Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | IONIS PHARMACEUTICALS INC | |
Entity Central Index Key | 874,015 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 125,520,380 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 227,505 | $ 129,630 |
Short-term investments | 807,796 | 893,085 |
Contracts receivable | 36,858 | 62,955 |
Inventories | 9,060 | 9,982 |
Other current assets | 62,064 | 73,082 |
Total current assets | 1,143,283 | 1,168,734 |
Property, plant and equipment, net | 123,188 | 121,907 |
Patents, net | 22,914 | 22,004 |
Deposits and other assets | 10,175 | 10,129 |
Total assets | 1,299,560 | 1,322,774 |
Current liabilities: | ||
Accounts payable | 13,833 | 24,886 |
Accrued compensation | 12,166 | 25,151 |
Accrued liabilities | 66,470 | 66,618 |
Current portion of long-term obligations | 47 | 1,621 |
Current portion of deferred contract revenue | 120,127 | 125,336 |
Total current liabilities | 212,643 | 243,612 |
Long-term deferred contract revenue | 85,446 | 108,026 |
1 percent convertible senior notes | 541,635 | 533,111 |
Long-term obligations, less current portion | 12,946 | 12,974 |
Long-term mortgage debt | 59,789 | 59,771 |
Total liabilities | 912,459 | 957,494 |
Stockholders' equity: | ||
Common stock, $0.001 par value; 300,000,000 shares authorized, 125,448,746 and 124,976,373 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 125 | 125 |
Additional paid-in capital | 1,576,954 | 1,553,681 |
Accumulated other comprehensive loss | (33,234) | (31,759) |
Accumulated deficit | (1,242,454) | (1,241,034) |
Total Ionis stockholders' equity | 301,391 | 281,013 |
Noncontrolling interest in Akcea Therapeutics, Inc. | 85,710 | 84,267 |
Total stockholders' equity | 387,101 | 365,280 |
Total liabilities and stockholders' equity | $ 1,299,560 | $ 1,322,774 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 125,448,746 | 124,976,373 |
Common stock, shares outstanding (in shares) | 125,448,746 | 124,976,373 |
1 Percent Convertible Senior Notes [Member] | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Interest rate on convertible senior notes | 1.00% | 1.00% |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||
Revenue | $ 144,419 | $ 115,800 |
Expenses: | ||
Research, development and patent | 104,067 | 82,638 |
Selling, general and administrative | 43,653 | 13,677 |
Total operating expenses | 147,720 | 96,315 |
Income (loss) from operations | (3,301) | 19,485 |
Other income (expense): | ||
Investment income | 3,610 | 2,280 |
Interest expense | (10,938) | (11,363) |
Other expenses | (168) | (1,438) |
Income (loss) before income tax expense | (10,797) | 8,964 |
Income tax expense | (15) | 0 |
Net income (loss) | (10,812) | 8,964 |
Net loss attributable to noncontrolling interest in Akcea Therapeutics, Inc. | 9,392 | 0 |
Net income (loss) attributable to Ionis Pharmaceuticals, Inc. common stockholders | $ (1,420) | $ 8,964 |
Basic net income (loss) per share (in dollars per share) | $ (0.01) | $ 0.07 |
Shares used in computing basic net income (loss) per share (in shares) | 125,330 | 122,861 |
Diluted net income (loss) per share (in dollars per share) | $ (0.01) | $ 0.07 |
Shares used in computing diluted net income (loss) per share (in shares) | 125,330 | 124,972 |
Commercial Revenue [Member] | ||
Revenue: | ||
Revenue | $ 42,023 | $ 7,801 |
SPINRAZA Royalties [Member] | ||
Revenue: | ||
Revenue | 41,081 | 5,211 |
Licensing and Other Royalty Revenue [Member] | ||
Revenue: | ||
Revenue | 942 | 2,590 |
Research and Development Under Collaborative Agreements [Member] | ||
Revenue: | ||
Revenue | $ 102,396 | $ 107,999 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | ||
Net income (loss) | $ (10,812) | $ 8,964 |
Unrealized gains (losses) on debt securities, net of tax | (1,530) | 266 |
Reclassification adjustment for realized gains included in net income (loss) | 0 | (374) |
Currency translation adjustment | 55 | (6) |
Comprehensive income (loss) | (12,287) | 8,850 |
Comprehensive loss attributable to noncontrolling interests | 9,423 | 0 |
Comprehensive income (loss) attributable to Ionis Pharmaceuticals, Inc. stockholders | $ (2,864) | $ 8,850 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities: | ||
Net income (loss) | $ (10,812) | $ 8,964 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 2,363 | 1,980 |
Amortization of patents | 443 | 393 |
Amortization of premium on investments, net | 1,192 | 1,608 |
Amortization of debt issuance costs | 441 | 396 |
Amortization of convertible senior notes discount | 8,083 | 7,506 |
Amortization of long-term financing liability for leased facility | 0 | 1,675 |
Stock-based compensation expense | 28,451 | 20,912 |
Gain on investment in Regulus Therapeutics, Inc. | 0 | (374) |
Non-cash losses related to patents, licensing and property, plant and equipment | 175 | 93 |
Changes in operating assets and liabilities: | ||
Contracts receivable | 26,097 | 38,686 |
Inventories | 922 | 688 |
Other current and long-term assets | 11,422 | (14,077) |
Accounts payable | (13,144) | 472 |
Accrued compensation | (12,985) | (15,919) |
Accrued liabilities and deferred rent | (1,695) | (6,273) |
Deferred contract revenue | (27,788) | 75,935 |
Net cash provided by operating activities | 13,165 | 122,665 |
Investing activities: | ||
Purchases of short-term investments | (91,157) | (266,185) |
Proceeds from the sale of short-term investments | 173,724 | 99,223 |
Purchases of property, plant and equipment | (2,343) | (3,237) |
Acquisition of licenses and other assets, net | (738) | (983) |
Proceeds from the sale of Regulus Therapeutics stock | 0 | 2,507 |
Net cash provided by (used in) investing activities | 79,486 | (168,675) |
Financing activities: | ||
Proceeds from equity awards | 5,675 | 6,324 |
Proceeds from the issuance of common stock to Novartis | 0 | 71,640 |
Stock issuance costs paid | (451) | (778) |
Principal payments on debt and capital lease obligations | 0 | (1,640) |
Net cash provided by financing activities | 5,224 | 75,546 |
Net increase in cash and cash equivalents | 97,875 | 29,536 |
Cash and cash equivalents at beginning of period | 129,630 | 84,685 |
Cash and cash equivalents at end of period | 227,505 | 114,221 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 644 | 106 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Amounts accrued for capital and patent expenditures | 2,091 | 1,648 |
Unpaid deferred offering costs | $ 0 | $ 319 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation We prepared the unaudited interim condensed consolidated financial statements for the three months ended March 31, 2018 and 2017 on the same basis as the audited financial statements for the year ended December 31, 2017. We included all normal recurring adjustments in the financial statements, which we considered necessary for a fair presentation of our financial position at such dates and our operating results and cash flows for those periods. Results for the interim periods are not necessarily indicative of the results for the entire year. For more complete financial information, these financial statements, and notes thereto, should be read in conjunction with the audited financial statements for the year ended December 31, 2017 included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC. In the condensed consolidated financial statements we included the accounts of Ionis Pharmaceuticals, Inc. and the consolidated results of our majority-owned subsidiary, Akcea Therapeutics, Inc., which we formed in December 2014. In July 2017, Akcea completed an initial public offering, or IPO. As of July 19, 2017, the closing of the IPO, and at March 31, 2018, we owned approximately 68 percent of Akcea. In April 2018, we received 8 million shares of Akcea’s stock for the license of TEGSEDI (inotersen) and AKCEA-TTR-L Rx Refer to the noncontrolling interest in Akcea section in Note 2, Significant Accounting Policies, for further information related to our accounting for our investment in Akcea. Unless the context requires otherwise, “Ionis”, “Company,” “we,” “our,” and “us” refers to Ionis Pharmaceuticals, Inc. and its majority owned subsidiary, Akcea Therapeutics, Inc. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Revenue Recognition Adoption of New Revenue Recognition Accounting Standard (Topic 606) In May 2014, the FASB issued accounting guidance on the recognition of revenue from customers. This guidance supersedes the revenue recognition requirements we previously followed in Accounting Standards Codification, or ASC, Topic 605, Revenue Recognition , or Topic 605, and created a new Topic 606, Revenue from Contracts with Customers , or Topic 606. The following table summarizes the adjustments we were required to make to revenue we originally reported at March 31, 2017 to adopt Topic 606 (in thousands): Three Months Ended March 31, 2017 As Previously Reported under Topic 605 Topic 606 Adjustment As Revised Revenue: Commercial revenue: SPINRAZA royalties $ 5,211 $ — $ 5,211 Licensing and other royalty revenue 3,547 (957 ) 2,590 Total commercial revenue 8,758 (957 ) 7,801 Research and development revenue under collaborative agreements 101,546 6,453 107,999 Total revenue $ 110,304 $ 5,496 $ 115,800 During the first quarter of 2017, our revenue increased $5.5 million under Topic 606, compared to Topic 605. The change in our revenue was primarily due to: ● A change in how we recognize milestone payments: Topic 606 requires us to amortize more of the milestone payments we achieve, rather than recognizing the milestone payments in full in the period in which we achieved the milestone event as we did under Topic 605. This change resulted in a $10.3 million increase in our revenue for the first quarter of 2017. ● A change in how we calculate revenue for payments we are recognizing into revenue over time: Under Topic 605, we amortized payments into revenue evenly over the period of our obligations. Under Topic 606, we are required to use an input method to determine the amount we amortize each reporting period. Each period, we will review our “inputs” such as our level of effort expended or costs incurred relative to the total expected inputs to satisfy the performance obligation. For certain collaborations, such as Novartis and Bayer, the input method resulted in a change to the revenue we had previously recognized using a straight-line amortization method. This change resulted in a $3.8 million decrease in our revenue for the first quarter of 2017. Our updated revenue recognition policy reflecting Topic 606 is as follows: Our Revenue Sources We generally recognize revenue when we have satisfied all contractual obligations and are reasonably assured of collecting the resulting receivable. We are often entitled to bill our customers and receive payment from our customers in advance of recognizing the revenue. In the instances in which we have received payment from our customers in advance of recognizing revenue, we include the amounts in deferred revenue on our condensed consolidated balance sheet. Commercial Revenue: SPINRAZA royalties and Licensing and other royalty revenue We earn commercial revenue primarily in the form of royalty payments on net sales of SPINRAZA. Research and development revenue under collaborative agreements We often enter into collaboration agreements to license and sell our technology on an exclusive or non-exclusive basis in exchange for upfront fees, license fees, milestone payments, royalties and/or profit sharing arrangements. Our collaboration agreements typically contain multiple elements, or performance obligations, including technology licenses or options to obtain technology licenses, research and development, or R&D, services, and in certain cases manufacturing services. Our collaboration agreements are detailed in Note 6, Collaborative Arrangements and Licensing Agreements. Steps to Recognize Revenue We use a five step process to determine the amount of revenue we should recognize and when we should recognize it. The five step process is as follows: 1. Identify the contract Accounting rules require us to first determine if we have a contract with our partner, including confirming that we have met each of the following criteria: ● We and our partner approved the contract and we are both committed to perform our obligations; ● We have identified our rights, our partner’s rights and the payment terms; ● We have concluded that the contract has commercial substance, meaning that the risk, timing, or amount of our future cash flows is expected to change as a result of the contract; and ● We believe collectability is probable. 2. Identify the performance obligations We next identify the distinct goods and services we are required to provide under the contract. Accounting rules refer to these as our performance obligations. We typically have only one performance obligation at the inception of a contract, which is to perform R&D services. Often times when we enter into a collaboration agreement in which we provide our partner with an option to license a drug in the future. We may also provide our partner with an option to request that we provide additional goods or services in the future, such as active pharmaceutical ingredient, or API. We evaluate whether these options are material rights at the inception of the agreement. If we determine an option is a material right, we will consider the option a separate performance obligation. Historically, we have concluded that the options we grant to license a drug in the future or to provide additional goods and services as requested by our partner are not material rights. These items are contingent upon future events that may not occur. When a partner exercises its option to license a drug or requests additional goods or services, then we identify a new performance obligation for that item. Additionally, in some cases, we deliver a license at the start of an agreement. If we determine that our partner has full use of the license and we do not have any additional performance obligations related to the license after delivery, then we consider the license to be a separate performance obligation. 3. Determine the transaction price We then determine the transaction price by reviewing the amount of consideration we are eligible to earn under the collaboration agreement, including any variable consideration. Under our collaboration agreements, consideration typically includes fixed consideration in the form of an upfront payment and variable consideration in the form of potential milestone payments, license fees, royalties or profit share arrangements. At the start of an agreement, our transaction price usually only consists of the upfront payment. We do not typically include any payments we may receive in the future in our initial transaction price because the payments are not probable. We reassess the total transaction price at each reporting period to determine if we should include additional payments in the transaction price. Our most common type of variable consideration are milestone payments. We recognize milestone payments using the most likely amount method because we will either receive the milestone payment or we will not, which makes the potential milestone payment a binary event. The most likely amount method requires us to determine the likelihood of earning the milestone payment. We include a milestone payment in the transaction price once it is probable we will achieve the milestone event. Most often, we do not consider our milestone payments probable until we or our partner achieve the milestone event because the majority of our milestone payments are contingent upon events that are not within our control. 4. Allocate the transaction price Next, we allocate the transaction price to each of our performance obligations. When we have to allocate the transaction price to more than one performance obligation, we make estimates of the relative stand-alone selling price of each performance obligation because we do not typically sell our goods or services on a stand-alone basis. We may engage a third party, independent valuation specialist to assist us with determining a stand-alone selling price for collaborations in which we deliver a license at the start of an agreement. We estimate the stand-alone selling price of these licenses using appropriate valuation methodologies, such as the relief from royalty method. Under this method, we estimate the amount of income, net of taxes, for the license. We then discount the projected income to present value. The significant inputs we use to determine the projected income of a license could include: ● Estimated future product sales; ● Estimated royalties on future product sales; ● Contractual milestone payments; ● Expenses we expect to incur; ● Income taxes; and ● An appropriate discount rate. We typically estimate the selling price of R&D services by using our internal estimates of the cost to perform the specific services and estimates of expected cash outflows to third parties for services and supplies over the expected period that we will perform the R&D services. The significant inputs we use to determine the selling price of our R&D services include: ● The number of internal hours we estimate we will spend performing these services; ● The estimated cost of work we will perform; ● The estimated cost of work that we will contract with third parties to perform; and ● The estimated cost of API we will use. For purposes of determining the stand-alone selling price of the R&D services we perform and the API we will deliver, accounting guidance requires us to include a markup for a reasonable profit margin. We do not reallocate the transaction price after the start of an agreement to reflect subsequent changes in stand-alone selling prices. 5. Recognize revenue We recognize revenue in one of two ways, over time or at a point in time. We recognize revenue over time when we are executing on our performance obligation over time and our partner receives benefit over time. For example, we recognize revenue over time when we provide R&D services. We recognize revenue at a point in time when our partner receives full use of an item at a specific point in time. For example, we recognize revenue at a point in time when we deliver a license or API to a partner. For R&D services that we recognize over time, we measure our progress using an input method. The input methods we use are based on the effort we expend or costs we incur toward the satisfaction of our performance obligation. We estimate the amount of effort we expend or costs we incur in a given period, relative to the estimated total effort or costs to satisfy the performance obligation. This results in a percentage that we multiply by the transaction price to determine the amount of revenue we will recognize each period. The approach requires numerous estimates and significant judgement that if they change over the course of the collaboration, may affect the timing and amount of revenue that we recognize in the current and future periods. During the three months ended March 31, 2017, we recognized $8.2 million of additional revenue related to changes in our estimates. The additional revenue was primarily from our Biogen collaboration for IONIS-DMPK Rx Rx The following are examples of when we typically recognize revenue based on the types of payments we receive. Upfront Payments When we enter into a collaboration agreement with an upfront payment, we typically record the entire upfront payment as deferred revenue if our only performance obligation is for R&D services we will provide in the future. We amortize the upfront payment into revenue as we perform the R&D services. For example, under our new SMA collaboration with Biogen, we received a $25 million upfront payment in December 2017. We allocated the upfront payment to our single performance obligation, R&D services. We are, therefore, amortizing the $25 million upfront payment using an input method over the estimated period of time we are providing R&D services. Refer to Note 6, Collaborative Arrangements and Licensing Agreements Milestone Payments We recognize milestone payments that relate to an ongoing performance obligation over our period of performance. For example, in the third quarter of 2017, we initiated a Phase 1/2a clinical study of IONIS-MAPT Rx Conversely, we recognize in full those milestone payments that we earn based on our partners’ activities when our partner achieves the milestone event. For example, in the second quarter of 2017, we earned a $50 million milestone payment from Biogen for the EU approval of SPINRAZA. Our revenue recognition of milestone payments we earn based on our partners’ activities did not change as a result of adopting Topic 606. License Fees We generally recognize as revenue the total amount we determine to be the stand-alone selling price of a license when we deliver the license to our partner because our partner has full use of the license and we do not have any additional performance obligations related to the license after delivery. Royalties We recognize royalty revenue in the period in which the counterparty sells the related product, which in certain cases may require us to estimate our royalty revenue. Amendments to Agreements From time to time we amend our collaboration agreements. For these agreements, we are required to assess the following items to determine the accounting for the amendment: 1) If the additional goods and/or services are distinct from the other performance obligations in the original agreement; and 2) If the goods and/or services are at a stand-alone selling price. If we conclude the goods and/or services under the amendment are distinct and at a stand-alone selling price, we account for the amendment as a separate agreement. If we conclude the goods and/or services are not distinct under the amendment, we then assess whether the additional goods or services are distinct under the original agreement. If the goods and/ or services are distinct under the original agreement then we allocate the remaining transaction price from the original agreement and the additional transaction price from the amendment to the remaining goods and/or services. If they are not distinct from the original agreement, we update the transaction price for our single performance obligation and recognize any change in our estimated revenue as a cumulative adjustment. For example, in May 2015, we entered into an exclusive license agreement with Bayer to develop and commercialize IONIS-FXI Rx for the prevention of thrombosis. As part of the agreement, Bayer paid us a $100 million upfront payment. At the onset of the agreement, we were responsible for completing a Phase 2 