Ionis Pharmaceuticals(IONS) - 2020 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company ended Q2 2020 with a net income of $8 million on a non-GAAP basis, an increase compared to Q1 results [25] - Cash and investments totaled more than $2.3 billion at the end of June, indicating strong financial health [12][27] - The company reaffirmed its financial guidance for 2020, projecting increased revenue and earnings in the second half of the year [12][26] Business Line Data and Key Metrics Changes - SPINRAZA sales reached $495 million in Q2, generating $72 million in royalty revenue for the company [13] - TEGSEDI and WAYLIVRA reported product sales of $16 million in Q2, showing substantial growth compared to the previous year [17] - R&D revenue exceeded $55 million in Q2, with significant contributions from various therapeutic franchises [23] Market Data and Key Metrics Changes - Over 11,000 patients were on SPINRAZA treatment worldwide by the end of June, reflecting strong market demand [13] - Biogen estimates over 60,000 SMA patients in markets where they have a commercial presence, a nearly 35% increase from previous estimates [14] - TEGSEDI is now commercially available in 15 countries, with ongoing efforts to broaden access in new markets [19] Company Strategy and Development Direction - The company aims to deliver 10 or more marketing applications for various diseases by the end of 2025, positioning itself as a leader in transformative medicines [11][49] - There is a focus on expanding the Ionis-owned pipeline, particularly in rare neurological diseases, while also pursuing strategic partnerships [67][70] - The company is prioritizing its rare neurological disease pipeline, with several drugs expected to enter clinical studies soon [68][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2020 financial goals and highlighted the strength of the clinical pipeline [10][12] - The company is adapting to the evolving global pandemic while continuing to execute its strategic objectives [44] - There is optimism regarding the potential for significant R&D revenue growth in the second half of the year [26] Other Important Information - The company is advancing its pulmonary franchise with plans to initiate a Phase 2 study of Ionis-ENAC-2.5Rx in COPD patients [41] - The collaboration with AstraZeneca is expected to yield updates on several ongoing programs later this year [38] Q&A Session Summary Question: What level of knockdown is targeted in the inhaled program? - The company targets a 50% reduction in ENaC messenger RNA and protein for the CF program, with confidence in achieving greater reductions [55][56] Question: How should R&D revenue be modeled for the long term? - The company expects sustained and potentially growing R&D revenues due to strong partnerships and increasing milestone payments [60] Question: How does the company view its long-term strategic vision? - The company plans to strategically partner where it makes sense while prioritizing its Ionis-owned pipeline, particularly in neurology [66][70] Question: What is the competitive landscape for the prekallikrein program? - The company believes there is room for more players in the HAE market, focusing on differentiation through dosing and administration [88] Question: What is the timeline for the APOCIII LICA program? - The company plans to initiate the Phase 3 study for APOCIII LICA in FCS patients this year, with potential market availability next year [125]