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A Look at Ionis’s 3Q17 Revenue Stream

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Jan. 10 2018, Updated 5:40 p.m. ET

Ionis’s revenue

Ionis Pharmaceuticals (IONS) reported a 9% rise in its revenue to $120.9 million in 3Q17 compared to $110.9 million in 3Q16.

Wall Street analysts expect a 31.5% fall in the company’s revenue to $109.9 million in 4Q17.

The above graph compares Ionis’s revenues over the last few quarters.

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Revenue performance

As we discussed earlier, Ionis reports its revenue under two categories:

  • Commercial revenue, which includes revenue from Spinraza royalties, and licensing and royalty revenues
  • Research and development revenues from its collaborative agreements with other companies

Ionis reported commercial revenue of $33.8 million in 3Q17 compared to its commercial revenue of $2.0 million in 3Q16. The company’s commercial revenue included $32.9 million from Spinraza royalties and $0.88 million from licensing and royalty revenues in 3Q17. Further, the company’s research and development revenues under its collaborative agreements in 3Q17 were $87.1 million compared to $108.9 million in 3Q16.

For the first nine months of 2017 (which ended on September 30, 2017), Ionis’s Spinraza royalties were $60.5 million, its licensing and royalty revenues were $5.0 million, and its research and development revenues under its collaborative agreements were $269.9 million. The company’s total revenue was $335.4 million during the first nine months of 2017 compared to $186.3 million in the same period in 2016.

The VanEck Vectors Biotech ETF (BBH) holds 70.9% of its total investments in biotechnology companies and 29.1% in pharmaceutical and healthcare equipment companies. BBH holds 1.4% in Ionis Pharmaceuticals, 4.1% in BioMarin Pharmaceutical (BMRN), 4.5% in Incyte Corporation (INCY), and 4.8% in Vertex Pharmaceuticals (VRTX).

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