study of IONIS-FXI Rx in people with end-stage renal disease on hemodialysis and for providing an initial supply of API. In February 2017, we amended our agreement with Bayer to advance IONIS-FXI Rx and to initiate development of IONIS-FXI-L Rx , which Bayer licensed. As part of the 2017 amendment, Bayer paid us $75 million. We are also eligible to receive milestone payments and tiered royalties on gross margins of IONIS-FXI Rx and IONIS-FXI-L Rx . Under the 2017 amendment, we concluded we had a new agreement with three performance obligations. These performance obligations were to deliver the license of IONIS-FXI-L Rx , to provide R&D services and to deliver API. We allocated the $75 million transaction price to the performance obligations. Note 6, Collaborative Arrangements and Licensing Agreements of our accounting treatment for our Bayer collaboration. Multiple Agreements From time to time, we may enter into separate agreements at or near the same time with the same partner. We evaluate such agreements to determine whether we should account for them individually as distinct arrangements or whether the separate agreements should be combined and accounted for together. We evaluate the following to determine the accounting for the agreements: Whether the agreements are negotiated together with a single objective; Whether the amount of consideration in one contract depends on the price or performance of the other agreement; or Whether the goods and/or services promised under the agreements are a single performance obligation. Our evaluation involves significant judgment to determine whether a group of agreements might be so closely related that we are required to account for them as a combined arrangement. For example, in the first quarter of 2017, we and Akcea entered into two separate agreements with Novartis at the same time: a collaboration agreement and a stock purchase agreement, or SPA. We evaluated the Novartis agreements to determine whether we should treat the agreements separately or combine them. We considered that the agreements were negotiated concurrently and in contemplation of one another. Based on these facts and circumstances, we concluded that we should evaluate the provisions of the agreements on a combined basis. Refer to Note 6, Collaborative Arrangements and Licensing Agreements for further discussion of the accounting treatment for the Novartis collaboration. Contracts Receivable Our contracts receivable balance represents the amounts we have billed our partners for goods we have delivered or services we have performed that are due to us unconditionally. When we bill our partners with payment terms based on the passage of time, we consider the contract receivable to be unconditional. We typically receive payment within one quarter of billing our partner Unbilled SPINRAZA Royalties Our unbilled SPINRAZA royalties represent our right to receive consideration from Biogen in advance of when we are eligible to bill Biogen for SPINRAZA royalties. We include these unbilled amounts in other current assets on our condensed consolidated balance sheet. Deferred Revenue We are often entitled to bill our customers and receive payment from our customers in advance of our obligation to provide services or transfer goods to our partners. In the instances in which we have billed our customers or received payment from our customers in advance of satisfying our performance obligation, we include the amounts in deferred revenue on our condensed consolidated balance sheet. The following table summarizes the adjustments we were required to make to our deferred revenue amounts to adopt Topic 606 (in thousands): At December 31, 2017 As Previously Reported under Topic 605 Topic 606 Adjustment As Revised Current portion of deferred revenue $ 106,465 $ 18,871 $ 125,336 Long-term portion of deferred revenue 72,708 35,318 108,026 Total $ 179,173 $ 54,189 $ 233,362 Our deferred revenue balance increased $54.2 million at December 31, 2017 under Topic 606, compared to Topic 605. The increase was primarily related to the change in the accounting for certain milestone payments and the way in which we amortize payments. Under Topic 605, we previously recognized the majority of the milestone payments we earned in the period we achieved the milestone event, which did not impact our deferred revenue balance. Under Topic 606 we are now amortizing more milestone payments over the period of our performance obligation, which adds to our deferred revenue balance. Additionally, under Topic 605 we amortized payments evenly over the period of our obligation. Under Topic 606, we are required to use an input method to determine the amount we amortize each reporting period. The increase in deferred revenue relates to agreements with the following partners: $24.2 million from Biogen; $15.9 million from AstraZeneca; $11.8 from Novartis; and $2.3 million from other partners. Noncontrolling Interest in Akcea Therapeutics, Inc. Prior to Akcea’s IPO in July 2017, we owned 100 percent of Akcea’s stock and consolidated 100 percent of Akcea’s results in our financial statements. In connection with Akcea’s IPO, Akcea sold shares of its common stock to third parties. We owned approximately 68 percent of Akcea after the IPO and at March 31, 2018. Rx The shares third parties own represent an interest in Akcea’s equity that is not controlled by us. However, as we continue to maintain overall control of Akcea through our voting interest, we reflect the assets, liabilities and results of operations of Akcea in our consolidated financial statements. We reflect the noncontrolling interest attributable to other owners of Akcea’s common stock in a separate line on the statement of operations and a separate line within stockholders’ equity in our condensed consolidated balance sheet. In addition, we record a noncontrolling interest adjustment to account for the stock options Akcea grants, which if exercised, will dilute our ownership in Akcea. This adjustment is a reclassification within stockholders’ equity from additional paid-in capital to noncontrolling interest in Akcea equal to the amount of stock-based compensation expense Akcea had recognized. Cash, cash equivalents and investments We consider all liquid investments with maturities of three months or less when we purchase them to be cash equivalents. Our short-term investments have initial maturities of greater than three months from date of purchase. We classify our short-term debt investments as “available-for-sale” and carry them at fair market value based upon prices for identical or similar items on the last day of the fiscal period. We record unrealized gains and losses as a separate component of comprehensive income (loss) and include net realized gains and losses in gain (loss) on investments. We use the specific identification method to determine the cost of securities sold. We also have equity investments of less than 20 percent ownership in publicly and privately held biotechnology companies that we received as part of a technology license or partner agreement. At March 31, 2018, we held an equity investment in one publicly held company, Antisense Therapeutics Limited, or ATL. Our other investments were in five privately-held companies, Atlantic Pharmaceuticals Limited, Dynacure SAS, Kastle Therapeutics, Seventh Sense Biosystems and Suzhou Ribo Life Science CO. In January 2018, we adopted the amended accounting guidance related to the recognition, measurement, presentation, and disclosure of certain financial instruments. The amended guidance requires us to measure and record equity investments, except those accounted for under the equity method of accounting that have a readily determinable fair value, at fair value and for us to recognize the changes in fair value in our consolidated statement of operations. Prior to 2018, we recognized unrealized gains and losses through accumulated other comprehensive income. For investments without a readily determinable fair value, beginning in 2018, we are accounting for these investments at their cost minus impairments, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Prior to 2018, we accounted for our equity investments in privately held companies under the cost method of accounting. Our adoption of this guidance did not have an impact on our results. Inventory valuation We capitalize the costs of raw materials that we purchase for use in producing our drugs because until we use these raw materials they have alternative future uses. We include in inventory raw material costs for drugs that we manufacture for our partners under contractual terms and that we use primarily in our clinical development activities and drug products. We can use each of our raw materials in multiple products and, as a result, each raw material has future economic value independent of the development status of any single drug. For example, if one of our drugs failed, we could use the raw materials for that drug to manufacture our other drugs. We expense these costs when we begin to manufacture API for a particular drug. We reflect our inventory on the balance sheet at the lower of cost or market value under the first-in, first-out method, or FIFO. We review inventory periodically and reduce the carrying value of items we consider to be slow moving or obsolete to their estimated net realizable value. We consider several factors in estimating the net realizable value, including shelf life of raw materials, alternative uses for our drugs and clinical trial materials, and historical write-offs. We did not record any inventory write-offs for the three months ended March 31, 2018 and 2017. Total inventory was $9.1 million and $10.0 million as of March 31, 2018 and December 31, 2017, respectively. Research, development and patent expenses Our research and development expenses include wages, benefits, facilities, supplies, external services, clinical trial and manufacturing costs and other expenses that are directly related to our research and development operations. We expense research and development costs as we incur them. When we make payments for research and development services prior to the services being rendered, we record those amounts as prepaid assets on our consolidated balance sheet and we expense them as the services are provided. We capitalize costs consisting principally of outside legal costs and filing fees related to obtaining patents. We amortize patent costs over the useful life of the patent, beginning with the date the United States Patent and Trademark Office, or foreign equivalent, issues the patent. We review our capitalized patent costs regularly to ensure that they include costs for patents and patent applications that have future value. We evaluate patents and patent applications that we are not actively pursuing and write off any associated costs. Long-lived assets We evaluate long-lived assets, which include property, plant and equipment and patent costs acquired from third parties, for impairment on at least a quarterly basis and whenever events or changes in circumstances indicate that we may not be able to recover the carrying amount of such assets. Use of estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Basic and diluted net income (loss) per share We compute basic net income (loss) per share by dividing the total net income (loss) attributable to our common stockholders by our weighted-average number of common shares outstanding during the period. The calculation of total net income (loss) attributable to our common stockholders for the three months ended March 31, 2018 considered our net income for Ionis on a stand-alone basis plus our share of Akcea’s net loss for the period. To calculate the portion of Akcea’s net loss attributable to our ownership, we multiplied Akcea’s loss per share by the weighted average shares we owned in Akcea during the period. Our basic net loss per share for the three months ended March 31, 2018 Three months ended March 31, 2018 Weighted Average Shares Owned in Akcea Akcea’s Net Income (Loss) Per Share Ionis’ Portion of Akcea’s Net Loss Common shares 45,448 $ (0.44 ) $ (19,997 ) Akcea’s net loss attributable to our ownership $ (19,997 ) Ionis’ stand-alone net income 18,785 Net loss available to Ionis common stockholders $ (1,212 ) Weighted average shares outstanding 125,330 Basic net loss per share $ (0.01 ) For the three months ended March 31, 2017, we owned 100 percent of Akcea. As a result, we did not have to adjust our earnings per share calculation. For the three months ended March 31, 2017, we had net income. As a result, we computed diluted net income per share using the weighted-average number of common shares and dilutive common equivalent shares outstanding during those periods. Diluted common equivalent shares for the three months ended March 31, 2017 consisted of the following (in thousands except per share amounts): Three months ended March 31, 2017 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 8,964 122,861 $ 0.07 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,674 Shares issuable upon restricted stock award issuance — 377 Shares issuable related to our ESPP — 60 Income available to Ionis common stockholders $ 8,964 124,972 $ 0.07 For the three months ended March 31, 2017, the calculation excluded the 1 percent and 2¾ percent notes because the effect on diluted earnings per share was anti-dilutive. Accumulated other comprehensive loss Accumulated other comprehensive loss is primarily comprised of unrealized gains and losses on investments, net of taxes and adjustments we made to reclassify realized gains and losses on investments from other accumulated comprehensive income (loss) to our condensed consolidated statement of operations. The following table summarizes changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2018 and 2017 (in thousands): Three Months Ended March 31, 2018 2017 Beginning balance accumulated other comprehensive loss $ (31,759 ) $ (30,358 ) Unrealized gains (losses) on securities, net of tax (1) (1,530 ) 266 Amounts reclassified from accumulated other comprehensive income (2) — (374 ) Currency translation adjustment 55 6 Net current period other comprehensive loss (1,475 ) (102 ) Ending balance accumulated other comprehensive loss $ (33,234 ) $ (30,460 ) (1) There was no tax benefit for other comprehensive loss for the three months ended March 31, 2018 and 2017. (2) Amounts are included in investment income on our condensed consolidated statement of operations. Convertible debt We account for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) by separating the liability and equity components of the instruments in a manner that reflects our nonconvertible debt borrowing rate. We determine the carrying amount of the liability component by measuring the fair value of similar debt instruments that do not have the conversion feature. If no similar debt instrument exists, we estimate fair value by using assumptions that market participants would use in pricing a debt instrument, including market interest rates, credit standing, yield curves and volatilities. Determining the fair value of the debt component requires the use of accounting estimates and assumptions. These estimates and assumptions are judgmental in nature and could have a significant impact on the determination of the debt component, and the associated non-cash interest expense. We assigned a value to the debt component of our convertible notes equal to the estimated fair value of similar debt instruments without the conversion feature, which resulted in us recording our debt at a discount. We are amortizing our debt issuance costs and debt discount over the life of the convertible notes as additional non-cash interest expense utilizing the effective interest method. Segment information We have two operating segments, our Ionis Core segment and Akcea Therapeutics. Akcea is . We provide segment financial information and results for our Ionis Core segment and our Akcea Therapeutics segment based on the segregation of revenues and expenses that our chief decision maker reviews to assess operating performance and to make operating decisions. We allocate a portion of Ionis’ development, R&D support expenses and general and administrative expenses to Akcea for work we performed on behalf of Akcea. Stock-based compensation expense We measure stock-based compensation expense for equity-classified awards, principally related to stock options, restricted stock units, or RSUs, and stock purchase rights under our ESPP, based on the estimated fair value of the award on the date of grant. We recognize the value of the portion of the award that we ultimately expect to vest as stock-based compensation expense over the requisite service period in our condensed consolidated statements of operations. We reduce stock-based compensation expense for estimated forfeitures at the time of grant and revise in subsequent periods if actual forfeitures differ from those estimates. We use the Black-Scholes model to estimate the fair value of stock options granted and stock purchase rights under our ESPP. The expected term of stock options granted represents the period of time that we expect them to be outstanding. We estimate the expected term of options granted based on historical exercise patterns. For the three months ended March 31, 2018 and 2017, we used the following weighted-average assumptions in our Blac |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Investments | 3. Investments As of March 31, 2018, we had invested our excess cash primarily in debt instruments of the U.S. Treasury, financial institutions, corporations, and U.S. government agencies with strong credit ratings and an investment grade rating at or above A-1, P-1 or F-1 by Moody’s, Standard & Poor’s, or S&P, or Fitch, respectively. We have established guidelines relative to diversification and maturities that maintain safety and liquidity. We periodically review and modify these guidelines to maximize trends in yields and interest rates without compromising safety and liquidity. The following table summarizes the contract maturity of the available-for-sale securities we held as of March 31, 2018: One year or less 77% After one year but within two years 18% After two years but within three and a half years 5% Total 100% As illustrated above, at March 31, 2018, 95 percent of our available-for-sale securities had a maturity of less than two years. All of our available-for-sale securities are available to us for use in our current operations. As a result, we categorize all of these securities as current assets even though the stated maturity of some individual securities may be one year or more beyond the balance sheet date. At March 31, 2018, we had an ownership interest of less than 20 percent in five private companies and one public company with which we conduct business. The privately-held companies are Atlantic Pharmaceuticals Limited, Dynacure SAS, Kastle Therapeutics, Seventh Sense Biosystems and Suzhou Ribo Life Science CO. The publicly-traded company is Antisense Therapeutics Limited. The following is a summary of our investments (in thousands): Gross Unrealized March 31, 2018 Cost Gains Losses Estimated Fair Value Available-for-sale securities: Corporate debt securities (2) $ 433,297 $ 1 $ (1,286 ) $ 432,012 Debt securities issued by U.S. government agencies 129,235 — (323 ) 128,912 Debt securities issued by the U.S. Treasury (2) 54,076 1 (43 ) 54,034 Debt securities issued by states of the U.S. and political subdivisions of the states (2) 31,624 1 (194 ) 31,431 Total securities with a maturity of one year or less 648,232 3 (1,846 ) 646,389 Corporate debt securities 126,128 5 (1,807 ) 124,326 Debt securities issued by U.S. government agencies 21,547 — (162 ) 21,385 Debt securities issued by states of the U.S. and political subdivisions of the states 52,746 — (785 ) 51,961 Total securities with a maturity of more than one year 200,421 5 (2,754 ) 197,672 Total available-for-sale securities $ 848,653 $ 8 $ (4,600 ) $ 844,061 Gross Unrealized December 31, 2017 Cost Gains Losses Estimated Fair Value Available-for-sale securities: Corporate debt securities $ 500,599 $ 2 $ (752 ) $ 499,849 Debt securities issued by U.S. government agencies 83,926 — (212 ) 83,714 Debt securities issued by the U.S. Treasury 29,428 — (17 ) 29,411 Debt securities issued by states of the U.S. and political subdivisions of the states (2) 29,240 4 (122 ) 29,122 Total securities with a maturity of one year or less 643,193 6 (1,103 ) 642,096 Corporate debt securities 148,663 8 (1,059 ) 147,612 Debt securities issued by U.S. government agencies 52,779 — (168 ) 52,611 Debt securities issued by the U.S. Treasury 1,409 — (2 ) 1,407 Debt securities issued by states of the U.S. and political subdivisions of the states 65,550 — (740 ) 64,810 Total securities with a maturity of more than one year 268,401 8 (1,969 ) 266,440 Total available-for-sale securities $ 911,594 $ 14 $ (3,072 ) $ 908,536 (1) Our available-for-sale securities are held at amortized cost. (2) Includes investments classified as cash equivalents on our condensed consolidated balance sheet. Investments we consider to be temporarily impaired at March 31, 2018 were as follows (in thousands): Less than 12 Months of Temporary Impairment More than 12 Months of Temporary Impairment Total Temporary Impairment Number of Investments Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Corporate debt securities 420 $ 470,960 $ (2,308 ) $ 71,370 $ (785 ) $ 542,330 $ (3,093 ) Debt securities issued by U.S. government agencies 52 124,729 (397 ) 25,569 (88 ) 150,298 (485 ) Debt securities issued by the U.S. Treasury 7 32,329 (43 ) — — 32,329 (43 ) Debt securities issued by states of the U.S. and political subdivisions of the states 50 48,477 (588 ) 32,145 (391 ) 80,622 (979 ) Total temporarily impaired securities 529 $ 676,495 $ (3,336 ) $ 129,084 $ (1,264 ) $ 805,579 $ (4,600 ) We believe that the decline in value of these securities is temporary and is primarily related to the change in market interest rates since purchase. We believe it is more likely than not that we will be able to hold our debt securities to maturity. Therefore, we anticipate full recovery of our debt securities’ amortized cost basis at maturity. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements We use a three-tier fair value hierarchy to prioritize the inputs used in our fair value measurements. