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How Ionis’s Q2 2018 Earnings Trended

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Revenue trend in Q2 2018

Ionis Pharmaceuticals (IONS), one of the leading biopharmaceutical companies, is focused on developing RNA-targeted therapies. Ionis has developed many drugs for the treatment of various life-threatening diseases through its broadly applicable drug discovery platform. Ionis missed Wall Street analyst estimates and reported earnings per share of -$0.29 on revenues of $117.7 million during Q2 2018 as compared to EPS estimates of -$0.09 on revenues of $135.5 million during the quarter.

The above chart compares the revenues for Ionis since the first quarter of 2017.

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Q2 2018 revenue performance

Ionis reported 5% YoY growth in revenues to $117.7 million during Q2 2018 as compared to $112.3 million during the second quarter of 2017. Ionis’s revenue sources include commercial revenues from Spinraza royalties and other licensing and royalty revenues as well as research and development revenues under collaborative agreements. The revenue growth was driven by an increase in commercial revenues from Spinraza royalties. We’ll discuss the company’s performance in detail later in the series.

H1 2018 revenue performance

Ionis reported a 15% increase in YoY revenues for the first half of 2018 at $262 million as compared to revenues of $228 million during the first half of 2017.

The increase in revenues was driven by the increase in commercial revenues from Spinraza royalties. Other factors that drove the growth in year-to-date revenues include revenues from amortization of upfront payments due to collaboration with Biogen (BIIB).

The iShares NASDAQ Biotechnology ETF (IBB) holds 0.7% of its total investments in Ionis Pharmaceuticals (IONS), 0.8% in BeiGene (BGNE), 1.0% in Sarepta Therapeutics (SRPT), and 2.2% in BioMarin Pharmaceuticals (BMRN).

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