Isis Pharmaceuticals Inc.
) reported a net loss of 21 cents per share in the fourth quarter
of 2012, a penny wider than the year-ago loss of 20 cents but 2
cents narrower than the Zacks Consensus Estimate of loss of a 23
cents per share.
Revenues decreased 38.7% to $19.9 million, beating the Zacks
Consensus Estimate of $16 million. Revenues include license fees,
milestone-related payments and other payments.
Full year loss came in at 79 cents, narrower than the Zacks
Consensus Estimate and the year-ago loss of 85 cents each.
Revenues increased 3% to $99.1 million, edging past the Zacks
Consensus Estimate of $98 million.
Operating expenses decreased 9.9% during the final quarter of
2012 to $46 million. Research and development expenses decreased
9.4% to $42.8 million and general and administrative expenses
were down 14.9% to $3.2 million.
We note that Isis Pharma's lead product, Kynamro (mipomersen
sodium), received US Food and Drug Administration (FDA) approval
in Jan 2013 for the treatment of familial hypercholesterolemia
(FH). Isis Pharma's partner
) is marketing the product in the US. Isis Pharma will share
profits from Kynamro.
The company will initially get 30% of the share which will
linearly increase to 50% as revenue touches the $2 billion mark
on a yearly basis. Sanofi is also looking to get the drug
approved in the rest of the world including Europe.
We note that in the first quarter of 2013, Isis Pharma is
expected to record significant milestone revenues. The company
received a milestone payment of $25 million from Sanofi in Jan
2013 on US approval of Kynamro. In Feb 2013, Isis Pharma received
a $7.5 million milestone payment from
The payment primarily relates to the initiation of a phase
II/III clinical study of ISIS-TTRRx. The study will span 15
months enrolling 200 patients. Isis is developing ISIS-TTRRx in
collaboration with Glaxo for the potential treatment of
transthyretin (TTR) amyloidosis.
GLAXOSMITHKLINE (GSK): Free Stock Analysis
ISIS PHARMACEUT (ISIS): Free Stock Analysis
LANNETT INC (LCI): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis
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Isis Pharma currently carries a Zacks Rank #3 (Hold). Though
impressed by Isis Pharma's pipeline, we expect investor focus to
remain on Kynamro's ramp up.
Lannett Company, Inc.
) looks more attractive in the pharma sector with a Zacks Rank #1