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets, which includes our money market funds and treasury securities classified as available-for-sale securities and our investment in equity securities in publicly-held biotechnology companies; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable, which includes our fixed income securities and commercial paper classified as available-for-sale securities; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring us to develop our own assumptions. We classify the majority of our securities as Level 2. We obtain the fair value of our Level 2 investments from our custodian bank or from a professional pricing service. We validate the fair value of our Level 2 investments by understanding the pricing model used by the custodian banks or professional pricing service provider and comparing that fair value to the fair value based on observable market prices. During the three months ended March 31, 2018, there were no transfers between our Level 1 and Level 2 investments. When we recognize transfers between levels of the fair value hierarchy, we recognize the transfer on the date the event or change in circumstances that caused the transfer occurs. The following tables present the major security types we held at March 31, 2018 and December 31, 2017 that are regularly measured and carried at fair value. The tables segregate each security type by the level within the fair value hierarchy of the valuation techniques we utilized to determine the respective securities’ fair value (in thousands): At March 31, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Cash equivalents (1) $ 138,350 $ 138,350 $ — Corporate debt securities (2) 556,338 — 556,338 Debt securities issued by U.S. government agencies (3) 150,297 — 150,297 Debt securities issued by the U.S. Treasury (3) 54,034 54,034 — Debt securities issued by states of the U.S. and political subdivisions of the states (3) 83,392 — 83,392 Total $ 982,411 $ 192,384 $ 790,027 At December 31, 2017 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Cash equivalents (1) $ 86,262 $ 86,262 $ — Corporate debt securities (3) 647,461 — 647,461 Debt securities issued by U.S. government agencies (3) 136,325 — 136,325 Debt securities issued by the U.S. Treasury (3) 30,818 30,818 — Debt securities issued by states of the U.S. and political subdivisions of the states (4) 93,932 — 93,932 Total $ 994,798 $ 117,080 $ 877,718 (1) Included in cash and cash equivalents on our condensed consolidated balance sheet. (2) At March 31, 2018, $14.6 million was included in cash and cash equivalents on our condensed consolidated balance sheet, with the difference included in short-term investments on our condensed consolidated balance sheet. (3) Included in short-term investments on our condensed consolidated balance sheet. (4) At December 31, 2017, $3.5 million was included in cash and cash equivalents on our condensed consolidated balance sheet, with the difference included in short-term investments on our condensed consolidated balance sheet. Other Fair Value Disclosures Novartis Future Stock Purchase In January 2017, we and Akcea entered into a SPA with Novartis. As part of the SPA, Novartis was required to purchase $50 million of Akcea’s common stock at the IPO price or our common stock at a premium if an IPO did not occur by April 2018. Therefore, at the inception of the SPA, we recorded a $5.0 million asset representing the fair value of the potential future premium we could have received if Novartis purchased our common stock. We determined the fair value of the future premium by calculating the value based on the stated premium in the SPA and estimating the probability of an Akcea IPO. We also included a lack of marketability discount when we determined the fair value of the premium because we would have issued unregistered shares to Novartis if they had purchased our common stock. We measured this asset using Level 3 inputs and recorded it in other assets on our consolidated balance sheet. Because Akcea completed its IPO before April 2018, Novartis will not purchase additional shares of Ionis stock. Therefore, this asset no longer had any value and we wrote-off the remaining balance to other expenses in the third quarter of 2017. The following is a reconciliation of the potential premium we would have received if Akcea had not completed its IPO, measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2017 (in thousands): Beginning balance of Level 3 instruments at January 1, 2017 $ — Value of the potential premium we would have received from Novartis at inception of the SPA (January 2017) 5,035 Recurring fair value adjustment during the three months ended March 31, 2017 (1,438 ) Ending balance of Level 3 instruments at March 31, 2017 $ 3,597 At March 31, 2018 and December 31, 2017, we did not have any financial instruments that were valued using Level 3 inputs. Convertible Notes Our 1 percent notes had a fair value of $729.1 million at March 31, 2018. We determine the fair value of our notes based on quoted market prices for these notes, which are Level 2 measurements because the notes do not trade regularly. |
Long-Term Obligations
Long-Term Obligations | 3 Months Ended |
Mar. 31, 2018 | |
Long-Term Obligations [Abstract] | |
Long-Term Obligations | 5. Long-Term Obligations Line of Credit Arrangement In June 2015, we entered into a five-year revolving line of credit agreement with Morgan Stanley Private Bank, National Association, or Morgan Stanley. We amended the credit agreement in February 2016 to increase the amount available for us to borrow. Under the amended credit agreement, we can borrow up to a maximum of $30 million of revolving credit for general working capital purposes. Under the credit agreement interest is payable monthly in arrears on the outstanding principal at a borrowing rate based on our option of: (i) a floating rate equal to the one-month London Interbank Offered Rate, or LIBOR, in effect plus 1.25 percent per annum; (ii) a fixed rate equal to LIBOR plus 1.25 percent for a period of one, two, three, four, six, or twelve months as elected by us; or (iii) a fixed rate equal to the LIBOR swap rate during the period of the loan. Additionally, we pay 0.25 percent per annum, payable quarterly in arrears, for any amount unused under the credit facility. As of March 31, 2018 we had $12.5 million in outstanding borrowings under the credit facility with a 2.31 percent fixed interest rate and a maturity date of September 2019, which we used to fund our capital equipment needs consistent with our historical practice to finance these costs. The credit agreement includes customary affirmative and negative covenants and restrictions. We are in compliance with all covenants of the credit agreement. Research and Development and Manufacturing Facilities In July 2017, we purchased the building that houses our primary R&D facility for $79.4 million. We also purchased our manufacturing facility in July 2017 for $14.0 million. We financed the purchase of our primary R&D facility and our manufacturing facility, with mortgage debt of $51.3 million and $9.1 million, respectively. Our primary R&D facility mortgage has an interest rate of 3.88 percent. Our manufacturing facility has an interest rate of 4.20 percent. During the first five years of both mortgages, we are only required to make interest payments. Both mortgages mature in August 2027. |
Collaborative Arrangements and
Collaborative Arrangements and Licensing Agreements | 3 Months Ended |
Mar. 31, 2018 | |
Collaborative Arrangements and Licensing Agreements [Abstract] | |
Collaborative Arrangements and Licensing Agreements | 6. Collaborative Arrangements and Licensing Agreements Below, we have included all of our significant collaborations because we adopted Topic 606 on January 1, 2018. We have included new disclosures for each of our collaborations as required under Topic 606. Strategic Partnerships AstraZeneca Cardiac, Renal and Metabolic Diseases Collaboration In July 2015, we and AstraZeneca formed a strategic collaboration to discover and develop antisense therapies for treating cardiac, renal and metabolic diseases. Under our collaboration AstraZeneca has licensed three drugs from us. As part of the agreement, we granted AstraZeneca an exclusive license to IONIS-AZ4-2.5-L Rx , a drug we designed to treat cardiovascular disease and our first LIgand-Conjugated Antisense, or LICA, technology. We also granted AstraZeneca the option to license a drug for each additional target advanced under this research collaboration. In February 2018, AstraZeneca licensed a second drug under our collaboration, IONIS-AZ5-2.5 Rx , a drug we designed to . In March 2018, AstraZeneca licensed a third drug under our collaboration, IONIS-AZ6-2.5-L Rx , a drug we designed to . AstraZeneca is responsible for all further global development, regulatory and commercialization activities and costs for IONIS-AZ4-2.5-L Rx , IONIS-AZ5-2.5 Rx and IONIS-AZ6-2.5-L Rx and any other future drug development candidates AstraZeneca licenses. Under the terms of the agreement, we received a $65 million upfront payment. We are eligible to receive license fees and milestone payments of up to more than $4 billion as drugs under this collaboration advance, including up to $1.1 billion for the achievement of development milestones and up to $2.9 billion for regulatory milestones. In addition, we are eligible to receive tiered royalties up to the low teens on sales from any product that AstraZeneca successfully commercializes under this collaboration agreement. From inception through March 2018, we have received over $124 million in upfront fees, license fees, milestone payments, and other payments under this cardiac, renal and metabolic diseases collaboration. We will achieve the next payment of $10 million under this collaboration if we advance a drug under this collaboration . At commencement of our collaboration, we identified one performance obligation, which was to perform R&D services for AstraZeneca. We determined the transaction price to be the $65 million upfront payment we received and we allocated it to our single performance obligation. We are recognizing revenue for our R&D services performance obligation over our period of performance, estimated through August 2021 March 2018 We identified separate performance obligations upon AstraZeneca’s license of IONIS-AZ5-2.5 Rx Rx Oncology Collaboration In December 2012, we entered into a collaboration agreement with AstraZeneca to discover and develop antisense drugs to treat cancer. As part of the agreement, we granted AstraZeneca an exclusive license to develop and commercialize IONIS-STAT3-2.5 Rx ) for the treatment of cancer. AstraZeneca is now responsible for all global development, regulatory and commercialization activities for . We and AstraZeneca have evaluated in people with head and neck cancer, advanced lymphoma and advanced metastatic hepatocellular carcinoma. AstraZeneca is evaluating in combination with Imfinzi (durvalumab), AstraZeneca’s programmed death ligand, or PD-L1, blocking drug, in people with head and neck cancer, advanced lymphoma, metastatic bladder cancer and metastatic non-small cell lung cancer. In additional to danvatirsen, we and AstraZeneca established an oncology research program. AstraZeneca has the option to license drugs resulting from the program, and if AstraZeneca exercises its option for a drug, it will be responsible for all further global development, regulatory and commercialization activities and costs for such drug. The first development candidate identified under the anti-cancer research program was IONIS-KRAS-2.5 Rx , which AstraZeneca licensed from us in December 2016. IONIS-KRAS-2.5 Rx is a Generation 2.5 antisense drug we designed to directly target KRAS, one of the most frequently mutated genes in cancer. Under the terms of the agreement, we received $31 million in upfront payments. We are eligible to receive milestone payments and license fees from AstraZeneca as programs advance in development. If AstraZeneca successfully develops , IONIS-KRAS-2.5 Rx and another drug under the research program, we could receive license fees and milestone payments of up to more than $750 million, including up to $226 million for the achievement of development milestones and up to $485 million for the achievement of regulatory milestones. In addition, we are eligible to receive tiered royalties up to the low to mid-teens on sales from any drugs resulting from these programs. From inception through March 2018, we have received $97.8 million in upfront fees, milestone payments, and other payments under this oncology collaboration. We will achieve the next payment of up to $17.5 million if we advance a drug under our cancer research program with AstraZeneca. At commencement of our collaboration, we identified four performance obligations. We determined the transaction price to be the $31 million in upfront payments we received. We allocated the transaction price based on the estimated stand-alone selling price of each of our performance obligations and recognized the associated revenue over the period of our performance. We recognized revenue for three of our obligations over our period of performance, concluding in March 2014. Our remaining performance obligation was to perform R&D services. We allocated $7.6 million to this performance obligation and recognized the associated revenue over the period of our performance, which ended in February 2018. As we achieved milestone payments for our R&D services, we included these amounts in our transaction price for our R&D services performance obligation. We identified another performance obligation upon AstraZeneca’s license of IONIS-KRAS-2.5 Rx Rx During the three months ended March 31, 2018 and 2017, we earned R&D revenue of $68.4 million and $4.9 million, respectively, from our relationship with AstraZeneca, which represented 47 percent and 4 percent, respectively, of our total revenue for those periods. Our balance sheets at March 31, 2018 and December 31, 2017 included deferred revenue of $51.3 million and $57.7 million, respectively, related to our relationship with AstraZeneca. Biogen We have several strategic collaborations with Biogen focused on using antisense technology to advance the treatment of neurological disorders. These collaborations combine our expertise in creating antisense drugs with Biogen's expertise in developing therapies for neurological disorders. We developed and licensed to Biogen SPINRAZA, our approved drug to treat people with spinal muscular atrophy, or SMA. In new antisense drugs for the treatment of SMA Additionally, we and Biogen are currently developing six other drugs to treat neurodegenerative diseases under these collaborations, including IONIS-SOD1 Rx for ALS, IONIS-MAPT Rx for Alzheimer’s disease , IONIS-C9 Rx for ALS, and IONIS-BIIB6 Rx , IONIS-BIIB7 Rx and IONIS-BIIB8 Rx to treat undisclosed neurodegenerative diseases. In addition to these drugs, we and Biogen are evaluating numerous additional targets to develop drugs to treat neurological diseases. Most recently, in April 2018 we entered into a new strategic collaboration for the treatment of neurological diseases with Biogen. From inception through March 2018, we have received over $800 million from our Biogen collaborations. In April 2018, we and Biogen expanded our strategic collaboration to develop novel antisense drugs or a broad range of neurological diseases. We will receive $1 billion from Biogen, comprised of $ million to purchase our stock at a 25 percent cash premium and $ million in an upfront payment, upon receiving clearance under the Hart-Scott Rodino Antitrust Improvements Act. SPINRAZA In January 2012, we entered into a collaboration agreement with Biogen to develop and commercialize SPINRAZA, an RNA-targeted therapy for the treatment of SMA. In December 2016, the FDA approved SPINRAZA for the treatment of SMA in pediatric and adult patients. From inception through March 2018, we earned $155 million in revenue from SPINRAZA royalties. In addition to SPINRAZA royalties, from inception through March 2018, we have received $436 million in payments for advancing SPINRAZA. We are receiving tiered royalties up to the mid-teens on any sales of SPINRAZA. We have exclusively in-licensed patents related to SPINRAZA from Cold Spring Harbor Laboratory and the University of Massachusetts. We pay Cold Spring Harbor Laboratory and the University of Massachusetts a low single digit royalty on sales of SPINRAZA. Biogen is responsible for all further global development, regulatory and commercialization activities and costs for SPINRAZA. Over the course of our SPINRAZA collaboration, we identified two performance obligations, which were to perform R&D services and to deliver the SPINRAZA license to Biogen. As we achieved milestone payments for our R&D services, we included these amounts in our transaction price for our R&D services performance obligation. We recognized revenue for our R&D services performance obligation over our period of performance through December 2016. We recognized the $75 million license fee for SPINRAZA as revenue when we delivered the license to Biogen in July 2016 because Biogen had full use of the license without any continuing involvement from us. Additionally, we did not have any further performance obligations related to the license after we delivered it to Biogen. We also earned additional milestone payments that we recognized in full in the period the milestone payment became probable because we did not have a performance obligation related to the milestone payment. For example, we received $90 million of milestone payments for the approval of SPINRAZA in the EU and Japan in 2017 and recognized the full amounts into revenue in the period Biogen achieved the milestone events. Neurology In December 2012, we and Biogen entered into a collaboration agreement to develop and commercialize novel antisense drugs to up to three targets to treat neurodegenerative diseases. We are responsible for the development of each of the drugs through the completion of the initial Phase 2 clinical study for such drug. Biogen has the option to license a drug from each of the three programs through the completion of the first Phase 2 study for each program. We are currently advancing IONIS-MAPT Rx Under the terms of the agreement, we received an upfront payment of $30 million. Over the term of the collaboration, we are eligible to receive up to $210 million in a license fee and milestone payments per program, plus a mark-up on the cost estimate of the Phase 1 and 2 studies. The $210 million per program consists of up to $10 million in development milestone payments, plus a mark-up on the cost estimate of the Phase 1 and 2 studies and up to $130 million in milestone payments if Biogen achieves pre-specified regulatory milestones. In addition, we are eligible to receive tiered royalties up to the mid-teens on sales of any drugs resulting from each of the three programs. From inception through March 2018, we have received $58 million in milestone payments and upfront fees under this collaboration. We will achieve the next payment of $7.5 Rx At commencement of our neurology collaboration, we identified one performance obligation, which was to perform R&D services for Biogen. At inception, we determined the transaction price to be the $30 million upfront payment we received and allocated it to our single performance obligation. As we achieve milestone payments for our R&D services, we include these amounts in our transaction price for our R&D services performance obligation. We are recognizing revenue over our period of performance, estimated through December 2020. From inception through March 2018 Strategic Neurology In September 2013, we and Biogen entered into a long-term strategic relationship focused on applying antisense technology to advance the treatment of neurodegenerative diseases. As part of the collaboration, Biogen gained exclusive rights to the use of our antisense technology to develop therapies for neurological diseases and has the option to license drugs resulting from this collaboration. The exclusivity for neurological diseases will last through March 2019, and may be extended for any drug development programs Biogen is pursuing under the collaboration. We will usually be responsible for drug discovery and early development of antisense drugs and Biogen will have the option to license antisense drugs after Phase 2 proof of concept. In October 2016, we expanded our collaboration to include additional research activities we will perform. If Biogen exercises its option for a drug, it will assume all further global development, regulatory and commercialization responsibilities and costs for that drug. We are currently advancing five drugs, IONIS-SOD1 Rx Rx Rx Rx Rx Under the terms of the agreement, we received an upfront payment of $100 million and are eligible to receive milestone payments, license fees and royalty payments for all drugs developed through this collaboration, with the specific amounts dependent upon the modality of the molecule advanced by Biogen. For each antisense molecule that is chosen for drug discovery and development under this collaboration, we are eligible to receive up to approximately $260 million in a license fee and milestone payments per program. The $260 million per program consists of approximately $60 million in development milestones, including amounts related to the cost of clinical trials, and up to $130 million in milestone payments if Biogen achieves pre-specified regulatory milestones. In addition, we are eligible to receive tiered royalties up to the mid-teens on sales from any antisense drugs developed under this collaboration. If other modalities are chosen, such as small molecules or monoclonal antibodies, we are eligible to receive up to $90 million in milestone payments per program. The $90 million per program consists of up to $35 million in development milestone payments and up to $55 million in milestone payments if Biogen achieves pre-specified regulatory milestones. In addition, we are eligible to receive tiered single-digit royalties on sales from any drugs using non-antisense modalities developed under this collaboration. From inception through March 2018, we have received over $165 million in upfront fees, milestone payments and other payments under this collaboration, including $15 million in milestone payments we received in 2017 for . We will achieve the next payment of up to $10 million if we advance a program under this collaboration. At commencement of our strategic neurology collaboration, we identified one performance obligation, which was to perform R&D services for Biogen. At inception, we determined the transaction price to be the $100 million upfront payment we received and allocated it to our single performance obligation. As