Ionis Pharmaceuticals(IONS) - 2024 Q4 - Annual Report

Financial Performance - Total revenue for 2024 was $705.1 million, a decrease of 10.5$787.6 million in 2023[376] - The company recorded a net loss of $453.9 million in 2024, compared to a net loss of$366.3 million in 2023, indicating an increase of about 23.9%[412] - The income tax benefit for 2024 was $6.2 million, a significant improvement from an income tax expense of$32.3 million in 2023[409] - Investment income increased from $89.0 million in 2023 to$107.0 million in 2024, a growth of about 20.2% driven by higher interest rates[403] - Interest expense increased from $12.7 million in 2023 to$17.0 million in 2024, representing a rise of approximately 33.9% due to new convertible notes[404] Operating Expenses - Total operating expenses increased to $1,180.2 million in 2024 from$1,141.4 million in 2023, resulting in a loss from operations of $475.1 million[376] - Non-cash compensation expense related to equity awards increased to$130.2 million in 2024 from 105.7 million in 2023, driven by higher headcount and stock prices[384] - SG&A expenses rose from 232.6 million in 2023 to $267.5 million in 2024, marking an increase of approximately 15$31.9 million in 2024 from 22.9 million in 2023, reflecting advancements in the late-stage pipeline[396] - Total R&D support expenses increased from 96.0 million in 2023 to $101.2 million in 2024, reflecting a rise of about 6.3$216.1 million in 2024 from $240.4 million in 2023, impacted by a non-recurring annual order from a single country[378] - WAINUA joint development revenue decreased to$79.4 million in 2024 from 126.4 million in 2023, primarily due to winding down development activities[382] - The company launched WAINUA in the U.S. in late January 2024 and TRYNGOLZA in late December 2024, contributing to new commercial revenue sources[378] - R&D revenue is recognized from various collaboration agreements, including upfront payments, milestone payments, and license fees, requiring significant estimates and judgments[432] - Revenue from R&D services is recognized based on an input method estimating total costs to complete performance obligations, which may require adjustments if estimates change[433] Cash and Investments - Cash, cash equivalents, and short-term investments were 2,297.7 million as of December 31, 2024, down from $2,331.2 million in 2023[376] - The company raised approximately$489 million from a public stock offering in September 2024, contributing to increased cash available for investments[403] Development Costs - Total drug development expenses were $568.5 million in 2024, compared to$564.8 million in 2023, indicating stable development costs[392] - Manufacturing and development chemistry expenses decreased from $74.1 million in 2023 to$67.1 million in 2024, a reduction of approximately 9.4%[398] - As of December 31, 2024, a hypothetical 10% increase in liability for preclinical and clinical development costs would increase loss before income tax benefit by approximately $7.7 million[436] - The company maintains an accrual for preclinical and clinical development costs, estimating liabilities based on contracted fees and expected expenses[435] Future Estimates and Risks - Factors affecting future royalty payments include regulatory approvals and competition, which could lead to significant changes in revenue estimates[439] - The allocation of transaction price to performance obligations involves estimating relative stand-alone selling prices, which may require significant judgments[431] - The company assesses the propriety of revenue recognition and deferred revenue, along with estimating future royalty payments under its royalty purchase agreement[430] - The company recognizes revenue related to milestone payments based on the probability of achievement and the estimated period of performance[437] - In 2023, the company entered into a royalty purchase agreement with Royalty Pharma to monetize future royalties from SPINRAZA and pelacarsen, with estimates subject to change based on sales performance[438] Contractual Obligations - Total contractual obligations as of December 31, 2024, amounted to$1,513.4 million, with $31.6 million due within one year[417] - The company does not utilize derivative financial instruments to manage exposure to interest rate changes, believing it is not subject to material risks from such changes as of December 31, 2024[440] Historical Performance - The company has generated approximately$7.9 billion in revenue since its inception through December 31, 2024[413]