Isis' first quarter 2014 loss of $0.27 per share was wider than the
year-ago loss of $0.03 per share and the Zacks Consensus Estimate
of a loss of $0.23 per share. Revenues decreased 35.1% from the
year-ago quarter to $28.2 million, missing the Zacks Consensus
Estimate of $33 million. Lower revenues and higher costs led to the
wider loss. We are positive on Isis' agreements with Glaxo, Roche,
AstraZeneca and Biogen, which not only validate its antisense
technology but also provide Isis with funds in the form of upfront,
milestone and other payments. We view Kynamro's approval in the
U.S. as a major milestone for the company. We are also pleased with
Isis' progress with its pipeline. However, we remain concerned
about Kynamro's sales ramp up which could remain slow due to the
reimbursement process and the process of finding eligible patients.
We remain Neutral on the stock.
Carlsbad, CA-based Isis Pharmaceuticals, Inc. is a drug
discovery and development company that focuses on the development
of products using ribonucleic acid (RNA)-based technologies, such
as antisense. Antisense technology is a direct route from genomics
to drugs. Antisense drugs are the first class of drugs targeted to
control expression of genes through interactions with RNA. Beyond
antisense, Isis scientists have created another technology that
exploits their knowledge of RNA. The company has approximately
1,200 issued patents (owned or exclusively licensed) worldwide as
of Feb 10, 2014 and controls one of the largest antisense and RNA
patent estates in the pharmaceutical industry.
The company discovers new drugs and out-licenses them to
partners for license fees, milestone payments, and royalties. Isis
has partnership agreements with leading pharmaceuticals companies
like Biogen, AstraZeneca, Sanofi, Roche and GlaxoSmithKline among
Isis focuses its research and development efforts primarily in
cardiovascular, metabolic and neurodegenerative diseases and cancer
while its partners are involved in the development of antisense
drugs in these and other areas, including inflammatory
Kynamro is Isis' only approved product, developed in
collaboration with Genzyme, a Sanofi company. Genzyme is marketing
the product in the U.S. for cholesterol management in patients
suffering from homozygous familial hypercholesterolemia (HoFH).
In 2013, Isis recognized $147.3 million in total revenues from
licensing its intellectual property, satellite companies, and from
forming collaborations with larger partners in developing antisense
Isis Pharmaceuticals, Inc. (ISIS): Read the Full
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