Ionis Pharmaceuticals (NasdaqGS:IONS) Q4 2025 Earnings call February 25, 2026 08:30 AM ET Company ParticipantsBeth Hougen - Executive VP and CFOBrett Monia - CEO, Member of the Board of Directors and Founding ScientistEric Swayze - Executive Vice President of ResearchEugene Schneider - Executive VP, Chief Clinical Development and Operations OfficerHolly Kordasiewicz - Executive VP and Chief Development OfficerKyle Jenne - Executive VP and Chief Global Product Strategy OfficerMichael Ulz - Executive Director ...

Ionis Pharmaceuticals (NasdaqGS:IONS) Q4 2025 Earnings call February 25, 2026 08:30 AM ET Company ParticipantsBrett Monia - CEO, Member of the Board of Directors and Founding ScientistElizabeth Hougen - Executive VP and CFOEric Swayze - Executive Vice President of ResearchEugene Schneider - Executive VP, Chief Clinical Development and Operations OfficerHolly Kordasiewicz - Executive VP and Chief Development OfficerKyle Jenne - Executive VP and Chief Global Product Strategy OfficerMichael Ulz - Executive Dir ...

Group 1 - GSK and Ionis have achieved the primary endpoint in the Phase 3 clinical trial of Bepirovirsen for chronic hepatitis B, with plans to submit regulatory filings in Q1 2026 [1] - Merck's subcutaneous formulation of Pembrolizumab has received FDA approval for 2025, with a focus on transitioning patients from intravenous infusion to the new formulation in 2026 [1] - Guangsheng Pharmaceutical's innovative drug GST-HG141 has completed patient enrollment for Phase 3 clinical trials, while Alvotech and Teva's biosimilar Eylea (AVT06) is expected to launch in the U.S. in Q4 2026 [1]

Investment Rating - The report maintains a "Recommended" investment rating for the pharmaceutical industry [1] Core Insights - The supply of raw materials in the pharmaceutical industry is accelerating, with a focus on subsequent price and volume changes [2] - The global GLP-1 market is evolving, with Chinese companies continuing to explore international opportunities [3] - Leading companies are gradually entering the small nucleic acid field, which is expected to drive the development of supporting industrial chains [4] - The retail pharmaceutical market is showing positive trends, with chain pharmacies enhancing their positioning [5] - The value of oral immunosuppressive drugs is gaining attention [6] Summary by Sections 1. Pharmaceutical Market Tracking - The pharmaceutical industry outperformed the CSI 300 index by 1.47 percentage points in the last week, ranking 15th among 31 primary industry indices [18] - The pharmaceutical industry index increased by 0.14% during the same period [18] 2. Pharmaceutical Sector Trends and Valuation - The pharmaceutical industry index has a current PE (TTM) of 37.31, above the five-year historical average of 31.11 [40] 3. Recent Research Achievements - The report highlights various deep-dive studies on topics such as the growth of biological agents and oral medications, and the impact of policies on the inhalation drug industry [44] 4. Recent Industry Policies and News - The National Healthcare Security Administration issued a notice to accelerate the cultivation and application of new scenarios in the medical insurance sector [46] - Recent approvals for clinical trials of new drugs by major pharmaceutical companies, including AstraZeneca and Hengrui Medicine, indicate ongoing innovation in the industry [47][48] 5. Key Companies and Profit Forecasts - The report includes profit forecasts for several companies, with recommendations for stocks such as Yuyuan Pharmaceutical and Sunshine Nuohua, indicating a positive outlook for their performance [9]

Group 1 - The small nucleic acid drug industry is recommended to focus on three categories: clinical progress type (key targets with Phase III data + beneficiaries of medical insurance), technology platform type (extracellular delivery + multi-target technology companies), and international cooperation type (local companies endorsed by MNCs) to capture dual dividends from new drug launches and data readout windows [1] - Small nucleic acid drugs have become a core track in precision medicine due to their technological breakthroughs and therapeutic differentiation, covering thousands of rare and chronic disease-related targets [1] - The global market for small nucleic acid drugs is expected to grow from $2.7 billion in 2019 to $5.7 billion in 2024, with a CAGR of 16.2%, and projected to reach $20.6 billion by 2029, driven by the increase in chronic diseases and significant drug commercialization [2] Group 2 - The industry is entering a high growth phase, with over 50% of the 19 drugs currently on the market targeting rare diseases, while the proportion of chronic diseases is expected to gradually increase [2] - Key players in the industry include Alnylam and Ionis, which dominate the market with their technological barriers, while local companies like Reebio and Bowang Pharmaceutical are focusing on niche areas [2] - 2025 is anticipated to be a pivotal year for small nucleic acid drugs, with several key drugs expected to achieve significant sales milestones and clinical endpoints [3]