we achieve milestone payments for our R&D services, we include these amounts in our transaction price for our R&D services performance obligation. We are recognizing revenue over our period of performance, estimated through March 2019. From inception through March 2018 New antisense drugs for the treatment of SMA In December 2017, we entered into a collaboration agreement with Biogen to new antisense drugs for the treatment of SMA . Biogen will have the option to license therapies arising out of this collaboration following the completion of preclinical studies. Upon licensing, Biogen will be responsible for all further global development, regulatory and commercialization activities and costs for such therapies . Under the collaboration agreement, we received a upfront payment in December 2017. We will receive development and regulatory milestone payments from Biogen if new drugs advance towards marketing approval. In total over the term of our collaboration, we are eligible to receive up to $1.2 billion in license fees, milestone payments and other payments, including up to $80 million for the achievement of development milestones, up to $180 million for the achievement of commercialization milestones and up to $800 million for the achievement of sales milestones. In addition, we are eligible to receive tiered royalties from the mid-teens to mid-20 percent range on net sales. We will achieve the next payment of up to $60 million for the license of a drug under this collaboration. At commencement of our collaboration, we identified one performance obligation, which was to perform R&D services for Biogen. We determined the transaction price to be the $25 million upfront payment we received when we entered into the collaboration. We allocated the transaction price to our single performance obligation. We are recognizing revenue over our period of performance, estimated through December 2020. Expanded Strategic Neurology Collaboration In April 2018, we and Biogen expanded our strategic collaboration to develop novel antisense drug candidates for a broad range of neurological diseases. As part of the collaboration, Biogen gained exclusive rights to the use of our antisense technology to develop therapies for these diseases for 10 years. The key terms of the collaboration are as follows: ● We will receive ● We are eligible to receive significant milestone payments and license fees of up to $270 million for each successful drug, plus royalties up to 20 percent on global net sales ; ● Biogen will assume responsibility for development and commercialization activities and costs once we identify a drug for development; Our expanded collaboration is subject to customary closing conditions and clearances, including clearance under the Hart-Scott Rodino Antitrust Improvements Act. During the three months ended March 31, 2018, we earned revenue of $51.9 million from our relationship with Biogen, comprised of $41.1 million in royalties on sales of SPINRAZA and $10.8 million in R&D revenue. December 31, 2017 Research, Development and Commercialization Partners Bayer In May 2015, we entered into an exclusive license agreement with Bayer to develop and commercialize IONIS-FXI Rx Rx Rx Rx Rx Rx We are eligible to receive additional milestone payments as each drug advances toward the market. In total over the term of our collaboration, we are eligible to receive up to $385 million in license fees, milestone payments and other payments, including up to $125 million for the achievement of development milestones and up to $110 million for the achievement of commercialization milestones. In addition, we are eligible to receive tiered royalties in the low to high 20 percent range on gross margins of both drugs combined. From inception through March 2018, we have received over $175 million from our Bayer collaboration. We will achieve the next payment of $10 million if a program advances under this collaboration. At commencement of our collaboration, we identified three performance obligations. We determined the transaction price to be the $100 million in upfront payment we received. We allocated the transaction price based on the relative stand-alone selling prices of each of our performance obligations and recognized the associated revenue as follows: ● We recognized $91.2 million for the exclusive license of IONIS-FXI Rx had full use of the license without any continuing involvement from us ● We recognized $4.3 million for the R&D services for IONIS-FXI Rx ● We allocated $4.5 million for API, which we are recognizing into revenue as we deliver the API. In February 2017, when we amended our collaboration with Bayer, we identified two new performance obligations , one for the license of IONIS-FXI-L Rx and one for R&D services the license of IONIS-FXI-L Rx based on its estimated stand-alone selling price and recognized the associated revenue upon our delivery of the license in the first quarter of 2017. We allocated $10.1 million to our R&D services performance obligation based on an estimated stand-alone selling price. During the three months ended March 31, 2018 and 2017, we earned R&D revenue of $0.6 million and $65.2 million, respectively, from our relationship with Bayer. Our revenue from Bayer for the three months ended March 31, 2017 represented 56 percent of our total revenue for that period. December 31, 2017 Janssen Biotech, Inc. In December 2014, we entered into a collaboration agreement with Janssen Biotech, Inc. to discover and develop antisense drugs that can be locally administered, including oral delivery, to treat autoimmune disorders of the gastrointestinal tract. Janssen has the option to license drugs from us through the designation of a development candidate for up to three programs. Prior to option exercise we are responsible for the discovery activities to identify a development candidate. If Janssen exercises an option for one of the programs, it will be responsible for the global development, regulatory and commercial activities under that program. Under the terms of the agreement, we received $35 million in upfront payments. We are eligible to receive up to more than $800 million in license fees and milestone payments for these programs, including up to $175 million for the achievement of development milestones, up to $440 million for the achievement of regulatory milestones and up to $180 million for the achievement of commercialization milestones. From inception through March 2018, we have received $72 million, including $15 million in license fees when Janssen licensed IONIS-JBI1-2.5 Rx Rx 5 Rx At commencement of our collaboration, we identified one performance obligation, which was to perform R&D services for Janssen. We determined the transaction price to be the $35 million upfront payments we received. We allocated the $35 million We identified separate performance obligations each time Janssen licensed one of our drugs under our collaboration because the licenses we granted to Janssen are distinct from our other performance obligation. We recognized the $10 million license fee for IONIS-JBI1-2.5 Rx Rx During the three months ended March 31, 2018 and 2017, we earned R&D revenue of $0.1 million and $2.5 million, respectively, from our relationship with Janssen. Our condensed consolidated balance sheet at March 31, 2018 included deferred revenue of $2.8 million, related to our relationship with Janssen. We did not have any deferred revenue from our relationship with Janssen at December 31, 2017. Novartis In January 2017, we and Akcea initiated a collaboration with Novartis to develop and commercialize AKCEA-APO(a)-L Rx Rx Rx Rx Akcea received a $75 million upfront payment in the first quarter of 2017, of which it retained $60 million and paid us $15 million as a sublicense fee. If Novartis exercises its option for a drug, Novartis will pay Akcea a license fee equal to $150 million for each drug it licenses. In addition, for AKCEA-APO(a)-L Rx Rx Rx Rx Novartis will reduce these royalties upon the expiration of certain patents or if a generic competitor negatively impacts the product in a specific country. Akcea plans to co-commercialize any licensed drug commercialized by Novartis in selected markets under terms and conditions that we plan to negotiate with Novartis in the future, through the specialized sales force we are building to commercialize WAYLIVRA (volanesorsen). In conjunction with this collaboration, we and Akcea entered into a SPA with Novartis. As part of the SPA, Novartis purchased 1.6 million shares of our common stock for $100 million in the first quarter of 2017. As part of the SPA, Novartis was required to purchase $50 million of Akcea’s common stock at the IPO price of our common stock at a premium if an IPO did not occur by April 2018. At commencement of our collaboration, we identified four separate performance obligations: ● R&D services for AKCEA-APO(a)-L Rx ● R&D services for AKCEA-APOCIII-L Rx ● API for AKCEA-APO(a)-L Rx ● API for AKCEA-APOCIII-L Rx We determined that the R&D services for each drug and the API for each drug were distinct from our other performance obligations. We determined our transaction price to be $108.4 million, comprised of the following: ● $75 million from the upfront payment; ● $28.4 million for the premium paid by Novartis for its purchase of our common stock at a premium in the first quarter of 2017; and ● $5.0 million for the potential premium Novartis would have paid if they purchased our common stock in the future. We allocated the transaction price based on the estimated stand-alone selling price of each performance obligation as follows: ● $64.0 million for the R&D services for AKCEA-APO(a)-L Rx ; ● $40.1 million for the R&D services for AKCEA-APOCIII-L Rx ● $1.5 Rx ● $2.8 Rx We are recognizing revenue related to the R&D services for the AKCEA-APO(a)-L Rx and AKCEA-APOCIII-L Rx performance obligations , currently estimated to be through December 2018 and June 2019, respectively. We recognized the amount attributed to the API supply for AKCEA-APOCIII-L Rx when we delivered it to Novartis in 2017. We will recognize the amount attributed to the API supply for AKCEA-APO(a)-L Rx as we deliver it to Novartis. Akcea is responsible for the development activities under this collaboration. As such, Akcea is recognizing the associated revenue in its statement of operations. Akcea pays us sublicense fees for payments that it receives under the collaboration and we recognize those fees as revenue and Akcea recognizes the fees as R&D expense. On a consolidated basis, we eliminate the sublicense fees. During the three months ended March 31, 2018 and 2017, we earned R&D revenue of $17.1 million and $6.1 million from our relationship with Novartis, respectively. Our revenue from Novartis represented 12 percent of our total revenue for the three months ended March 31, 2018. Our condensed consolidated balance sheet at March 31, 2018 and December 31, 2017 included deferred revenue of $56.7 million and $70.7 million, respectively, related to our relationship with Novartis. Roche In April 2013, we formed an alliance with Hoffman-La Roche Inc. and F. Hoffmann-La Roche Ltd., collectively Roche, to develop treatments for Huntington's disease, or HD, based on our antisense technology. Roche had the option to license the drugs from us through the completion of the first Phase 1 trial. Under the agreement, we are responsible for the discovery and development of an antisense drug targeting huntingtin, or HTT, protein. We evaluated a drug targeting HTT, IONIS-HTT Rx In December 2017, upon completion of the Phase 1/2a study, Roche exercised its option to license IONIS-HTT Rx Rx Rx Rx Rx Rx At commencement of our collaboration, we identified one performance obligation, which was to perform R&D services for Roche. We determined the transaction price to be the $30 million upfront payment we received and allocated it to our single performance obligation. As we achieved milestone payments for our R&D services, we included these amounts in our transaction price for our R&D services performance obligation. We recognized revenue for our R&D services performance obligation over our period of performance, through September 2017 We identified a second performance obligation upon Roche’s license of IONIS-HTT Rx Rx We do not have any remaining performance obligations under our collaboration with Roche, however we can still earn additional payments and royalties as Roche advances IONIS-HTT Rx During the three months ended March 31, 2018 we earned R&D revenue of $2.0 million from our relationship with Roche. During the three months ended March 31, 2017, we recorded a reversal of revenue of $1.6 million, related to our updated estimate of our performance period for our R&D services. We did not have any deferred revenue from our relationship with Roche at March 31, 2018 or December 31, 2017. GSK In March 2010, we entered into an alliance with GSK using our antisense drug discovery platform to discover and develop new drugs against targets for rare and serious diseases, including infectious diseases and some conditions causing blindness. Under the terms of the agreement, we received upfront payments of $35 million. GSK is advancing two drugs targeting hepatitis B virus, or HBV, under our collaboration: IONIS-HBV Rx Rx Rx Under our agreement, if GSK successfully develops these drugs and achieves pre-agreed sales targets, we could receive license fees and milestone payments of $262 million, including up to $47.5 million for the achievement of development milestones, up to $120 million for the achievement of regulatory milestones and up to $70 million for the achievement of commercialization milestones. In addition, we are eligible to receive tiered royalties up to the mid-teens on sales from any product that GSK successfully commercializes under this alliance. From inception through March 2018, we have received more than $162 million in payments under this alliance with GSK. We will achieve the next payment of up to $15 million if GSK initiates a Phase 3 study for the HBV program. At commencement of our collaboration, we identified one performance obligation, which was to perform R&D services for GSK. We determined the transaction price to be the $35 million upfront payment we received and allocated it to our single performance obligation. As we achieved milestone payments for our R&D services, we included these amounts in our transaction price for our R&D services performance obligation. We recognized revenue for our R&D services performance obligation over our period of performance, through March 2015. We do not have any remaining performance obligations under our collaboration with GSK, however we can still earn additional payments and royalties as GSK advances these drugs. During the three months ended March 31, 2018 and 2017, we earned R&D revenue of $0.1 million and $6.8 million, respectively, from our relationship with GSK. We did not have any deferred revenue from our relationship with GSK at March 31, 2018 or December 31, 2017. |
Segment Information and Concent
Segment Information and Concentration of Business Risk | 3 Months Ended |
Mar. 31, 2018 | |
Segment Information and Concentration of Business Risk [Abstract] | |
Segment Information and Concentration of Business Risk | 7. Segment Information and Concentration of Business Risk We have two reportable segments Ionis Core and Akcea Therapeutics. In July 2017, Akcea completed an IPO and therefore beginning in July 2017, we no longer own 100 percent of Akcea. As of July 19, 2017, the closing of the IPO and at March 31, 2018, we owned approximately 68 percent of Akcea. Segment income (loss) from operations includes revenue less operating expenses attributable to each segment. In our Ionis Core segment we are exploiting a novel drug discovery platform we created to generate a broad pipeline of first-in-class and/or best-in-class drugs for us and our partners. Our Ionis Core segment generates revenue from a multifaceted partnering strategy. Akcea is . The following table shows our segment revenue and loss from operations for the three months ended March 31, 2018 and March 31, 2017 (as revised) (in thousands), respectively. Three Months Ended March 31, 2018 Ionis Core Akcea Therapeutics Elimination of Intercompany Activity Total Revenue: Commercial revenue: SPINRAZA royalties $ 41,081 $ — $ — $ 41,081 Licensing and other royalty revenue 942 — — 942 Total commercial revenue $ 42,023 $ — $ — $ 42,023 R&D revenue under collaborative agreements $ 90,517 $ 17,108 $ (5,229 ) $ 102,396 Total segment revenue $ 132,540 $ 17,108 $ (5,229 ) $ 144,419 Total operating expenses $ 105,544 $ 47,435 $ (5,259 ) $ 147,720 Income (loss) from operations $ 26,996 $ (30,327 ) $ 30 $ (3,301 ) Three Months Ended March 31, 2017 (as revised) Ionis Core Akcea Therapeutics Elimination of Intercompany Activity Total Revenue: Commercial revenue: SPINRAZA royalties $ 5,211 $ — $ — $ 5,211 Licensing and other royalty revenue 2,590 — — 2,590 Total commercial revenue $ 7,801 $ — $ — $ 7,801 R&D revenue under collaborative agreements $ 153,382 $ 6,094 $ (51,477 ) $ 107,999 Total segment revenue $ 161,183 $ 6,094 $ (51,477 ) $ 115,800 Total operating expense $ 78,352 $ 69,470 $ (51,507 ) $ 96,315 Income (loss) from operations $ 82,831 $ (63,376 ) $ 30 $ 19,485 The following table shows our total assets by segment at March 31, 2018 and December 31, 2017 (as revised) (in thousands), respectively. Total Assets Ionis Core Akcea Therapeutics Elimination of Intercompany Activity Total March 31, 2018 $ 1,349,044 $ 252,466 $ (301,950 ) $ 1,299,560 December 31, 2017 (as revised) $ 1,342,578 $ 268,804 $ (288,608 ) $ 1,322,774 We have historically funded our operations from collaborations with corporate partners and a relatively small number of partners have accounted for a significant percentage of our revenue. Revenue from significant partners, which is defined as ten percent or more of our total revenue, was as follows: Three Months Ended March 31, 2018 2017 (as revised) Partner A 47 % 4 % Partner B 36 % 25 % Partner C 12 % 5 % Partner D 0% 56% Contracts receivables from one significant partner comprised approximately 87 percent of our contracts receivables at March 31, 2018. Contracts receivables from two significant partners comprised approximately 84 percent of our contracts receivables at December 31, 2017. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | We prepared the unaudited interim condensed consolidated financial statements for the three months ended March 31, 2018 and 2017 on the same basis as the audited financial statements for the year ended December 31, 2017. We included all normal recurring adjustments in the financial statements, which we considered necessary for a fair presentation of our financial position at such dates and our operating results and cash flows for those periods. Results for the interim periods are not necessarily indicative of the results for the entire year. For more complete financial information, these financial statements, and notes thereto, should be read in conjunction with the audited financial statements for the year ended December 31, 2017 included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC. |
Consolidation | In the condensed consolidated financial statements we included the accounts of Ionis Pharmaceuticals, Inc. and the consolidated results of our majority-owned subsidiary, Akcea Therapeutics, Inc., which we formed in December 2014. In July 2017, Akcea completed an initial public offering, or IPO. As of July 19, 2017, the closing of the IPO, and at March 31, 2018, we owned approximately 68 percent of Akcea. |
Significant Accounting Polici15
