Isis Pharmaceuticals, Inc. (ISIS) Misses Q1 EPS by 4c

Isis Pharmaceuticals, Inc. (NASDAQ: ISIS) reported Q1 EPS of ($0.27), $0.04 worse than the analyst estimate of ($0.23). Revenue for the quarter came in at $28.2 million versus the consensus estimate of $35.12 million.

On a GAAP basis, Isis reported a loss from operations of $29.7 million for the three months ended March 31, 2014 compared to income from operations of $1.6 million for the same period in 2013. Isis maintained its strong cash position and ended the first quarter of 2014 with approximately $631 million in cash compared to $657 million at December 31, 2013.

"In the first quarter we have accomplished a number of significant milestones, setting the stage for a year of continuing growth. We reported positive clinical data on both ISIS-SMNRx and ISIS-APOCIIIRx, and are on track to initiate Phase 3 programs for both of these drugs this year. These Phase 3 studies will add to our Phase 3 study already ongoing for ISIS-TTRRx, which we began dosing over a year ago and is progressing according to plan. We started our first clinical study on ISIS-ANGPTL3Rx and added new drugs to the pipeline, including ISIS-HTTRx to treat Huntington's Disease. The continued growth and maturation of our pipeline means that we will have numerous pipeline events throughout the year, including in the middle of the year, reporting Phase 2 data from ISIS-GCGRRx and ISIS-FXIRx," said B. Lynne Parshall, chief operating officer at Isis.

"We started 2014 in a strong financial position and remain on track to meet our 2014 guidance. As our pipeline of partnered drugs mature, we have many opportunities to earn significant revenue from our partners. In the first quarter of 2014, we have earned more than $27 million from our partners. We are on track to meet our projection to end the year with more than $160 million in revenue, including more than $110 million in milestone payments as our partnered drugs achieve key development milestones. For example, we will earn $18 million from Biogen Idec when we initiate the Phase 3 study in infants with SMA. We plan to end 2014 with three drugs in Phase 3 development and nine drugs in Phase 2 development. This represents a significant maturation of our pipeline. Nevertheless we will continue to keep our spending increases consistent with our projections. As such, we are on track to end the year with a pro forma NOL in the low $50 million range and more than $575 million in cash," said Elizabeth L. Hougen, chief financial officer of Isis.

For earnings history and earnings-related data on Isis Pharmaceuticals, Inc. (ISIS) click here.

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