Core Insights - The small nucleic acid drug sector is experiencing a significant surge, marking the beginning of a golden era driven by technological breakthroughs and capital enthusiasm [2][11][22] Industry Developments - On January 5, 2026, Sanofi's APOC3 siRNA drug Plozasiran was approved for domestic market use to treat hyperlipidemia [1] - On January 9, 2026, Rebio Biotech, known as "China's first small nucleic acid stock," successfully listed on the Hong Kong Stock Exchange, with its stock price soaring by 40% on the first day, leading to a market capitalization exceeding 13 billion HKD [1] - China National Pharmaceutical Group announced a 1.2 billion CNY acquisition of Hegia Biotech, securing the world's first clinically validated liver-targeted delivery platform capable of annual dosing [1] Market Trends - The global small nucleic acid drug market has seen nearly 100 business development (BD) collaborations in the past three years, with transaction numbers and amounts increasing annually, reaching over 30 BD deals in 2025 totaling nearly 30 billion USD [4][9] - Notable transactions in 2025 included Novartis acquiring Avidity Biosciences for 12 billion USD and multiple other significant deals involving RNA therapies [7][9] Clinical Advancements - Ionis's APOC3 ASO drug Olezarsen showed promising results in reducing triglyceride levels by up to 72% in patients with severe hypertriglyceridemia, leading to an increase in peak annual sales forecast from 1.5 billion USD to 2.5 billion USD [12] - GSK's ASO therapy Bepirovirsen is expected to be the first drug to achieve functional cure for chronic hepatitis B, with a peak annual sales potential of 2 billion USD [12] Emerging Opportunities - The small nucleic acid drugs are expanding into various therapeutic areas, including obesity and kidney diseases, with promising results from clinical trials demonstrating significant weight loss and metabolic health improvements [13][15] - The number of small nucleic acid drugs in development globally has surpassed 1,200, with siRNA and ASO therapies being the most prominent [17] Strategic Collaborations - Domestic companies are increasingly recognized for their innovative value in small nucleic acid drugs, with active BD transactions, including significant collaborations by Rebio Biotech and other firms [18][21] - Companies like Saintin Biotech are forming strategic partnerships with major pharmaceutical firms to advance their small nucleic acid drug pipelines [19] Conclusion - The convergence of technological advancements, capital influx, and successful clinical outcomes is propelling small nucleic acid drugs into a pivotal position within the pharmaceutical industry, with China poised to become a global innovation hub [22]

Investment Rating - The report maintains a "Recommended" investment rating for the pharmaceutical industry as of January 26, 2026 [1] Core Insights - The report emphasizes the importance of supply-side variables, particularly the operating rates of raw material drugs, and highlights the potential for price recovery in the antibiotic market due to changes in competition and supply dynamics [2] - Multi-departmental policy support is enhancing the value positioning of pharmacies, transforming them from mere sales points to comprehensive health service platforms [3] - The trend of Chinese innovative drugs going global is gaining momentum, with significant licensing deals and the need for continuous clinical data validation to support long-term investment confidence [4] - Major companies are increasingly investing in the small nucleic acid field, which is expected to accelerate the development of the supporting industrial chain [5] - A new pricing system for GLP-1 drugs is forming in China, with expectations for market growth driven by a large patient population [6] - The report highlights the market value of oral autoimmune drugs, with promising clinical trial results for new treatments [7] Summary by Sections 1. Pharmaceutical Market Tracking - The pharmaceutical industry outperformed the CSI 300 index by 0.23 percentage points in the last week, ranking 27th among 31 sectors [20] 2. Pharmaceutical Sector Trends and Valuation - The pharmaceutical sector index increased by 4.98% over the past month, outperforming the CSI 300 index by 3.21 percentage points [37] - The current PE (TTM) for the pharmaceutical sector is 38.51, above the five-year historical average of 31.06 [43] 3. Recent Research Achievements - The report includes various deep-dive studies on topics such as the growth of the blood products industry and the impact of policies on inhalation formulations [45] 4. Recent Industry Policies and News - Recent policies include the approval of numerous medical device registrations and the promotion of high-quality development in the pharmaceutical retail sector [46][48]