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition Adoption of New Revenue Recognition Accounting Standard (Topic 606) In May 2014, the FASB issued accounting guidance on the recognition of revenue from customers. This guidance supersedes the revenue recognition requirements we previously followed in Accounting Standards Codification, or ASC, Topic 605, Revenue Recognition , or Topic 605, and created a new Topic 606, Revenue from Contracts with Customers , or Topic 606. The following table summarizes the adjustments we were required to make to revenue we originally reported at March 31, 2017 to adopt Topic 606 (in thousands): Three Months Ended March 31, 2017 As Previously Reported under Topic 605 Topic 606 Adjustment As Revised Revenue: Commercial revenue: SPINRAZA royalties $ 5,211 $ — $ 5,211 Licensing and other royalty revenue 3,547 (957 ) 2,590 Total commercial revenue 8,758 (957 ) 7,801 Research and development revenue under collaborative agreements 101,546 6,453 107,999 Total revenue $ 110,304 $ 5,496 $ 115,800 During the first quarter of 2017, our revenue increased $5.5 million under Topic 606, compared to Topic 605. The change in our revenue was primarily due to: ● A change in how we recognize milestone payments: Topic 606 requires us to amortize more of the milestone payments we achieve, rather than recognizing the milestone payments in full in the period in which we achieved the milestone event as we did under Topic 605. This change resulted in a $10.3 million increase in our revenue for the first quarter of 2017. ● A change in how we calculate revenue for payments we are recognizing into revenue over time: Under Topic 605, we amortized payments into revenue evenly over the period of our obligations. Under Topic 606, we are required to use an input method to determine the amount we amortize each reporting period. Each period, we will review our “inputs” such as our level of effort expended or costs incurred relative to the total expected inputs to satisfy the performance obligation. For certain collaborations, such as Novartis and Bayer, the input method resulted in a change to the revenue we had previously recognized using a straight-line amortization method. This change resulted in a $3.8 million decrease in our revenue for the first quarter of 2017. Our updated revenue recognition policy reflecting Topic 606 is as follows: Our Revenue Sources We generally recognize revenue when we have satisfied all contractual obligations and are reasonably assured of collecting the resulting receivable. We are often entitled to bill our customers and receive payment from our customers in advance of recognizing the revenue. In the instances in which we have received payment from our customers in advance of recognizing revenue, we include the amounts in deferred revenue on our condensed consolidated balance sheet. Commercial Revenue: SPINRAZA royalties and Licensing and other royalty revenue We earn commercial revenue primarily in the form of royalty payments on net sales of SPINRAZA. Research and development revenue under collaborative agreements We often enter into collaboration agreements to license and sell our technology on an exclusive or non-exclusive basis in exchange for upfront fees, license fees, milestone payments, royalties and/or profit sharing arrangements. Our collaboration agreements typically contain multiple elements, or performance obligations, including technology licenses or options to obtain technology licenses, research and development, or R&D, services, and in certain cases manufacturing services. Our collaboration agreements are detailed in Note 6, Collaborative Arrangements and Licensing Agreements. Steps to Recognize Revenue We use a five step process to determine the amount of revenue we should recognize and when we should recognize it. The five step process is as follows: 1. Identify the contract Accounting rules require us to first determine if we have a contract with our partner, including confirming that we have met each of the following criteria: ● We and our partner approved the contract and we are both committed to perform our obligations; ● We have identified our rights, our partner’s rights and the payment terms; ● We have concluded that the contract has commercial substance, meaning that the risk, timing, or amount of our future cash flows is expected to change as a result of the contract; and ● We believe collectability is probable. 2. Identify the performance obligations We next identify the distinct goods and services we are required to provide under the contract. Accounting rules refer to these as our performance obligations. We typically have only one performance obligation at the inception of a contract, which is to perform R&D services. Often times when we enter into a collaboration agreement in which we provide our partner with an option to license a drug in the future. We may also provide our partner with an option to request that we provide additional goods or services in the future, such as active pharmaceutical ingredient, or API. We evaluate whether these options are material rights at the inception of the agreement. If we determine an option is a material right, we will consider the option a separate performance obligation. Historically, we have concluded that the options we grant to license a drug in the future or to provide additional goods and services as requested by our partner are not material rights. These items are contingent upon future events that may not occur. When a partner exercises its option to license a drug or requests additional goods or services, then we identify a new performance obligation for that item. Additionally, in some cases, we deliver a license at the start of an agreement. If we determine that our partner has full use of the license and we do not have any additional performance obligations related to the license after delivery, then we consider the license to be a separate performance obligation. 3. Determine the transaction price We then determine the transaction price by reviewing the amount of consideration we are eligible to earn under the collaboration agreement, including any variable consideration. Under our collaboration agreements, consideration typically includes fixed consideration in the form of an upfront payment and variable consideration in the form of potential milestone payments, license fees, royalties or profit share arrangements. At the start of an agreement, our transaction price usually only consists of the upfront payment. We do not typically include any payments we may receive in the future in our initial transaction price because the payments are not probable. We reassess the total transaction price at each reporting period to determine if we should include additional payments in the transaction price. Our most common type of variable consideration are milestone payments. We recognize milestone payments using the most likely amount method because we will either receive the milestone payment or we will not, which makes the potential milestone payment a binary event. The most likely amount method requires us to determine the likelihood of earning the milestone payment. We include a milestone payment in the transaction price once it is probable we will achieve the milestone event. Most often, we do not consider our milestone payments probable until we or our partner achieve the milestone event because the majority of our milestone payments are contingent upon events that are not within our control. 4. Allocate the transaction price Next, we allocate the transaction price to each of our performance obligations. When we have to allocate the transaction price to more than one performance obligation, we make estimates of the relative stand-alone selling price of each performance obligation because we do not typically sell our goods or services on a stand-alone basis. We may engage a third party, independent valuation specialist to assist us with determining a stand-alone selling price for collaborations in which we deliver a license at the start of an agreement. We estimate the stand-alone selling price of these licenses using appropriate valuation methodologies, such as the relief from royalty method. Under this method, we estimate the amount of income, net of taxes, for the license. We then discount the projected income to present value. The significant inputs we use to determine the projected income of a license could include: ● Estimated future product sales; ● Estimated royalties on future product sales; ● Contractual milestone payments; ● Expenses we expect to incur; ● Income taxes; and ● An appropriate discount rate. We typically estimate the selling price of R&D services by using our internal estimates of the cost to perform the specific services and estimates of expected cash outflows to third parties for services and supplies over the expected period that we will perform the R&D services. The significant inputs we use to determine the selling price of our R&D services include: ● The number of internal hours we estimate we will spend performing these services; ● The estimated cost of work we will perform; ● The estimated cost of work that we will contract with third parties to perform; and ● The estimated cost of API we will use. For purposes of determining the stand-alone selling price of the R&D services we perform and the API we will deliver, accounting guidance requires us to include a markup for a reasonable profit margin. We do not reallocate the transaction price after the start of an agreement to reflect subsequent changes in stand-alone selling prices. 5. Recognize revenue We recognize revenue in one of two ways, over time or at a point in time. We recognize revenue over time when we are executing on our performance obligation over time and our partner receives benefit over time. For example, we recognize revenue over time when we provide R&D services. We recognize revenue at a point in time when our partner receives full use of an item at a specific point in time. For example, we recognize revenue at a point in time when we deliver a license or API to a partner. For R&D services that we recognize over time, we measure our progress using an input method. The input methods we use are based on the effort we expend or costs we incur toward the satisfaction of our performance obligation. We estimate the amount of effort we expend or costs we incur in a given period, relative to the estimated total effort or costs to satisfy the performance obligation. This results in a percentage that we multiply by the transaction price to determine the amount of revenue we will recognize each period. The approach requires numerous estimates and significant judgement that if they change over the course of the collaboration, may affect the timing and amount of revenue that we recognize in the current and future periods. During the three months ended March 31, 2017, we recognized $8.2 million of additional revenue related to changes in our estimates. The additional revenue was primarily from our Biogen collaboration for IONIS-DMPK Rx Rx The following are examples of when we typically recognize revenue based on the types of payments we receive. Upfront Payments When we enter into a collaboration agreement with an upfront payment, we typically record the entire upfront payment as deferred revenue if our only performance obligation is for R&D services we will provide in the future. We amortize the upfront payment into revenue as we perform the R&D services. For example, under our new SMA collaboration with Biogen, we received a $25 million upfront payment in December 2017. We allocated the upfront payment to our single performance obligation, R&D services. We are, therefore, amortizing the $25 million upfront payment using an input method over the estimated period of time we are providing R&D services. Refer to Note 6, Collaborative Arrangements and Licensing Agreements Milestone Payments We recognize milestone payments that relate to an ongoing performance obligation over our period of performance. For example, in the third quarter of 2017, we initiated a Phase 1/2a clinical study of IONIS-MAPT Rx Conversely, we recognize in full those milestone payments that we earn based on our partners’ activities when our partner achieves the milestone event. For example, in the second quarter of 2017, we earned a $50 million milestone payment from Biogen for the EU approval of SPINRAZA. Our revenue recognition of milestone payments we earn based on our partners’ activities did not change as a result of adopting Topic 606. License Fees We generally recognize as revenue the total amount we determine to be the stand-alone selling price of a license when we deliver the license to our partner because our partner has full use of the license and we do not have any additional performance obligations related to the license after delivery. Royalties We recognize royalty revenue in the period in which the counterparty sells the related product, which in certain cases may require us to estimate our royalty revenue. Amendments to Agreements From time to time we amend our collaboration agreements. For these agreements, we are required to assess the following items to determine the accounting for the amendment: 1) If the additional goods and/or services are distinct from the other performance obligations in the original agreement; and 2) If the goods and/or services are at a stand-alone selling price. If we conclude the goods and/or services under the amendment are distinct and at a stand-alone selling price, we account for the amendment as a separate agreement. If we conclude the goods and/or services are not distinct under the amendment, we then assess whether the additional goods or services are distinct under the original agreement. If the goods and/ or services are distinct under the original agreement then we allocate the remaining transaction price from the original agreement and the additional transaction price from the amendment to the remaining goods and/or services. If they are not distinct from the original agreement, we update the transaction price for our single performance obligation and recognize any change in our estimated revenue as a cumulative adjustment. For example, in May 2015, we entered into an exclusive license agreement with Bayer to develop and commercialize IONIS-FXI Rx for the prevention of thrombosis. As part of the agreement, Bayer paid us a $100 million upfront payment. At the onset of the agreement, we were responsible for completing a Phase 2 study of IONIS-FXI Rx in people with end-stage renal disease on hemodialysis and for providing an initial supply of API. In February 2017, we amended our agreement with Bayer to advance IONIS-FXI Rx and to initiate development of IONIS-FXI-L Rx , which Bayer licensed. As part of the 2017 amendment, Bayer paid us $75 million. We are also eligible to receive milestone payments and tiered royalties on gross margins of IONIS-FXI Rx and IONIS-FXI-L Rx . Under the 2017 amendment, we concluded we had a new agreement with three performance obligations. These performance obligations were to deliver the license of IONIS-FXI-L Rx , to provide R&D services and to deliver API. We allocated the $75 million transaction price to the performance obligations. Note 6, Collaborative Arrangements and Licensing Agreements of our accounting treatment for our Bayer collaboration. Multiple Agreements From time to time, we may enter into separate agreements at or near the same time with the same partner. We evaluate such agreements to determine whether we should account for them individually as distinct arrangements or whether the separate agreements should be combined and accounted for together. We evaluate the following to determine the accounting for the agreements: Whether the agreements are negotiated together with a single objective; Whether the amount of consideration in one contract depends on the price or performance of the other agreement; or Whether the goods and/or services promised under the agreements are a single performance obligation. Our evaluation involves significant judgment to determine whether a group of agreements might be so closely related that we are required to account for them as a combined arrangement. For example, in the first quarter of 2017, we and Akcea entered into two separate agreements with Novartis at the same time: a collaboration agreement and a stock purchase agreement, or SPA. We evaluated the Novartis agreements to determine whether we should treat the agreements separately or combine them. We considered that the agreements were negotiated concurrently and in contemplation of one another. Based on these facts and circumstances, we concluded that we should evaluate the provisions of the agreements on a combined basis. Refer to Note 6, Collaborative Arrangements and Licensing Agreements for further discussion of the accounting treatment for the Novartis collaboration. Contracts Receivable Our contracts receivable balance represents the amounts we have billed our partners for goods we have delivered or services we have performed that are due to us unconditionally. When we bill our partners with payment terms based on the passage of time, we consider the contract receivable to be unconditional. We typically receive payment within one quarter of billing our partner Unbilled SPINRAZA Royalties Our unbilled SPINRAZA royalties represent our right to receive consideration from Biogen in advance of when we are eligible to bill Biogen for SPINRAZA royalties. We include these unbilled amounts in other current assets on our condensed consolidated balance sheet. Deferred Revenue We are often entitled to bill our customers and receive payment from our customers in advance of our obligation to provide services or transfer goods to our partners. In the instances in which we have billed our customers or received payment from our customers in advance of satisfying our performance obligation, we include the amounts in deferred revenue on our condensed consolidated balance sheet. The following table summarizes the adjustments we were required to make to our deferred revenue amounts to adopt Topic 606 (in thousands): At December 31, 2017 As Previously Reported under Topic 605 Topic 606 Adjustment As Revised Current portion of deferred revenue $ 106,465 $ 18,871 $ 125,336 Long-term portion of deferred revenue 72,708 35,318 108,026 Total $ 179,173 $ 54,189 $ 233,362 Our deferred revenue balance increased $54.2 million at December 31, 2017 under Topic 606, compared to Topic 605. The increase was primarily related to the change in the accounting for certain milestone payments and the way in which we amortize payments. Under Topic 605, we previously recognized the majority of the milestone payments we earned in the period we achieved the milestone event, which did not impact our deferred revenue balance. Under Topic 606 we are now amortizing more milestone payments over the period of our performance obligation, which adds to our deferred revenue balance. Additionally, under Topic 605 we amortized payments evenly over the period of our obligation. Under Topic 606, we are required to use an input method to determine the amount we amortize each reporting period. The increase in deferred revenue relates to agreements with the following partners: $24.2 million from Biogen; $15.9 million from AstraZeneca; $11.8 from Novartis; and $2.3 million from other partners. |
Noncontrolling Interest in Akcea Therapeutics, Inc. | Noncontrolling Interest in Akcea Therapeutics, Inc. Prior to Akcea’s IPO in July 2017, we owned 100 percent of Akcea’s stock and consolidated 100 percent of Akcea’s results in our financial statements. In connection with Akcea’s IPO, Akcea sold shares of its common stock to third parties. We owned approximately 68 percent of Akcea after the IPO and at March 31, 2018. Rx The shares third parties own represent an interest in Akcea’s equity that is not controlled by us. However, as we continue to maintain overall control of Akcea through our voting interest, we reflect the assets, liabilities and results of operations of Akcea in our consolidated financial statements. We reflect the noncontrolling interest attributable to other owners of Akcea’s common stock in a separate line on the statement of operations and a separate line within stockholders’ equity in our condensed consolidated balance sheet. In addition, we record a noncontrolling interest adjustment to account for the stock options Akcea grants, which if exercised, will dilute our ownership in Akcea. This adjustment is a reclassification within stockholders’ equity from additional paid-in capital to noncontrolling interest in Akcea equal to the amount of stock-based compensation expense Akcea had recognized. |
Cash, Cash Equivalents and Investments | Cash, cash equivalents and investments We consider all liquid investments with maturities of three months or less when we purchase them to be cash equivalents. Our short-term investments have initial maturities of greater than three months from date of purchase. We classify our short-term debt investments as “available-for-sale” and carry them at fair market value based upon prices for identical or similar items on the last day of the fiscal period. We record unrealized gains and losses as a separate component of comprehensive income (loss) and include net realized gains and losses in gain (loss) on investments. We use the specific identification method to determine the cost of securities sold. We also have equity investments of less than 20 percent ownership in publicly and privately held biotechnology companies that we received as part of a technology license or partner agreement. At March 31, 2018, we held an equity investment in one publicly held company, Antisense Therapeutics Limited, or ATL. Our other investments were in five privately-held companies, Atlantic Pharmaceuticals Limited, Dynacure SAS, Kastle Therapeutics, Seventh Sense Biosystems and Suzhou Ribo Life Science CO. In January 2018, we adopted the amended accounting guidance related to the recognition, measurement, presentation, and disclosure of certain financial instruments. The amended guidance requires us to measure and record equity investments, except those accounted for under the equity method of accounting that have a readily determinable fair value, at fair value and for us to recognize the changes in fair value in our consolidated statement of operations. Prior to 2018, we recognized unrealized gains and losses through accumulated other comprehensive income. For investments without a readily determinable fair value, beginning in 2018, we are accounting for these investments at their cost minus impairments, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Prior to 2018, we accounted for our equity investments in privately held companies under the cost method of accounting. Our adoption of this guidance did not have an impact on our results. |
Inventory Valuation | Inventory valuation We capitalize the costs of raw materials that we purchase for use in producing our drugs because until we use these raw materials they have alternative future uses. We include in inventory raw material costs for drugs that we manufacture for our partners under contractual terms and that we use primarily in our clinical development activities and drug products. We can use each of our raw materials in multiple products and, as a result, each raw material has future economic value independent of the development status of any single drug. For example, if one of our drugs failed, we could use the raw materials for that drug to manufacture our other drugs. We expense these costs when we begin to manufacture API for a particular drug. We reflect our inventory on the balance sheet at the lower of cost or market value under the first-in, first-out method, or FIFO. We review inventory periodically and reduce the carrying value of items we consider to be slow moving or obsolete to their estimated net realizable value. We consider several factors in estimating the net realizable value, including shelf life of raw materials, alternative uses for our drugs and clinical trial materials, and historical write-offs. We did not record any inventory write-offs for the three months ended March 31, 2018 and 2017. Total inventory was $9.1 million and $10.0 million as of March 31, 2018 and December 31, 2017, respectively. |
Research and Development Expenses | Our research and development expenses include wages, benefits, facilities, supplies, external services, clinical trial and manufacturing costs and other expenses that are directly related to our research and development operations. We expense research and development costs as we incur them. When we make payments for research and development services prior to the services being rendered, we record those amounts as prepaid assets on our consolidated balance sheet and we expense them as the services are provided. |
Patent Expenses | We capitalize costs consisting principally of outside legal costs and filing fees related to obtaining patents. We amortize patent costs over the useful life of the patent, beginning with the date the United States Patent and Trademark Office, or foreign equivalent, issues the patent. We review our capitalized patent costs regularly to ensure that they include costs for patents and patent applications that have future value. We evaluate patents and patent applications that we are not actively pursuing and write off any associated costs. |
