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What’s Ionis Pharmaceuticals’ Valuation after Q2 Results?

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Ionis Pharmaceuticals’ valuation

Ionis Pharmaceuticals (IONS), a leading RNA-targeted therapeutics developing company, aims to develop best-in-class drugs for life-threatening diseases. Ionis commercializes the approved products in collaboration with other pharmaceuticals companies. Ionis reported revenues of $118 million in Q2 2018, a 5% increase in year-over-year (or YoY) revenues as compared to the second quarter of 2017.

The above chart compares revenues and earnings per share (or EPS) for Ionis Pharmaceuticals since the first quarter of 2017.

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Forward PE

Ionis Pharmaceuticals is trading at a forward PE multiple of ~74.2x on August 8 as compared to the industry average of ~14.2x. Other competitors such as Incyte Pharmaceuticals (INCY), Abbott Laboratories (ABT), and Regeneron Pharmaceuticals (REGN) are trading at a lower forward PE multiple of 34.5x, 20.7x, and 17.9x, respectively, as compared to Ionis.

Forward EV-to-EBITDA ratio

As of August 8, the company is trading at a forward EV-to-revenues multiple of 287.4x as compared to the industry average of 11.5x. Other competitors like Incyte Pharmaceuticals (INCY), Abbott Laboratories (ABT), and Regeneron Pharmaceuticals (REGN) are trading at a lower forward EV-to-EBITDA multiple of 23.8x, ~15.9x, and 13.6x, respectively, as compared to Ionis.

Forward EV-to-revenues ratio

As of August 8, the company is trading at a forward EV-to-revenues multiple of 6.7x compared to the industry average of 4.4x. Other competitors like Incyte Pharmaceuticals (INCY), Abbott Laboratories (ABT), and Regeneron Pharmaceuticals (REGN) are trading at a lower forward EV-to-revenues multiple of 6.2x, ~4.1x, and 5.9x, respectively, as compared to Ionis.

The VanEck Vectors Biotech ETF (BBH) holds 1.4% of its total investments in Ionis (IONS), 5.1% in Regeneron (REGN), 3.7% in Incyte (INCY), and 5.5% in Allergan (AGN).

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