Isis Pharmaceuticals, Inc. (ISIS): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report


Isis' second quarter 2014 loss of $0.10 per share was wider than the year-ago loss of $0.09, but narrower than the Zacks Consensus Estimate of a loss of $0.12. Second quarter revenues grew 49.8% from the year-ago quarter to $57.1 million, well above the Zacks Consensus Estimate of $42 million. Revenues were driven by milestone payments of more than $40 million. 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 others.

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 diseases.

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 drug candidates.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: ISIS , RNA

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