Investment Rating - The report maintains a "Recommended" investment rating for the pharmaceutical industry as of January 19, 2026 [1] Core Insights - 2025 marked a significant year for Chinese innovative drugs going global, with a total transaction amount of $135.655 billion, including $7 billion in upfront payments and 157 deals, setting historical highs. The trend continues into 2026, with notable licensing agreements from companies like Yilian Biotech and Rongchang Biotech, indicating strong global competitiveness for Chinese innovative drugs [2] - Major companies are increasingly investing in the small nucleic acid field, with significant acquisitions and clinical approvals. For instance, China National Pharmaceutical Group acquired Hangzhou Hejiya Biopharmaceutical for 1.2 billion RMB, while international firms like Novartis and GSK are also advancing in this area [3] - The GLP-1 market is expected to grow despite new pricing systems, with ongoing collaborations and new product launches anticipated in 2026. The market for GLP-1 drugs is projected to remain robust due to the large patient population for weight loss and diabetes [4] - The oral autoimmune drug market is gaining attention, with promising results from Takeda's new TYK2 inhibitor for psoriasis. Other domestic companies are also advancing in this space, exploring new targets for oral small molecules [5] - The brain-computer interface sector is poised for industrialization, with companies like Neuralink set to produce devices in 2026. Domestic advancements and regulatory support are enhancing the potential for this technology in medical applications [6] - The ZAP-X radiation therapy device is expected to capture a significant market share in China, with rapid growth projected in non-invasive tumor radiation treatment, driven by increasing clinical recognition and adoption [8] Summary by Sections Industry Trends - The pharmaceutical sector is witnessing a resurgence in interest towards innovative drugs, with a notable increase in the innovative drug index by 8.97% since early January 2026, outperforming the CSI 300 index by 6.77 percentage points [2] Company Recommendations - Recommended companies include: - **Yuekang Pharmaceutical** and **Sunshine Nuohua** in the small nucleic acid space - **Yahong Pharmaceutical** and **Yifang Biotechnology** in the autoimmune sector - **Zhongsheng Pharmaceutical** in the GLP-1 market - **Baiyang Pharmaceutical** for ZAP-X radiation therapy - **Meihao Medical** for brain-computer interface technology [10] Market Opportunities - The non-invasive tumor radiation treatment market is projected to grow from 27.2 billion RMB in 2018 to 59.4 billion RMB by 2024, with a compound annual growth rate of 13.9% [8]

Group 1 - The vaccine ETF (159643) rose over 1.1%, indicating a strengthening of its technological attributes, which may become a new driving force in the pharmaceutical sector [1] - 2025 is projected to be a landmark year for Chinese innovative drugs going global, with total outbound licensing transaction amounts reaching $135.655 billion, including upfront payments of $7 billion and a record 157 transactions [1] - The innovative drug sector is expected to create a new valuation anchor, with an anticipated index increase of 35.31% in 2025 [1] Group 2 - Breakthroughs in small nucleic acid drugs have been achieved, with GSK's Bepirovirsen completing Phase III studies for chronic hepatitis B, potentially becoming the first functional cure [1] - Domestic companies such as Yuyuan Pharmaceutical and Reborn Biotech have made progress in liver-targeted and thrombosis treatment areas [1] - The development of oral immunomodulatory drugs is accelerating, with Takeda's TYK2 inhibitor zasocitinib showing superior results in Phase III studies for psoriasis compared to placebo [1] Group 3 - Brain-computer interface technology is entering the industrialization phase, with Neuralink's devices set for mass production and increased domestic policy support [1] - The ZAP-X radiation therapy device presents breakthroughs in brain tumor treatment, revealing a potential market worth billions in China [1] - The commercialization of AI in healthcare is advancing, with pathology fee reforms incorporating AI-assisted diagnostics into pricing structures [1]

Group 1 - The year 2025 is significant for China's innovative drug exports, with a total transaction amount reaching $135.655 billion, a down payment of $7 billion, and a record 157 transactions [1] - The innovative drug sector not only provides R&D funding for companies but also reshapes the industry's valuation system, with the innovative drug index increasing by 35.31%, outperforming the CSI 300 index by 17.65% [1] - Breakthroughs in small nucleic acid drugs have been noted, with GSK's Bepirovirsen for chronic hepatitis B completing Phase III studies, and domestic companies like Yuyuan Pharmaceutical and Reborn Biotech making significant progress in liver-targeted drug development [1] Group 2 - In the oral autoimmune drug sector, Takeda's TYK2 inhibitor zasocitinib shows excellent performance in Phase III studies for psoriasis, with domestic companies such as Yifang Biotech and Nocare Biopharma also advancing related clinical trials [1] - Brain-computer interface technology is entering the industrialization phase, with Neuralink planning to mass-produce devices by 2026, supported by domestic policies accelerating medical application implementation [1] - The ZAP-X radiation therapy device brings new breakthroughs in brain tumor treatment, with domestic market demand potential reaching a scale of hundreds of billions [1] Group 3 - The commercialization path for AI in healthcare is becoming clearer, with pathology fee reforms establishing pricing mechanisms for AI-assisted diagnosis, leading to accelerated development in consumer applications [1]