Long-Lived Assets | Long-lived assets We evaluate long-lived assets, which include property, plant and equipment and patent costs acquired from third parties, for impairment on at least a quarterly basis and whenever events or changes in circumstances indicate that we may not be able to recover the carrying amount of such assets. |
Use of Estimates | Use of estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Basic and Diluted Net Income (Loss) per Share | Basic and diluted net income (loss) per share We compute basic net income (loss) per share by dividing the total net income (loss) attributable to our common stockholders by our weighted-average number of common shares outstanding during the period. The calculation of total net income (loss) attributable to our common stockholders for the three months ended March 31, 2018 considered our net income for Ionis on a stand-alone basis plus our share of Akcea’s net loss for the period. To calculate the portion of Akcea’s net loss attributable to our ownership, we multiplied Akcea’s loss per share by the weighted average shares we owned in Akcea during the period. Our basic net loss per share for the three months ended March 31, 2018 Three months ended March 31, 2018 Weighted Average Shares Owned in Akcea Akcea’s Net Income (Loss) Per Share Ionis’ Portion of Akcea’s Net Loss Common shares 45,448 $ (0.44 ) $ (19,997 ) Akcea’s net loss attributable to our ownership $ (19,997 ) Ionis’ stand-alone net income 18,785 Net loss available to Ionis common stockholders $ (1,212 ) Weighted average shares outstanding 125,330 Basic net loss per share $ (0.01 ) For the three months ended March 31, 2017, we owned 100 percent of Akcea. As a result, we did not have to adjust our earnings per share calculation. For the three months ended March 31, 2017, we had net income. As a result, we computed diluted net income per share using the weighted-average number of common shares and dilutive common equivalent shares outstanding during those periods. Diluted common equivalent shares for the three months ended March 31, 2017 consisted of the following (in thousands except per share amounts): Three months ended March 31, 2017 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 8,964 122,861 $ 0.07 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,674 Shares issuable upon restricted stock award issuance — 377 Shares issuable related to our ESPP — 60 Income available to Ionis common stockholders $ 8,964 124,972 $ 0.07 |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss Accumulated other comprehensive loss is primarily comprised of unrealized gains and losses on investments, net of taxes and adjustments we made to reclassify realized gains and losses on investments from other accumulated comprehensive income (loss) to our condensed consolidated statement of operations. The following table summarizes changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2018 and 2017 (in thousands): Three Months Ended March 31, 2018 2017 Beginning balance accumulated other comprehensive loss $ (31,759 ) $ (30,358 ) Unrealized gains (losses) on securities, net of tax (1) (1,530 ) 266 Amounts reclassified from accumulated other comprehensive income (2) — (374 ) Currency translation adjustment 55 6 Net current period other comprehensive loss (1,475 ) (102 ) Ending balance accumulated other comprehensive loss $ (33,234 ) $ (30,460 ) (1) There was no tax benefit for other comprehensive loss for the three months ended March 31, 2018 and 2017. (2) Amounts are included in investment income on our condensed consolidated statement of operations. |
Convertible Debt | Convertible debt We account for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) by separating the liability and equity components of the instruments in a manner that reflects our nonconvertible debt borrowing rate. We determine the carrying amount of the liability component by measuring the fair value of similar debt instruments that do not have the conversion feature. If no similar debt instrument exists, we estimate fair value by using assumptions that market participants would use in pricing a debt instrument, including market interest rates, credit standing, yield curves and volatilities. Determining the fair value of the debt component requires the use of accounting estimates and assumptions. These estimates and assumptions are judgmental in nature and could have a significant impact on the determination of the debt component, and the associated non-cash interest expense. We assigned a value to the debt component of our convertible notes equal to the estimated fair value of similar debt instruments without the conversion feature, which resulted in us recording our debt at a discount. We are amortizing our debt issuance costs and debt discount over the life of the convertible notes as additional non-cash interest expense utilizing the effective interest method. |
Segment Information | Segment information We have two operating segments, our Ionis Core segment and Akcea Therapeutics. Akcea is . We provide segment financial information and results for our Ionis Core segment and our Akcea Therapeutics segment based on the segregation of revenues and expenses that our chief decision maker reviews to assess operating performance and to make operating decisions. We allocate a portion of Ionis’ development, R&D support expenses and general and administrative expenses to Akcea for work we performed on behalf of Akcea. |
Stock-Based Compensation Expense | Stock-based compensation expense We measure stock-based compensation expense for equity-classified awards, principally related to stock options, restricted stock units, or RSUs, and stock purchase rights under our ESPP, based on the estimated fair value of the award on the date of grant. We recognize the value of the portion of the award that we ultimately expect to vest as stock-based compensation expense over the requisite service period in our condensed consolidated statements of operations. We reduce stock-based compensation expense for estimated forfeitures at the time of grant and revise in subsequent periods if actual forfeitures differ from those estimates. We use the Black-Scholes model to estimate the fair value of stock options granted and stock purchase rights under our ESPP. The expected term of stock options granted represents the period of time that we expect them to be outstanding. We estimate the expected term of options granted based on historical exercise patterns. For the three months ended March 31, 2018 and 2017, we used the following weighted-average assumptions in our Black-Scholes calculations: Employee Stock Options: Three Months Ended March 31, 2018 2017 Risk-free interest rate 2.2% 1.8% Dividend yield 0.0% 0.0% Volatility 63.2% 66.3% Expected life 4.6 years 4.5 years ESPP: Three Months Ended March 31, 2018 2017 Risk-free interest rate 1.6% 0.7% Dividend yield 0.0% 0.0% Volatility 44.4% 66.5% Expected life 6 months 6 months The fair value of RSUs is based on the market price of our common stock on the date of grant. RSUs vest annually over a four-year period. The weighted-average grant date fair value of RSUs granted to employees for the three months ended March 31, 2018 was $53.22 per share. We did not grant stock options or RSUs to our Board of Directors during the three months ended March 31, 2018 or 2017. The following table summarizes stock-based compensation expense for the three months ended March 31, 2018 and 2017 (in thousands). Our non-cash stock-based compensation expense includes $6.4 million and $3.2 million of stock-based compensation expense for Akcea employees for the three months ended March 31, 2018 and 2017, respectively. Three Months Ended March 31, 2018 2017 Research, development and patent $ 19,682 $ 16,122 Selling, general and administrative 8,769 4,790 Total $ 28,451 $ 20,912 As of March 31, 2018, total unrecognized estimated non-cash stock-based compensation expense related to non-vested stock options and RSUs was $90.7 million and $40.4 million, respectively. We will adjust total unrecognized compensation cost for future forfeitures. We expect to recognize the cost of non-cash stock-based compensation expense related to non-vested stock options and RSUs over a weighted average amortization period of 1.5 years and 1.9 years, respectively. |
Impact of Recently Issued Accounting Standards | Impact of recently issued accounting standards In February 2016, the FASB issued amended accounting guidance related to lease accounting, which will require us to record all leases with a term longer than one year on our balance sheet. When we record leases on our balance sheet under the new guidance, we will record a liability with a value equal to the present value of payments we will make over the life of the lease and an asset representing the underlying leased asset. The new accounting guidance requires us to determine if our leases are operating or financing leases. We will record expense for operating leases on a straight-line basis as an operating expense. If we determine a lease is a financing lease, we will record both interest and amortization expense and generally the expense will be higher in the earlier periods of the lease. The new lease standard is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. We must adopt the new standard on a modified retrospective basis, which requires us to reflect our leases on our balance sheet for the earliest comparative period presented. We plan to adopt this guidance on January 1, 2019. We are currently assessing the effects the new guidance will have on our consolidated financial statements and disclosures. In June 2016, the FASB issued guidance that changes the measurement of credit losses for most financial assets and certain other instruments. If we have credit losses, this updated guidance requires us to record allowances for these instruments under a new expected credit loss model. This model requires us to estimate the expected credit loss of an instrument over its lifetime, which represents the portion of the amortized cost basis we do not expect to collect. This change will result in us remeasuring our allowance in each reporting period we have credit losses. The new standard is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for periods beginning after December 15, 2018. When we adopt the new standard, we will make any adjustments to beginning balances through a cumulative-effect adjustment to accumulated deficit on that date. We plan to adopt this guidance on January 1, 2020. We are currently assessing the effects it will have on our consolidated financial statements and disclosures. In December 2017, the SEC staff issued guidance to address how companies should account for the Tax Act of 2017, or the Tax Act, when an entity does not have the necessary information to complete the accounting for the Tax Act and gives entities up to one year from the enactment of the Tax Act to finalize their amounts. We recognized provisional amounts in our 2017 financial statements and in these financial statements. The ultimate impact may differ materially from these provisional amounts due to, among other things, additional analysis, changes in our interpretations and assumptions, additional regulatory guidance that may be issued, and other actions we may take resulting from the Tax Act. We will assess and update our provisional amounts and disclosures, as necessary, throughout the remainder of 2018. In February 2018, the FASB issued updated guidance for reclassification of tax effects from accumulated other comprehensive income (loss). The updated guidance gives entities an option to reclassify amounts included in accumulated other comprehensive income (loss) that under the Tax Act do not have a way to be relieved, and allows a one-time reclassification to retained earnings. The updated guidance is effective for all entities for fiscal years beginning after December 31, 2018, and interim periods within those fiscal years. Early adoption is permitted, and adoption is optional. We are currently assessing the effects this updated guidance could have on our consolidated financial statements and timing of potential adoption. |
Significant Accounting Polici16
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Adjustments Made to Adopt New Revenue Accounting Guidance | The following table summarizes the adjustments we were required to make to revenue we originally reported at March 31, 2017 to adopt Topic 606 (in thousands): Three Months Ended March 31, 2017 As Previously Reported under Topic 605 Topic 606 Adjustment As Revised Revenue: Commercial revenue: SPINRAZA royalties $ 5,211 $ — $ 5,211 Licensing and other royalty revenue 3,547 (957 ) 2,590 Total commercial revenue 8,758 (957 ) 7,801 Research and development revenue under collaborative agreements 101,546 6,453 107,999 Total revenue $ 110,304 $ 5,496 $ 115,800 The following table summarizes the adjustments we were required to make to our deferred revenue amounts to adopt Topic 606 (in thousands): At December 31, 2017 As Previously Reported under Topic 605 Topic 606 Adjustment As Revised Current portion of deferred revenue $ 106,465 $ 18,871 $ 125,336 Long-term portion of deferred revenue 72,708 35,318 108,026 Total $ 179,173 $ 54,189 $ 233,362 |
Basic Net Loss per Share | Our basic net loss per share for the three months ended March 31, 2018 Three months ended March 31, 2018 Weighted Average Shares Owned in Akcea Akcea’s Net Income (Loss) Per Share Ionis’ Portion of Akcea’s Net Loss Common shares 45,448 $ (0.44 ) $ (19,997 ) Akcea’s net loss attributable to our ownership $ (19,997 ) Ionis’ stand-alone net income 18,785 Net loss available to Ionis common stockholders $ (1,212 ) Weighted average shares outstanding 125,330 Basic net loss per share $ (0.01 ) |
Basic and Diluted Net Income Per Share | For the three months ended March 31, 2017, we owned 100 percent of Akcea. As a result, we did not have to adjust our earnings per share calculation. For the three months ended March 31, 2017, we had net income. As a result, we computed diluted net income per share using the weighted-average number of common shares and dilutive common equivalent shares outstanding during those periods. Diluted common equivalent shares for the three months ended March 31, 2017 consisted of the following (in thousands except per share amounts): Three months ended March 31, 2017 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 8,964 122,861 $ 0.07 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,674 Shares issuable upon restricted stock award issuance — 377 Shares issuable related to our ESPP — 60 Income available to Ionis common stockholders $ 8,964 124,972 $ 0.07 |
Changes in Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss is primarily comprised of unrealized gains and losses on investments, net of taxes and adjustments we made to reclassify realized gains and losses on investments from other accumulated comprehensive income (loss) to our condensed consolidated statement of operations. The following table summarizes changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2018 and 2017 (in thousands): Three Months Ended March 31, 2018 2017 Beginning balance accumulated other comprehensive loss $ (31,759 ) $ (30,358 ) Unrealized gains (losses) on securities, net of tax (1) (1,530 ) 266 Amounts reclassified from accumulated other comprehensive income (2) — (374 ) Currency translation adjustment 55 6 Net current period other comprehensive loss (1,475 ) (102 ) Ending balance accumulated other comprehensive loss $ (33,234 ) $ (30,460 ) (1) There was no tax benefit for other comprehensive loss for the three months ended March 31, 2018 and 2017. (2) Amounts are included in investment income on our condensed consolidated statement of operations. |
Weighted-Average Assumptions for Stock Options | We use the Black-Scholes model to estimate the fair value of stock options granted and stock purchase rights under our ESPP. The expected term of stock options granted represents the period of time that we expect them to be outstanding. We estimate the expected term of options granted based on historical exercise patterns. For the three months ended March 31, 2018 and 2017, we used the following weighted-average assumptions in our Black-Scholes calculations: Employee Stock Options: Three Months Ended March 31, 2018 2017 Risk-free interest rate 2.2% 1.8% Dividend yield 0.0% 0.0% Volatility 63.2% 66.3% Expected life 4.6 years 4.5 years |
Weighted-Average Assumptions for ESPP | ESPP: Three Months Ended March 31, 2018 2017 Risk-free interest rate 1.6% 0.7% Dividend yield 0.0% 0.0% Volatility 44.4% 66.5% Expected life 6 months 6 months |
Stock-Based Compensation Expense | The following table summarizes stock-based compensation expense for the three months ended March 31, 2018 and 2017 (in thousands). Our non-cash stock-based compensation expense includes $6.4 million and $3.2 million of stock-based compensation expense for Akcea employees for the three months ended March 31, 2018 and 2017, respectively. Three Months Ended March 31, 2018 2017 Research, development and patent $ 19,682 $ 16,122 Selling, general and administrative 8,769 4,790 Total $ 28,451 $ 20,912 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Contract Maturity of Available-for-Sale Securities | The following table summarizes the contract maturity of the available-for-sale securities we held as of March 31, 2018: One year or less 77% After one year but within two years 18% After two years but within three and a half years 5% Total 100% |
Summary of Investments | The following is a summary of our investments (in thousands): Gross Unrealized March 31, 2018 Cost Gains Losses Estimated Fair Value Available-for-sale securities: Corporate debt securities (2) $ 433,297 $ 1 $ (1,286 ) $ 432,012 Debt securities issued by U.S. government agencies 129,235 — (323 ) 128,912 Debt securities issued by the U.S. Treasury (2) 54,076 1 (43 ) 54,034 Debt securities issued by states of the U.S. and political subdivisions of the states (2) 31,624 1 (194 ) 31,431 Total securities with a maturity of one year or less 648,232 3 (1,846 ) 646,389 Corporate debt securities 126,128 5 (1,807 ) 124,326 Debt securities issued by U.S. government agencies 21,547 — (162 ) 21,385 Debt securities issued by states of the U.S. and political subdivisions of the states 52,746 — (785 ) 51,961 Total securities with a maturity of more than one year 200,421 5 (2,754 ) 197,672 Total available-for-sale securities $ 848,653 $ 8 $ (4,600 ) $ 844,061 Gross Unrealized December 31, 2017 Cost Gains Losses Estimated Fair Value Available-for-sale securities: Corporate debt securities $ 500,599 $ 2 $ (752 ) $ 499,849 Debt securities issued by U.S. government agencies 83,926 — (212 ) 83,714 Debt securities issued by the U.S. Treasury 29,428 — (17 ) 29,411 Debt securities issued by states of the U.S. and political subdivisions of the states (2) 29,240 4 (122 ) 29,122 Total securities with a maturity of one year or less 643,193 6 (1,103 ) 642,096 Corporate debt securities 148,663 8 (1,059 ) 147,612 Debt securities issued by U.S. government agencies 52,779 — (168 ) 52,611 Debt securities issued by the U.S. Treasury 1,409 — (2 ) 1,407 Debt securities issued by states of the U.S. and political subdivisions of the states 65,550 — (740 ) 64,810 Total securities with a maturity of more than one year 268,401 8 (1,969 ) 266,440 Total available-for-sale securities $ 911,594 $ 14 $ (3,072 ) $ 908,536 (1) Our available-for-sale securities are held at amortized cost. (2) Includes investments classified as cash equivalents on our condensed consolidated balance sheet. |
Temporarily Impaired Investments | Investments we consider to be temporarily impaired at March 31, 2018 were as follows (in thousands): Less than 12 Months of Temporary Impairment More than 12 Months of Temporary Impairment Total Temporary Impairment Number of Investments Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Corporate debt securities 420 $ 470,960 $ (2,308 ) $ 71,370 $ (785 ) $ 542,330 $ (3,093 ) Debt securities issued by U.S. government agencies 52 124,729 (397 ) 25,569 (88 ) 150,298 (485 ) Debt securities issued by the U.S. Treasury 7 32,329 (43 ) — — 32,329 (43 ) Debt securities issued by states of the U.S. and political subdivisions of the states 50 48,477 (588 ) 32,145 (391 ) 80,622 (979 ) Total temporarily impaired securities 529 $ 676,495 $ (3,336 ) $ 129,084 $ (1,264 ) $ 805,579 $ (4,600 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | The following tables present the major security types we held at March 31, 2018 and December 31, 2017 that are regularly measured and carried at fair value. The tables segregate each security type by the level within the fair value hierarchy of the valuation techniques we utilized to determine the respective securities’ fair value (in thousands): At March 31, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Cash equivalents (1) $ 138,350 $ 138,350 $ — Corporate debt securities (2) 556,338 — 556,338 Debt securities issued by U.S. government agencies (3) 150,297 — 150,297 Debt securities issued by the U.S. Treasury (3) 54,034 54,034 — Debt securities issued by states of the U.S. and political subdivisions of the states (3) 83,392 — 83,392 Total $ 982,411 $ 192,384 $ 790,027 At December 31, 2017 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Cash equivalents (1) $ 86,262 $ 86,262 $ — Corporate debt securities (3) 647,461 — 647,461 Debt securities issued by U.S. government agencies (3) 136,325 — 136,325 Debt securities issued by the U.S. Treasury (3) 30,818 30,818 — Debt securities issued by states of the U.S. and political subdivisions of the states (4) 93,932 — 93,932 Total $ 994,798 $ 117,080 $ 877,718 (1) Included in cash and cash equivalents on our condensed consolidated balance sheet. (2) At March 31, 2018, $14.6 million was included in cash and cash equivalents on our condensed consolidated balance sheet, with the difference included in short-term investments on our condensed consolidated balance sheet. (3) Included in short-term investments on our condensed consolidated balance sheet. (4) At December 31, 2017, $3.5 million was included in cash and cash equivalents on our condensed consolidated balance sheet, with the difference included in short-term investments on our condensed consolidated balance sheet. |
Reconciliation of Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following is a reconciliation of the potential premium we would have received if Akcea had not completed its IPO, measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2017 (in thousands): Beginning balance of Level 3 instruments at January 1, 2017 $ — Value of the potential premium we would have received from Novartis at inception of the SPA (January 2017) 5,035 Recurring fair value adjustment during the three months ended March 31, 2017 (1,438 ) Ending balance of Level 3 instruments at March 31, 2017 $ 3,597 |
