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A Look at Ionis’s Key Revenue Drivers in 4Q17

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Updated

Ionis’s revenues

Ionis Pharmaceuticals (IONS) reported 7.5% growth in revenues to $172.3 million during 4Q17 as compared to revenues of $160.3 million during 4Q16. Wall Street analysts estimate 31.7% growth in revenues for 1Q18 to $145.3 million.

The above graph compares the revenues for Ionis since 1Q16.

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Revenue performance

Ionis reports revenues under two categories:

  • commercial revenues including licensing and royalty revenues
  • research and development revenues from collaborative agreements with other companies

Ionis reported commercial revenues of $56.6 million during 4Q17 as compared to $1.0 million during 4Q16. The commercial revenues included $52.1 million from Spinraza royalties and $0.8 million from the licensing and royalty revenues during 4Q17. The research and development revenues under the collaborative agreements for 4Q17 were $115.7 million as compared to $159.3 million for 4Q16.

For full-year 2017, the Spinraza royalties were $112.5 million, the licensing and royalty revenues were $0.8 million, and the research and development revenues under the collaborative agreements were $385.6 million. The total revenues were $507.7 million during 2017 as compared to $346.6 million during 2016.

The iShares NASDAQ Biotechnology ETF (IBB) holds 67.3% of its total investments in biotechnology and medical devices companies, 22.1% in pharmaceutical companies. Its remaining investments are in biopharmaceuticals, biomedical devices, biotherapeutic drugs, medical equipment companies. IBB holds 0.8% of its total investments in Ionis Pharmaceuticals (IONS), 1.1% in Seattle Genetics (SGEN), 2.0% in BioMarin Pharmaceuticals (BMRN), and 7.6% in Biogen (BIIB).

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