Isis Pharmaceuticals Inc. (ISIS) reported a net loss of 18 cents per share in the second quarter of 2011, well below the year-ago loss of 25 cents and the Zacks Consensus loss Estimate of 21 cents.
Revenues came in at $24.8 million, in-line with the Zacks Consensus Estimate. Lower operating expenses led to the narrower second quarter 2011 loss.
Quarter in Detail
Revenues, which include license fees, milestone-related payments and other payments, increased 5.5% from the year-ago period during the second quarter of 2011.
Operating expenses fell 7.8% during the quarter to $38.9 million mainly due to lower costs associated with the completion of the Kynamro phase III program. While research and development expenses declined 8% to $36 million, general and administrative expenses declined 5.8% to $2.9 million.
2011 Outlook Maintained
Isis Pharma maintained its outlook for 2011. The company expects net operating loss in the low $40 million range. Isis Pharma expects to exit the year with more than $350 million of cash.
Kynamro Filed in the EU
Isis Pharma and partner Genzyme — now a part of Sanofi-Aventis (SNY) – filed for European approval of lead pipeline candidate, Kynamro (mipomersen) recently. The companies are seeking approval for patients with homozygous familial hypercholesterolemia (FH) and severe heterozygous FH.
The US application, which will be submitted later this year, will be for the homozygous FH indication. Isis Pharma, along with Genzyme, intends to conduct a 12-month study to support a filing for the severe heterozygous FH patient population in the US.
The acceptance of the new drug application (NDA) filing in the US will trigger a $25 million milestone payment from Genzyme.
Neutral on Isis Pharma
We currently have a Neutral recommendation on Isis Pharma which carries a Zacks #3 Rank (short-term Hold rating). We expect investor focus to remain on Kynamro.
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