, 2019, compared to net losses for the same periods in 2018. On a non-GAAP basis, Ionis reported higher net income attributable to Ionis' common stockholders for the three and nine months ended September 30, 2019, compared to the same periods in 2018.

Ionis' basic and diluted earnings per share also improved during the three months and nine months ended September 30, 2019, compared to the same periods in 2018.

Balance Sheet

Ionis maintained its strong balance sheet, ending the third quarter of 2019 with cash, cash equivalents and short-term investments of $2.2 billion, compared to $2.1 billion at December 31, 2018. Ionis expects its cash position to increase in the fourth quarter of 2019 when it receives the payments the Company recently generated from Pfizer and Bayer.

Webcast

Today, at 11:30 a.m. Eastern Time, Ionis will conduct a live webcast to discuss this earnings release and related activities. Interested parties may access the webcast here. A webcast replay will be available for a limited time at the same address.

About Ionis Pharmaceuticals, Inc.

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 Akcea Therapeutics, Inc., Ionis' majority-owned affiliate. 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, particularly those inherent in the process of discovering, developing and commercializing drugs that are safe and effective for use as human therapeutics, and in the endeavor of building a business around such drugs. 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. 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, 2018, and the most recent Form 10-Q quarterly filing, which are on file with the SEC. 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" refers to Ionis Pharmaceuticals and its subsidiaries.

Ionis Pharmaceuticals((TM)) is a 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. SPINRAZA(®) is a registered trademark of Biogen.


                                        
              
                IONIS PHARMACEUTICALS, INC.

                                      
              
                SELECTED FINANCIAL INFORMATION

      
              
                Condensed Consolidated Statements of Operations
               (In Millions, Except Per Share Data)




                                                                                         Three months ended,                            Nine months ended,


                                                                                         September 30,                            September 30,


                                                                                 2019                            2018           2019                  2018





                                                                                             
              (unaudited)



      Revenue:



           Commercial revenue:



      SPINRAZA royalties                                                         $82                             $70           $212                  $168



      Product sales, net                                                          12                                            29



      Licensing and royalty revenue                                                2                              13             11                    14




      Total commercial revenue                                                    96                              83            252                   182


           Research and development revenue under collaborative agreements         72                              62            377                   226




      Total revenue                                                              168                             145            629                   408




      Expenses:



             Cost of products sold                                                 1                                             3



          Research, development and patent                                       104                              95            317                   301



          Selling, general and administrative                                     60                              69            204                   179




      Total operating expenses                                                   165                             164            524                   480




      Income (loss) from operations                                                3                            (19)           105                  (72)



      Other income (expense):



      Investment income                                                           13                              10             39                    19



      Interest expense                                                          (12)                           (11)          (35)                 (34)




      Income (loss) before income tax benefit (expense)                            4                            (20)           109                  (87)





      Income tax benefit (expense)                                                14              
              -     -          (10)                  (1)






      Net income (loss)                                                          $18                           $(20)           $99                 $(88)



       Net loss attributable to noncontrolling interest in Akcea
        Therapeutics, Inc.                                                          8                              15             11                    42



       Net income (loss) attributable to Ionis Pharmaceuticals, Inc.
        common stockholders                                                       $26                            $(5)          $110                 $(46)






      Basic net income (loss) per share                                        $0.19                         $(0.03)         $0.81               $(0.33)




      Diluted net income (loss) per share                                      $0.18                         $(0.03)         $0.79               $(0.33)



       Shares used in computing basic net income (loss) per share                 141                             137            140                   131



       Shares used in computing diluted net income (loss) per share               143                             137            143                   131


                                      
              
                IONIS PHARMACEUTICALS, INC. SELECTED FINANCIAL INFORMATIONCondensed Consolidating Statement of Operations (In Millions)




                                                                                                
              Nine months ended,
                                                                                                
              September 30, 2019


                                                                                                   
              (unaudited)


                                                                                  
             Ionis                
              Akcea                  
              Eliminations            
     Ionis Consolidated




     Revenue:



          Commercial revenue:



     SPINRAZA royalties                                                           $
             $212                   
              $ -                              
              $ -                             $212



     Product sales, net                                                                                                        29                                                                            29



     Licensing and royalty revenue                                                              5                                6                                                                            11




     Total commercial revenue                                                                 217                               35                                                                           252


          Research and development revenue under collaborative
           agreements                                                                          201                              176                                                                           377



         Intercompany revenue                                                                  97                                                                         (97)




     Total revenue                                                                            515                              211                                         (97)                              629



     Expenses:



            Cost of products sold                                                                                              10                                          (7)                                3


          Research, development and patent expenses                                            253                              145                                         (81)                              317



         Selling, general and administrative                                                  102                              102                                                                           204


      Profit/ loss share for TEGSEDI commercialization
       activities                                                                               29                             (29)




     Total operating expenses                                                                 384                              228                                         (88)                              524





     Income (loss) from operations                                                            131                             (17)                                         (9)                              105





     Other income (expense):



     Investment income                                                                         35                                4                                                                            39



     Interest expense                                                                        (35)                                                                                                         (35)



     Income (loss) before income tax expense                                                  131                             (13)                                         (9)                              109





     Income tax expense                                                                       (9)                             (1)                                                                         (10)






     Net income (loss)                                                                       $122                            $(14)                                        $(9)                              $99