Segment Information and Conce19
Segment Information and Concentration of Business Risk (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Information and Concentration of Business Risk [Abstract] | |
Segment Information | The following table shows our segment revenue and loss from operations for the three months ended March 31, 2018 and March 31, 2017 (as revised) (in thousands), respectively. Three Months Ended March 31, 2018 Ionis Core Akcea Therapeutics Elimination of Intercompany Activity Total Revenue: Commercial revenue: SPINRAZA royalties $ 41,081 $ — $ — $ 41,081 Licensing and other royalty revenue 942 — — 942 Total commercial revenue $ 42,023 $ — $ — $ 42,023 R&D revenue under collaborative agreements $ 90,517 $ 17,108 $ (5,229 ) $ 102,396 Total segment revenue $ 132,540 $ 17,108 $ (5,229 ) $ 144,419 Total operating expenses $ 105,544 $ 47,435 $ (5,259 ) $ 147,720 Income (loss) from operations $ 26,996 $ (30,327 ) $ 30 $ (3,301 ) Three Months Ended March 31, 2017 (as revised) Ionis Core Akcea Therapeutics Elimination of Intercompany Activity Total Revenue: Commercial revenue: SPINRAZA royalties $ 5,211 $ — $ — $ 5,211 Licensing and other royalty revenue 2,590 — — 2,590 Total commercial revenue $ 7,801 $ — $ — $ 7,801 R&D revenue under collaborative agreements $ 153,382 $ 6,094 $ (51,477 ) $ 107,999 Total segment revenue $ 161,183 $ 6,094 $ (51,477 ) $ 115,800 Total operating expense $ 78,352 $ 69,470 $ (51,507 ) $ 96,315 Income (loss) from operations $ 82,831 $ (63,376 ) $ 30 $ 19,485 The following table shows our total assets by segment at March 31, 2018 and December 31, 2017 (as revised) (in thousands), respectively. Total Assets Ionis Core Akcea Therapeutics Elimination of Intercompany Activity Total March 31, 2018 $ 1,349,044 $ 252,466 $ (301,950 ) $ 1,299,560 December 31, 2017 (as revised) $ 1,342,578 $ 268,804 $ (288,608 ) $ 1,322,774 |
Revenue from Significant Partners | We have historically funded our operations from collaborations with corporate partners and a relatively small number of partners have accounted for a significant percentage of our revenue. Revenue from significant partners, which is defined as ten percent or more of our total revenue, was as follows: Three Months Ended March 31, 2018 2017 (as revised) Partner A 47 % 4 % Partner B 36 % 25 % Partner C 12 % 5 % Partner D 0% 56% |
Basis of Presentation (Details)
Basis of Presentation (Details) - Akcea [Member] - USD ($) shares in Millions, $ in Millions | Jul. 19, 2017 | Apr. 30, 2018 | Mar. 31, 2017 | Jul. 18, 2017 | Mar. 31, 2018 |
Basis of Presentation [Abstract] | |||||
Percentage ownership before IPO | 100.00% | 100.00% | |||
Percentage ownership after IPO | 68.00% | ||||
Percentage ownership | 68.00% | ||||
Subsequent Event [Member] | |||||
Basis of Presentation [Abstract] | |||||
Percentage ownership | 75.00% | ||||
Shares of Akcea stock received for license of TEGSEDI and AKCEA-TTR-L (in shares) | 8 | ||||
Additional shares of Akcea stock purchased (in shares) | 10.7 | ||||
Additional stock purchased in Akcea | $ 200 |
Significant Accounting Polici21
Significant Accounting Policies, Revenue Recognition (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017USD ($) | Feb. 28, 2017USD ($) | Jul. 31, 2016USD ($) | May 31, 2015USD ($) | Dec. 31, 2012USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($)Agreement | Jun. 30, 2015USD ($) | Dec. 31, 2017USD ($) | |
Revenue Recognition [Abstract] | |||||||||||
Revenue | $ 144,419 | $ 115,800 | |||||||||
Increase in revenue under new revenue guidance | 5,500 | ||||||||||
Increase in revenue from amortization of milestone payments achieved under new revenue guidance | 10,300 | ||||||||||
Decrease in revenue from amortization of payments using input method under new revenue guidance | $ (3,800) | ||||||||||
Number of agreements with Novartis | Agreement | 2 | ||||||||||
Period of time after billing when payment is received | 3 months | ||||||||||
Deferred Revenue [Abstract] | |||||||||||
Revenue recognized | $ 34,900 | $ 26,700 | |||||||||
Current portion of deferred revenue | $ 125,336 | 120,127 | $ 125,336 | ||||||||
Long-term portion of deferred revenue | 108,026 | 85,446 | 108,026 | ||||||||
Total | 233,362 | 233,362 | |||||||||
Increase in deferred revenue | 54,200 | ||||||||||
Biogen [Member] | |||||||||||
Deferred Revenue [Abstract] | |||||||||||
Increase in deferred revenue | 24,200 | ||||||||||
AstraZeneca [Member] | |||||||||||
Deferred Revenue [Abstract] | |||||||||||
Increase in deferred revenue | 15,900 | ||||||||||
Novartis [Member] | |||||||||||
Deferred Revenue [Abstract] | |||||||||||
Increase in deferred revenue | 11,800 | ||||||||||
Other Partners [Member] | |||||||||||
Deferred Revenue [Abstract] | |||||||||||
Increase in deferred revenue | 2,300 | ||||||||||
IONIS-DMPK [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Additional revenue recognized related to changes in estimates | 8,200 | ||||||||||
SMA Collaboration with Biogen [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Upfront payment received | 25,000 | ||||||||||
Neurology [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Additional revenue recognized related to changes in estimates | 500 | ||||||||||
Upfront payment received | $ 30,000 | ||||||||||
Milestone payment earned and amortized over period of performance | $ 10,000 | ||||||||||
SPINRAZA [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Milestone payment earned and recognized | $ 50,000 | ||||||||||
Bayer [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Upfront payment received | $ 100,000 | $ 100,000 | |||||||||
Bayer [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Upfront payment received | $ 75,000 | ||||||||||
Novartis [Member] | |||||||||||
Deferred Revenue [Abstract] | |||||||||||
Total | 70,700 | 56,700 | 70,700 | ||||||||
Commercial Revenue [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | 42,023 | 7,801 | |||||||||
SPINRAZA Royalties [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | 41,081 | 5,211 | |||||||||
Licensing and Other Royalty Revenue [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | 942 | 2,590 | |||||||||
Licensing and Other Royalty Revenue [Member] | SPINRAZA [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | $ 75,000 | ||||||||||
Research and Development Under Collaborative Agreements [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | 102,396 | 107,999 | |||||||||
Research and Development Under Collaborative Agreements [Member] | SPINRAZA [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | 90,000 | ||||||||||
Research and Development Under Collaborative Agreements [Member] | Novartis [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | $ 17,100 | 6,100 | |||||||||
New Revenue Recognition Accounting Standard [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Cumulative effect of adoption on retained earnings | (53,600) | (53,600) | |||||||||
New Revenue Recognition Accounting Standard [Member] | As Previously Reported Under Topic 605 [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | 110,304 | ||||||||||
Deferred Revenue [Abstract] | |||||||||||
Current portion of deferred revenue | 106,465 | 106,465 | |||||||||
Long-term portion of deferred revenue | 72,708 | 72,708 | |||||||||
Total | 179,173 | 179,173 | |||||||||
New Revenue Recognition Accounting Standard [Member] | As Previously Reported Under Topic 605 [Member] | Commercial Revenue [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | 8,758 | ||||||||||
New Revenue Recognition Accounting Standard [Member] | As Previously Reported Under Topic 605 [Member] | SPINRAZA Royalties [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | 5,211 | ||||||||||
New Revenue Recognition Accounting Standard [Member] | As Previously Reported Under Topic 605 [Member] | Licensing and Other Royalty Revenue [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | 3,547 | ||||||||||
New Revenue Recognition Accounting Standard [Member] | As Previously Reported Under Topic 605 [Member] | Research and Development Under Collaborative Agreements [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | 101,546 | ||||||||||
New Revenue Recognition Accounting Standard [Member] | Topic 606 Adjustment [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | 5,496 | ||||||||||
Deferred Revenue [Abstract] | |||||||||||
Current portion of deferred revenue | 18,871 | 18,871 | |||||||||
Long-term portion of deferred revenue | 35,318 | 35,318 | |||||||||
Total | $ 54,189 | $ 54,189 | |||||||||
New Revenue Recognition Accounting Standard [Member] | Topic 606 Adjustment [Member] | Commercial Revenue [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | (957) | ||||||||||
New Revenue Recognition Accounting Standard [Member] | Topic 606 Adjustment [Member] | SPINRAZA Royalties [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | 0 | ||||||||||
New Revenue Recognition Accounting Standard [Member] | Topic 606 Adjustment [Member] | Licensing and Other Royalty Revenue [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | (957) | ||||||||||
New Revenue Recognition Accounting Standard [Member] | Topic 606 Adjustment [Member] | Research and Development Under Collaborative Agreements [Member] | |||||||||||
Revenue Recognition [Abstract] | |||||||||||
Revenue | $ 6,453 |
Significant Accounting Polici22
Significant Accounting Policies, Noncontrolling Interest in Akcea (Details) - Akcea [Member] - USD ($) shares in Millions, $ in Millions | Jul. 19, 2017 | Apr. 30, 2018 | Mar. 31, 2017 | Jul. 18, 2017 | Mar. 31, 2018 |
Noncontrolling Interest in Akcea Therapeutics, Inc. [Abstract] | |||||
Percentage ownership before IPO | 100.00% | 100.00% | |||
Percentage ownership after IPO | 68.00% | ||||
Percentage ownership | 68.00% | ||||
Subsequent Event [Member] | |||||
Noncontrolling Interest in Akcea Therapeutics, Inc. [Abstract] | |||||
Percentage ownership | 75.00% | ||||
Shares of Akcea stock received for license of TEGSEDI and AKCEA-TTR-L (in shares) | 8 | ||||
Additional shares of Akcea stock purchased (in shares) | 10.7 | ||||
Additional stock purchased in Akcea | $ 200 |
Significant Accounting Polici23
Significant Accounting Policies, Cash, Cash Equivalents and Investments (Details) | Mar. 31, 2018Company |
Cash, Cash Equivalents and Investments [Abstract] | |
Number of publicly-held companies in which there is an equity ownership interest of less than 20% | 1 |
Number of privately-held companies in which there is an equity ownership interest of less than 20% | 5 |
Significant Accounting Polici24
Significant Accounting Policies, Inventory Valuation (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Valuation [Abstract] | ||
Inventories | $ 9,060 | $ 9,982 |
Significant Accounting Polici25
Significant Accounting Policies, Basic and Diluted Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 7 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jul. 18, 2017 | Dec. 31, 2017 | |
Basic Net Income (Loss) per Share [Abstract] | ||||
Basic net income (loss) per share (in dollars per share) | $ (0.01) | $ 0.07 | ||
Net income (loss) | $ (1,420) | $ 8,964 | ||
Net income (loss) available to Ionis common shareholders | $ (1,212) | $ 8,964 | ||
Shares used in computing basic net income (loss) per share (in shares) | 125,330 | 122,861 | ||
Income available to Ionis common shareholders, plus assumed conversions | $ 8,964 | |||
Shares issuable related to our ESPP | 60 | |||
Shares used in computing diluted net income per share (in shares) | 125,330 | 124,972 | ||
Diluted net income per share (in dollars per share) | $ (0.01) | $ 0.07 | ||
1 Percent Convertible Senior Notes [Member] | ||||
Basic Net Income (Loss) per Share [Abstract] | ||||
Interest rate on convertible senior notes | 1.00% | 1.00% | 1.00% | |
2 3/4 Percent Convertible Senior Notes [Member] | ||||
Basic Net Income (Loss) per Share [Abstract] | ||||
Interest rate on convertible senior notes | 2.75% | |||
Stock Options [Member] | ||||
Basic Net Income (Loss) per Share [Abstract] | ||||
Shares issuable related to stock-based compensation (in shares) | 1,674 | |||
Restricted Stock Awards [Member] | ||||
Basic Net Income (Loss) per Share [Abstract] | ||||
Shares issuable related to stock-based compensation (in shares) | 377 | |||
Ionis [Member] | ||||
Basic Net Income (Loss) per Share [Abstract] | ||||
Net income (loss) | $ 18,785 | |||
Akcea [Member] | ||||
Basic Net Income (Loss) per Share [Abstract] | ||||
Net income (loss) | $ (19,997) | |||
Percentage ownership | 100.00% | 100.00% | ||
Akcea [Member] | Common Stock [Member] | ||||
Basic Net Income (Loss) per Share [Abstract] | ||||
Weighted average shares owned in Akcea (in shares) | 45,448 | |||
Basic net income (loss) per share (in dollars per share) | $ (0.44) | |||
Net income (loss) | $ (19,997) |
Significant Accounting Polici26
Significant Accounting Policies, Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 365,280 | ||
Net current period other comprehensive loss | (1,475) | $ (102) | |
Ending balance | 387,101 | ||
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (31,759) | (30,358) | |
Ending balance | (33,234) | (30,460) | |
Unrealized Gains (Losses) on Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications, net of tax | [1] | (1,530) | 266 |
Amounts reclassified from accumulated other comprehensive income (loss) | [2] | 0 | (374) |
Other comprehensive income (loss), tax | 0 | 0 | |
Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications, net of tax | $ 55 | $ 6 | |
[1] | There was no tax benefit for other comprehensive loss for the three months ended March 31, 2018 and 2017. | ||
[2] | Amounts are included in investment income on our condensed consolidated statement of operations. |
Significant Accounting Polici27
Significant Accounting Policies, Segment Information (Details) | 3 Months Ended |
Mar. 31, 2018Segment | |
Segment Information [Abstract] | |
Number of operating segments | 2 |
Significant Accounting Polici28
Significant Accounting Policies, Stock-Based Compensation Expense (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock-based Compensation Expense [Abstract] | ||
Stock-based compensation expense | $ 28,451 | $ 20,912 |
Research, Development and Patent [Member] | ||
Stock-based Compensation Expense [Abstract] | ||
Stock-based compensation expense | 19,682 | 16,122 |
Selling, General and Administrative [Member] | ||
Stock-based Compensation Expense [Abstract] | ||
Stock-based compensation expense | $ 8,769 | $ 4,790 |
Employee Stock Options [Member] | ||
Weighted-Average Assumptions [Abstract] | ||
Risk-free interest rate | 2.20% | 1.80% |
Dividend yield | 0.00% | 0.00% |
Volatility | 63.20% | 66.30% |
Expected life | 4 years 7 months 6 days | 4 years 6 months |
Unrecognized Compensation Expense [Abstract] | ||
Unrecognized compensation expense related to non-vested stock options | $ 90,700 | |
Weighted average period for recognition | 1 year 6 months | |
Employee Stock Options [Member] | Board of Directors [Member] | ||
Stock-based Compensation Expense [Abstract] | ||
Options granted (in shares) | 0 | 0 |
Board of Director Stock Options [Member] | ||
Weighted-Average Assumptions [Abstract] | ||
Risk-free interest rate | 2.20% | 1.30% |
Dividend yield | 0.00% | 0.00% |
Volatility | 61.20% | 53.10% |
Expected life | 6 years 7 months 6 days | 6 years 6 months |
ESPP [Member] | ||
Weighted-Average Assumptions [Abstract] | ||
Risk-free interest rate | 1.60% | 0.70% |
Dividend yield | 0.00% | 0.00% |
Volatility | 44.40% | 66.50% |
Expected life | 6 months | 6 months |
RSUs [Member] | ||
Stock-based Compensation Expense [Abstract] | ||
Vesting period | 4 years | |
Unrecognized Compensation Expense [Abstract] | ||
Unrecognized compensation cost related to non-vested RSUs | $ 40,400 | |
Weighted average period for recognition | 1 year 10 months 24 days | |
RSUs [Member] | Employees [Member] | ||
Stock-based Compensation Expense [Abstract] | ||
Weighted-average grant date fair value (in dollars per share) | $ 53.22 | |
RSUs [Member] | Board of Directors [Member] | ||
Stock-based Compensation Expense [Abstract] | ||
Units granted (in shares) | 0 | 0 |
Akcea Therapeutics [Member] | ||
Stock-based Compensation Expense [Abstract] | ||
Stock-based compensation expense | $ 6,400 | $ 3,200 |
Investments, Contract Maturity
Investments, Contract Maturity of Available-for-Sale Securities (Details) | 3 Months Ended |
Mar. 31, 2018Company | |
Contract Maturity of Available-for-Sale Securities [Abstract] | |
One year or less | 77.00% |
After one year but within two years | 18.00% |
After two years but within three and a half years | 5.00% |
Total | 100.00% |
Percentage of available-for-sale securities with a maturity of less than two years | 95.00% |
Maximum contract maturity period, range 1 | 1 year |
Maximum contract maturity period, range 2 | 2 years |
Maximum contract maturity period, range 3 | 3 years 6 months |
Ownership Interests in Private and Public Companies [Abstract] | |
Number of privately-held companies in which there is an equity ownership interest of less than 20% | 5 |
Number of publicly-held companies in which there is an equity ownership interest of less than 20% | 1 |
Investments, Summary of Investm
Investments, Summary of Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | ||
Available-for-sale Securities [Member] | ||||
Summary of Investments [Abstract] | ||||
Cost | [1] | $ 848,653 | $ 911,594 | |
Gross unrealized gains | 8 | 14 | ||
Gross unrealized losses | (4,600) | (3,072) | ||
Estimated fair value | 844,061 | 908,536 | ||
Available-for-sale Securities [Member] | Securities with Maturity of One Year or Less [Member] | ||||
Summary of Investments [Abstract] | ||||
Cost | [1] | 648,232 | 643,193 | |
Gross unrealized gains | 3 | 6 | ||
Gross unrealized losses | (1,846) | (1,103) | ||
Estimated fair value | 646,389 | 642,096 | ||
Available-for-sale Securities [Member] | Securities with Maturity of More than One Year [Member] | ||||
Summary of Investments [Abstract] | ||||
Cost | [1] | 200,421 | 268,401 | |
Gross unrealized gains | 5 | 8 | ||
Gross unrealized losses | (2,754) | (1,969) | ||
Estimated fair value | 197,672 | 266,440 | ||
Corporate Debt Securities [Member] | Securities with Maturity of One Year or Less [Member] | ||||
Summary of Investments [Abstract] | ||||
Cost | [1] | 433,297 | [2] | 500,599 |
Gross unrealized gains | 1 | 2 | ||
Gross unrealized losses | (1,286) | (752) | ||
Estimated fair value | 432,012 | 499,849 | ||
Corporate Debt Securities [Member] | Securities with Maturity of More than One Year [Member] | ||||
Summary of Investments [Abstract] | ||||
Cost | [1] | 126,128 | 148,663 | |
Gross unrealized gains | 5 | 8 | ||
Gross unrealized losses | (1,807) | (1,059) | ||
Estimated fair value | 124,326 | 147,612 | ||
Debt Securities issued by U.S. Government Agencies [Member] | Securities with Maturity of One Year or Less [Member] | ||||
Summary of Investments [Abstract] | ||||
Cost | [1] | 129,235 | 83,926 | |
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | (323) | (212) | ||
Estimated fair value | 128,912 | 83,714 | ||
Debt Securities issued by U.S. Government Agencies [Member] | Securities with Maturity of More than One Year [Member] | ||||
Summary of Investments [Abstract] | ||||
Cost | [1] | 21,547 | 52,779 | |
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | (162) | (168) | ||
Estimated fair value | 21,385 | 52,611 | ||
Debt Securities issued by the U.S. Treasury [Member] | Securities with Maturity of One Year or Less [Member] | ||||
Summary of Investments [Abstract] | ||||
Cost | [1] | 54,076 | [2] | 29,428 |
Gross unrealized gains | 1 | 0 | ||
Gross unrealized losses | (43) | (17) | ||
Estimated fair value | 54,034 | 29,411 | ||
Debt Securities issued by the U.S. Treasury [Member] | Securities with Maturity of More than One Year [Member] | ||||
Summary of Investments [Abstract] | ||||
Cost | 1,409 | |||
Gross unrealized gains | 0 | |||
Gross unrealized losses | (2) | |||
Estimated fair value | 1,407 | |||
Debt Securities issued by States of the U.S. and Political Subdivisions of the States [Member] | Securities with Maturity of One Year or Less [Member] | ||||
Summary of Investments [Abstract] | ||||
Cost | [1],[2] | 31,624 | 29,240 | |
Gross unrealized gains | 1 | 4 | ||
Gross unrealized losses | (194) | (122) | ||
Estimated fair value | 31,431 | 29,122 | ||
Debt Securities issued by States of the U.S. and Political Subdivisions of the States [Member] | Securities with Maturity of More than One Year [Member] | ||||
Summary of Investments [Abstract] | ||||
Cost | [1] | 52,746 | 65,550 | |
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | (785) | (740) | ||
Estimated fair value | $ 51,961 | $ 64,810 | ||
[1] | Our available-for-sale securities are held at amortized cost. | |||
[2] | Includes investments classified as cash equivalents on our condensed consolidated balance sheet. |
Investments, Investments Tempor
Investments, Investments Temporarily Impaired (Details) $ in Thousands | Mar. 31, 2018USD ($)Investment |
Temporarily Impaired Investments [Abstract] | |
Number of investments | Investment | 529 |
Estimated fair value, less than 12 months of temporary impairment | $ 676,495 |
Unrealized losses, less than 12 months of temporary impairment | (3,336) |
Estimated fair value, more than 12 months of temporary impairment | 129,084 |
Unrealized losses, more than 12 months of temporary impairment | (1,264) |
Estimated fair value, total temporary impairment | 805,579 |
Unrealized losses, total temporary impairment | $ (4,600) |
Corporate Debt Securities [Member] | |
Temporarily Impaired Investments [Abstract] | |
Number of investments | Investment | 420 |
Estimated fair value, less than 12 months of temporary impairment | $ 470,960 |
Unrealized losses, less than 12 months of temporary impairment | (2,308) |
Estimated fair value, more than 12 months of temporary impairment | 71,370 |
Unrealized losses, more than 12 months of temporary impairment | (785) |
Estimated fair value, total temporary impairment | 542,330 |
Unrealized losses, total temporary impairment | $ (3,093) |
Debt Securities issued by U.S. Government Agencies [Member] | |
Temporarily Impaired Investments [Abstract] | |
Number of investments | Investment | 52 |
Estimated fair value, less than 12 months of temporary impairment | $ 124,729 |
Unrealized losses, less than 12 months of temporary impairment | (397) |
Estimated fair value, more than 12 months of temporary impairment | 25,569 |
Unrealized losses, more than 12 months of temporary impairment | (88) |
Estimated fair value, total temporary impairment | 150,298 |
Unrealized losses, total temporary impairment | $ (485) |
