Ionis Pharmaceuticals(IONS)2024-02-20 16:00Financial Performance - Total revenue for 2023 was 587.4 million in 2022[470] - Net loss for 2023 was 269.7 million in 2022[470] - Investment income surged to 25.3 million in 2022, representing an increase of about 251.0%[497] - The company recorded a net loss of 269.7 million in 2022, indicating an increase in losses of approximately 35.8%[508] Operating Expenses - Total operating expenses for 2023 were 997.6 million in 2022, reflecting a 14.4% increase[470] - Operating expenses, excluding non-cash compensation, were 897.3 million in 2022[478] - SG&A expenses rose to 150.3 million in 2022, marking an increase of approximately 54.6%[496] - Medical affairs expenses rose to 17.9 million in 2022, reflecting a 27.9% increase[489] - Total drug development expenses for 2023 were 457.7 million in 2022[486] - Total R&D support expenses increased to 73.9 million in 2022, reflecting a rise of about 30.0%[493] - Manufacturing and development chemistry expenses decreased to 86.1 million in 2022, a reduction of approximately 14.5%[491] Revenue Sources - R&D revenue increased to 284.0 million in 2022, marking a 68.7% increase[472] - WAINUA joint development revenue was 76.8 million in 2022[476] - The company recognizes R&D revenue from collaboration agreements, which include technology licenses, R&D services, and manufacturing services[526] Cash and Investments - Cash, cash equivalents, and short-term investments totaled 1,986.9 million in 2022[470] - The company raised approximately 2.1 billion from the sale of equity securities since inception[510] Contractual Obligations and Agreements - Total contractual obligations as of December 31, 2023, amounted to 500 million upfront payment in January 2023[517] - The company entered into a royalty purchase agreement with Royalty Pharma in January 2023 to monetize future royalties from SPINRAZA and pelacarsen[532] Tax and Liabilities - Income tax expense increased to 11.7 million in 2022, reflecting an increase of about 175.2%[504] - As of December 31, 2023, a hypothetical 10 percent increase in the liability for preclinical and clinical development costs would result in an increase in loss before income tax benefit of approximately $10.6 million[531] Revenue Recognition Practices - Revenue recognition involves assessing the propriety of revenue recognition and associated deferred revenue, as well as estimating future royalty payments[525] - The company uses an input method to estimate revenue from R&D services with upfront payments, adjusting revenue if estimates change[528] - Milestone payments are recognized based on whether they relate to services performed by the company or its partners, with full recognition for partner-achieved milestones[529] - The company assesses the transaction price for collaboration agreements and allocates it to performance obligations based on relative stand-alone selling prices[526] - Historical accrual estimates for clinical development costs have not materially differed from actual amounts, indicating effective estimation practices[530] Development Pipeline - The company has nine medicines in Phase 3 development and multiple additional medicines in early and mid-stage development[469] Risk Management - The company does not utilize derivative financial instruments to manage exposure to interest rate changes and believes it is not subject to material risks from market changes as of December 31, 2023[534] - Future royalty payments from Novartis for pelacarsen are subject to various factors, including regulatory approval and competing products, which could materially impact estimates[533]