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
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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