      Net loss attributable to noncontrolling interest in
       Akcea Therapeutics, Inc.                                                                                                                                             11                                11



      Net income (loss) attributable to Ionis
       Pharmaceuticals, Inc. common stockholders                                              $122                            $(14)                                          $2                              $110


                                 
              
                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,                         Nine months ended,

                                                                           September 30,                         September 30,


                                                                    2019                   2018                  2019                  2018



                                                                           
              (unaudited)


                   As reported research, development and
                    patent expenses according to GAAP               $104                    $95                  $317                  $301


          Excluding compensation expense related to
           equity awards                                            (24)                  (19)                 (72)                 (57)





                   Non-GAAP research, development and
                    patent expenses                                  $80                    $76                  $245                  $244



                   As reported selling, general and
                    administrative expenses according to
                    GAAP                                             $60                    $69                  $204                  $179


          Excluding compensation expense related to
           equity awards                                                                  (16)                 (39)                 (40)





                   Non-GAAP selling, general and
                    administrative expenses                          $60                    $53                  $165                  $139



                   As reported operating expenses according
                    to GAAP                                         $165                   $164                  $524                  $480


          Excluding compensation expense related to
           equity awards                                            (24)                  (35)                (112)                 (97)





                   Non-GAAP operating expenses                      $141                   $129                  $412                  $383





                   As reported income (loss) from operations
                    according to GAAP                                 $3                  $(19)                 $105                 $(72)


      Excluding compensation expense related to
       equity awards                                                (24)                  (35)                (112)                 (97)



                   Non-GAAP income from operations                   $27                    $16                  $217                   $25



                   As reported net income (loss)
                    attributable to Ionis Pharmaceuticals,
                    Inc. common stockholders according to
                    GAAP                                             $26                   $(5)                 $110                 $(46)


      Excluding compensation expense related to
       equity awards attributable to Ionis
       Pharmaceuticals, Inc. common
       stockholders                                                 (25)                  (32)                (104)                 (89)


      Income tax effect related to compensation
       expense related to equity awards
       attributable to Ionis Pharmaceuticals,
       Inc. common stockholders                                       12                                          25



                   Non-GAAP net income attributable to
                    Ionis Pharmaceuticals, Inc. common
                    stockholders according to GAAP                   $39                    $27                  $189                   $43

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 Ionis Pharmaceuticals, Inc. common shareholders were adjusted from GAAP to exclude compensation expense related to equity awards and the related tax effect. Compensation expense related to equity awards are non-cash. Ionis has regularly reported non-GAAP measures for operating results as non-GAAP results. 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)




                                        September 30,                        
              December 31,


                                                 2019                                            2018



                                         (unaudited)



     Assets:


        Cash, cash equivalents and
         short-term investments                $2,221                                          $2,084


        Contracts receivable                       49                                              13


        Other current assets                      138                                             111


        Property, plant and
         equipment, net                           149                                             132



       Other assets                              338                                             328



           Total assets                        $2,895                                          $2,668





      Liabilities and
       stockholders' equity:


        Other current liabilities                 $94                                            $120


        Current portion of deferred
         contract revenue                         138                                             160


        1% convertible senior notes               596                                             568


        Long-term obligations,
         less current portion                      76                                              65


        Long-term deferred
         contract revenue                         493                                             567


        Total Ionis stockholders'
         equity                                 1,336                                           1,049


        Noncontrolling interest in
         Akcea Therapeutics, Inc.                 162                                             139



        Total stockholders' equity              1,498                                           1,188



          Total liabilities and
           stockholders' equity                $2,895                                          $2,668


                                            
             
                IONIS PHARMACEUTICALS, INC.

                                       
             
                Condensed Consolidating Balance Sheet

                                                  
              
                (In Millions)




                                      
             September 30, 2019


                                       
             (unaudited)



                                                                                                                        
         Ionis


                                    
       Ionis               
              Akcea                  
         Eliminations      
       Consolidated






     Assets:


        Cash, cash equivalents and
         short-term investments          $1,968                           $253                          
              $-                  $2,221


        Contracts receivable                 38                             11                                                             49


        Other current assets                124                             14                                                            138


        Property, plant and
         equipment, net                     144                              5                                                            149



       Other assets                        959                            100                                  (721)                     338




          Total assets                  $3,233                           $383                                 $(721)                  $2,895





      Liabilities and stockholders'
       equity:


        Other current liabilities           $62                            $32                          
              $-                     $94


        Current portion of deferred
         contract revenue                   127                             11                                                            138


        1% convertible senior notes         596                                                                                          596


        Long-term obligations, less
         current portion                     61                             15                                                             76


        Long-term deferred contract
         revenue                            495                                                                  (2)                     493


        Total stockholders' equity
         before noncontrolling
         interest                         1,892                            325                                  (881)                   1,336


        Noncontrolling interest in
         Akcea Therapeutics, Inc.                                                                               162                      162



        Total stockholders' equity        1,892                            325                                  (719)                   1,498



           Total liabilities and
            stockholders' equity         $3,233                           $383                                 $(721)                  $2,895

View original content to download multimedia:http://www.prnewswire.com/news-releases/ionis-provides-third-quarter-financial-results-and-improved-2019-guidance-300952465.html

SOURCE Ionis Pharmaceuticals, Inc.