Debt Securities issued by the U.S. Treasury [Member] | |
Temporarily Impaired Investments [Abstract] | |
Number of investments | Investment | 7 |
Estimated fair value, less than 12 months of temporary impairment | $ 32,329 |
Unrealized losses, less than 12 months of temporary impairment | (43) |
Estimated fair value, more than 12 months of temporary impairment | 0 |
Unrealized losses, more than 12 months of temporary impairment | 0 |
Estimated fair value, total temporary impairment | 32,329 |
Unrealized losses, total temporary impairment | $ (43) |
Debt Securities issued by States of the U.S. and Political Subdivisions of the States [Member] | |
Temporarily Impaired Investments [Abstract] | |
Number of investments | Investment | 50 |
Estimated fair value, less than 12 months of temporary impairment | $ 48,477 |
Unrealized losses, less than 12 months of temporary impairment | (588) |
Estimated fair value, more than 12 months of temporary impairment | 32,145 |
Unrealized losses, more than 12 months of temporary impairment | (391) |
Estimated fair value, total temporary impairment | 80,622 |
Unrealized losses, total temporary impairment | $ (979) |
Fair Value Measurements, Fair V
Fair Value Measurements, Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |||
Fair Value Measurements [Abstract] | |||||
Transfers from Level 1 to Level 2 | $ 0 | ||||
Transfers from Level 2 to Level 1 | 0 | ||||
Recurring Basis [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Cash equivalents | [1] | 138,350 | $ 86,262 | ||
Total | 982,411 | 994,798 | |||
Recurring Basis [Member] | Corporate Debt Securities [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 556,338 | 647,461 | [2] | ||
Recurring Basis [Member] | Corporate Debt Securities [Member] | Cash and Cash Equivalents [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 14,600 | ||||
Recurring Basis [Member] | Debt Securities issued by U.S. Government Agencies [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | [2] | 150,297 | 136,325 | ||
Recurring Basis [Member] | Debt Securities issued by the U.S. Treasury [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | [2] | 54,034 | 30,818 | ||
Recurring Basis [Member] | Debt Securities issued by States of the U.S. and Political Subdivisions of the States [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 83,392 | [2] | 93,932 | [3] | |
Recurring Basis [Member] | Debt Securities issued by States of the U.S. and Political Subdivisions of the States [Member] | Cash and Cash Equivalents [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 3,500 | ||||
Recurring Basis [Member] | Quoted Prices in Active Markets (Level 1) [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Cash equivalents | 138,350 | 86,262 | |||
Total | 192,384 | 117,080 | |||
Recurring Basis [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Corporate Debt Securities [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 0 | 0 | |||
Recurring Basis [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Debt Securities issued by U.S. Government Agencies [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 0 | 0 | |||
Recurring Basis [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Debt Securities issued by the U.S. Treasury [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 54,034 | 30,818 | |||
Recurring Basis [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Debt Securities issued by States of the U.S. and Political Subdivisions of the States [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 0 | 0 | |||
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Cash equivalents | 0 | 0 | |||
Total | 790,027 | 877,718 | |||
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Debt Securities [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 556,338 | [4] | 647,461 | ||
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Debt Securities issued by U.S. Government Agencies [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 150,297 | 136,325 | |||
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Debt Securities issued by the U.S. Treasury [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 0 | 0 | |||
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Debt Securities issued by States of the U.S. and Political Subdivisions of the States [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | $ 83,392 | $ 93,932 | |||
[1] | Included in cash and cash equivalents on our condensed consolidated balance sheet. | ||||
[2] | Included in short-term investments on our condensed consolidated balance sheet. | ||||
[3] | At December 31, 2017, $3.5 million was included in cash and cash equivalents on our condensed consolidated balance sheet, with the difference included in short-term investments on our condensed consolidated balance sheet. | ||||
[4] | At March 31, 2018, $14.6 million was included in cash and cash equivalents on our condensed consolidated balance sheet, with the difference included in short-term investments on our condensed consolidated balance sheet. |
Fair Value Measurements, Fair33
Fair Value Measurements, Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2017 | |
Novartis [Member] | ||||
Novartis Future Stock Purchase [Abstract] | ||||
Additional amount of common stock required to be purchased | $ 50,000 | |||
Fair value of potential future premium | $ 5,000 | |||
1 Percent Convertible Senior Notes [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Interest rate on convertible senior notes | 1.00% | 1.00% | 1.00% | |
Significant Other Observable Inputs (Level 2) [Member] | 1 Percent Convertible Senior Notes [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Fair value of convertible notes | $ 729,100 | |||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Financial instruments | $ 0 | $ 0 | ||
Potential Future Premium [Member] | ||||
Unobservable Inputs (Level 3) [Roll Forward] | ||||
Beginning balance of Level 3 instruments | $ 0 | |||
Value of the potential premium we would have received from Novartis at inception of the SPA (January 2017) | 5,035 | |||
Recurring fair value adjustment during the three months ended March 31, 2017 | (1,438) | |||
Ending balance of Level 3 instruments | $ 3,597 |
Long-Term Obligations, Line of
Long-Term Obligations, Line of Credit Arrangement (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Fixed Rate Note with Morgan Stanley [Member] | |
Line of Credit Arrangement [Abstract] | |
Outstanding borrowings | $ 12.5 |
Interest rate | 2.31% |
Maturity date | Sep. 30, 2019 |
Morgan Stanley [Member] | Revolving Line of Credit [Member] | |
Line of Credit Arrangement [Abstract] | |
Term of agreement | 5 years |
Maximum borrowing capacity | $ 30 |
Commitment fee percentage on unused capacity | 0.25% |
Morgan Stanley [Member] | Revolving Line of Credit [Member] | LIBOR [Member] | |
Line of Credit Arrangement [Abstract] | |
Term of variable rate | 1 month |
Basis spread on variable rate | 1.25% |
Term of fixed rate elected | one, two, three, four, six, or twelve months |
Long-Term Obligations, Research
Long-Term Obligations, Research and Development and Manufacturing Facilities (Details) $ in Millions | 1 Months Ended |
Jul. 31, 2017USD ($) | |
Primary R&D Facility [Member] | |
Research and Development Facility [Abstract] | |
Payment to acquire building | $ 79.4 |
Proceeds from mortgage loan | $ 51.3 |
Interest rate | 3.88% |
Manufacturing Facility [Member] | |
Research and Development Facility [Abstract] | |
Payment to acquire building | $ 14 |
Proceeds from mortgage loan | $ 9.1 |
Interest rate | 4.20% |
Collaborative Arrangements an36
Collaborative Arrangements and Licensing Agreements, AstraZeneca (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |||||
Dec. 31, 2016USD ($) | Jul. 31, 2015USD ($)DrugPerformanceObligation | Dec. 31, 2012USD ($)PerformanceObligation | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2014PerformanceObligation | |
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Number of separate performance obligations | PerformanceObligation | 1 | ||||||
Revenue earned | $ 144,419 | $ 115,800 | |||||
Deferred revenue | $ 233,362 | ||||||
Licensing and Other Royalty Revenue [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue earned | 942 | 2,590 | |||||
R&D Revenue Under Collaborative Agreements [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue earned | 102,396 | $ 107,999 | |||||
AstraZeneca [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Deferred revenue | $ 51,300 | $ 57,700 | |||||
AstraZeneca [Member] | Revenue [Member] | Strategic Partner [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Concentration percentage | 47.00% | 4.00% | |||||
AstraZeneca [Member] | R&D Revenue Under Collaborative Agreements [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue earned | $ 68,400 | $ 4,900 | |||||
Cardiac, Renal and Metabolic Diseases [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Number of drugs that can be licensed under option in collaboration agreements | Drug | 3 | ||||||
Upfront payment received | $ 65,000 | ||||||
Minimum amount of payments receivable for license fees and substantive milestones | 4,000,000 | ||||||
Maximum amount of payments receivable for development milestones | 1,100,000 | ||||||
Maximum amount of payments receivable for regulatory milestones | 2,900,000 | ||||||
Cumulative payments received | 124,000 | ||||||
Next prospective payment | 10,000 | ||||||
Transaction price | $ 65,000 | ||||||
Cardiac, Renal and Metabolic Diseases [Member] | IONIS-AZ5-2.5 [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue earned | 30,000 | ||||||
Cardiac, Renal and Metabolic Diseases [Member] | IONIS-AZ6-2.5 [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue earned | 30,000 | ||||||
Cardiac, Renal and Metabolic Diseases [Member] | R&D Revenue Under Collaborative Agreements [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Payments included in transaction price for performance obligation | 90,000 | ||||||
Oncology [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Upfront payment received | $ 31,000 | ||||||
Minimum amount of payments receivable for license fees and substantive milestones | 750,000 | ||||||
Maximum amount of payments receivable for development milestones | 226,000 | ||||||
Maximum amount of payments receivable for regulatory milestones | 485,000 | ||||||
Cumulative payments received | 97,800 | ||||||
Next prospective payment | $ 17,500 | ||||||
Number of separate performance obligations | PerformanceObligation | 4 | ||||||
Transaction price | $ 31,000 | ||||||
Number of obligations fully satisfied | PerformanceObligation | 3 | ||||||
Oncology [Member] | IONIS-KRAS-2.5 [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue earned | $ 13,000 | ||||||
Oncology [Member] | R&D Revenue Under Collaborative Agreements [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Transaction price | $ 7,600 |
Collaborative Arrangements an37
Collaborative Arrangements and Licensing Agreements, Biogen (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Apr. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)PerformanceObligationTarget | Jul. 31, 2016USD ($) | Sep. 30, 2013USD ($)PerformanceObligation | Dec. 31, 2012USD ($)PerformanceObligationTargetProgram | Mar. 31, 2018USD ($)Drug | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)PerformanceObligationTarget | Dec. 31, 2016PerformanceObligation | Jul. 31, 2015PerformanceObligation | |
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Number of separate performance obligations | PerformanceObligation | 1 | |||||||||
Revenue earned | $ 144,419 | $ 115,800 | ||||||||
Deferred revenue | $ 233,362 | $ 233,362 | ||||||||
SPINRAZA Royalties [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Revenue earned | 41,081 | 5,211 | ||||||||
Licensing and Other Royalty Revenue [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Revenue earned | 942 | 2,590 | ||||||||
R&D Revenue Under Collaborative Agreements [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Revenue earned | $ 102,396 | 107,999 | ||||||||
Biogen [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Number of additional drugs in clinical development to treat neurodegenerative diseases | Drug | 6 | |||||||||
Cumulative payments received | $ 800,000 | |||||||||
Revenue earned | 51,900 | $ 28,700 | ||||||||
Deferred revenue | $ 93,600 | $ 84,600 | 93,600 | |||||||
Biogen [Member] | Revenue [Member] | Strategic Partner [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Concentration percentage | 36.00% | 25.00% | ||||||||
Biogen [Member] | SPINRAZA Royalties [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Revenue earned | $ 41,100 | $ 5,200 | ||||||||
Biogen [Member] | R&D Revenue Under Collaborative Agreements [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Revenue earned | 10,800 | $ 23,500 | ||||||||
SPINRAZA [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Cumulative payments received | 436,000 | |||||||||
Number of separate performance obligations | PerformanceObligation | 2 | |||||||||
SPINRAZA [Member] | Licensing and Other Royalty Revenue [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Cumulative revenue earned | 155,000 | |||||||||
Revenue earned | $ 75,000 | |||||||||
SPINRAZA [Member] | R&D Revenue Under Collaborative Agreements [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Revenue earned | 90,000 | |||||||||
Neurology [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Cumulative payments received | 58,000 | |||||||||
Upfront payment received | $ 30,000 | |||||||||
Next prospective payment | 7,500 | |||||||||
Number of separate performance obligations | PerformanceObligation | 1 | |||||||||
Transaction price | $ 30,000 | |||||||||
Number of targets | Target | 3 | |||||||||
Number of programs under which drugs are to be developed and commercialized | Program | 3 | |||||||||
Maximum amount of payments receivable per program for license fee and substantive milestone payments | 210,000 | |||||||||
Maximum amount of payments receivable per program for development milestones | 10,000 | |||||||||
Maximum amount of payments receivable per program for regulatory milestones | 130,000 | |||||||||
Neurology [Member] | R&D Revenue Under Collaborative Agreements [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Payments included in transaction price for performance obligation | 40,000 | |||||||||
Strategic Neurology [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Cumulative payments received | 165,000 | |||||||||
Milestone payments received | $ 15,000 | |||||||||
Upfront payment received | $ 100,000 | |||||||||
Next prospective payment | $ 10,000 | |||||||||
Number of separate performance obligations | PerformanceObligation | 1 | |||||||||
Transaction price | $ 100,000 | |||||||||
Number of targets | Target | 2 | 2 | ||||||||
Number of drugs currently being advanced | Drug | 5 | |||||||||
Strategic Neurology [Member] | R&D Revenue Under Collaborative Agreements [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Payments included in transaction price for performance obligation | $ 145,000 | |||||||||
Strategic Neurology [Member] | Antisense Molecule [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Maximum amount of payments receivable for license fees and substantive milestones | 260,000 | |||||||||
Maximum amount of payments receivable for development milestones | 60,000 | |||||||||
Maximum amount of payments receivable for regulatory milestones | 130,000 | |||||||||
Strategic Neurology [Member] | Other Modalities [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Maximum amount of payments receivable for license fees and substantive milestones | 90,000 | |||||||||
Maximum amount of payments receivable for development milestones | 35,000 | |||||||||
Maximum amount of payments receivable for regulatory milestones | 55,000 | |||||||||
New Antisense Drugs for Treatment of SMA [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Upfront payment received | $ 25,000 | |||||||||
Maximum amount of payments receivable for license fees and substantive milestones | 1,200,000 | |||||||||
Maximum amount of payments receivable for development milestones | 80,000 | |||||||||
Maximum amount of payments receivable for commercialization milestones | 180,000 | |||||||||
Maximum amount of payments receivable for sales milestones | $ 800,000 | |||||||||
Royalty percentage received on net sales of drug | 20.00% | |||||||||
Next prospective payment | $ 60,000 | |||||||||
Number of separate performance obligations | PerformanceObligation | 1 | 1 | ||||||||
Transaction price | $ 25,000 | $ 25,000 | ||||||||
Expanded Strategic Neurology [Member] | Subsequent Event [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Upfront payment, including purchase of stock | $ 1,000,000 | |||||||||
Purchase of stock | 625,000 | |||||||||
Upfront payment | $ 375,000 | |||||||||
Percentage cash premium to be paid on shares purchased | 25.00% | |||||||||
Royalty percentage received on net sales of drug | 20.00% | |||||||||
Maximum amount of payments receivable per program for license fee and substantive milestone payments | $ 270,000 | |||||||||
Stock to be purchased (in shares) | shares | 11,501,153 | |||||||||
Share price (in dollars per share) | $ / shares | $ 54.34 |
Collaborative Arrangements an38
Collaborative Arrangements and Licensing Agreements, Bayer (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |||||
Feb. 28, 2017USD ($)PerformanceObligation | May 31, 2015USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2015USD ($)PerformanceObligation | Dec. 31, 2017USD ($) | Jul. 31, 2015PerformanceObligation | |
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Number of separate performance obligations | PerformanceObligation | 1 | ||||||
Revenue earned | $ 144,419 | $ 115,800 | |||||
Deferred revenue | $ 233,362 | ||||||
Licensing and Other Royalty Revenue [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue earned | 942 | 2,590 | |||||
R&D Revenue Under Collaborative Agreements [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue earned | 102,396 | $ 107,999 | |||||
Bayer [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Maximum amount of payments receivable for license fees and substantive milestones | 385,000 | ||||||
Maximum amount of payments receivable for development milestones | 125,000 | ||||||
Maximum amount of payments receivable for commercialization milestones | 110,000 | ||||||
Cumulative payments received | 175,000 | ||||||
Next prospective milestone | 10,000 | ||||||
Deferred revenue | $ 8,700 | $ 9,300 | |||||
Bayer [Member] | Revenue [Member] | Strategic Partner [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Concentration percentage | 56.00% | ||||||
Bayer [Member] | Minimum [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Royalty percentage received on gross margins of both drugs combined | 20.00% | ||||||
Bayer [Member] | R&D Revenue Under Collaborative Agreements [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue earned | $ 600 | $ 65,200 | |||||
Bayer [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Upfront payment received | $ 100,000 | $ 100,000 | |||||
Number of separate performance obligations | PerformanceObligation | 3 | ||||||
Transaction price | $ 100,000 | ||||||
Bayer [Member] | IONIS-FXI [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Transaction price | 91,200 | ||||||
Revenue earned | $ 91,200 | ||||||
Bayer [Member] | R&D Services for IONIS-FXI [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Transaction price | 4,300 | ||||||
Bayer [Member] | IONIS-FXI API [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Transaction price | $ 4,500 | ||||||
Bayer [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Upfront payment received | $ 75,000 | ||||||
Payment received for advancing programs | $ 75,000 | ||||||
Number of separate performance obligations | PerformanceObligation | 2 | ||||||
Transaction price | $ 75,000 | ||||||
Bayer [Member] | IONIS-FXI-L [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Transaction price | 64,900 | ||||||
Bayer [Member] | R&D Services for IONIS-FXI-L [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Transaction price | $ 10,100 |
Collaborative Arrangements an39
Collaborative Arrangements and Licensing Agreements, Janssen Biotech, Inc. (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 17 Months Ended | |||||
Nov. 30, 2017USD ($) | Jul. 31, 2016USD ($) | Dec. 31, 2014USD ($)PerformanceObligationProgram | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Nov. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Jul. 31, 2015PerformanceObligation | |
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Number of separate performance obligations | PerformanceObligation | 1 | |||||||
Revenue earned | $ 144,419 | $ 115,800 | ||||||
Deferred revenue | $ 233,362 | |||||||
Licensing and Other Royalty Revenue [Member] | ||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Revenue earned | 942 | 2,590 | ||||||
R&D Revenue Under Collaborative Agreements [Member] | ||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Revenue earned | 102,396 | 107,999 | ||||||
Janssen Biotech, Inc. [Member] | ||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Number of programs under which drugs are to be developed and commercialized | Program | 3 | |||||||
Upfront payment received | $ 35,000 | |||||||
Minimum amount of payments receivable for license fees and substantive milestones | 800,000 | |||||||
Maximum amount of payments receivable for development milestones | 175,000 | |||||||
Maximum amount of payments receivable for regulatory milestones | 440,000 | |||||||
Maximum amount of payments receivable for commercialization milestones | 180,000 | |||||||
Cumulative payments received | 72,000 | |||||||
Next prospective milestone | 5,000 | |||||||
Number of separate performance obligations | PerformanceObligation | 1 | |||||||
Transaction price | $ 35,000 | |||||||
Deferred revenue | 2,800 | $ 0 | ||||||
Janssen Biotech, Inc. [Member] | Licensing and Other Royalty Revenue [Member] | ||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Revenue earned | $ 15,000 | |||||||
Janssen Biotech, Inc. [Member] | IONIS-JBI1-2.5 [Member] | ||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Revenue earned | $ 10,000 | |||||||
Janssen Biotech, Inc. [Member] | IONIS-JBI2-2.5 [Member] | ||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Revenue earned | $ 5,000 | |||||||
Janssen Biotech, Inc. [Member] | R&D Revenue Under Collaborative Agreements [Member] | ||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Revenue earned | $ 100 | $ 2,500 |
Collaborative Arrangements an40
Collaborative Arrangements and Licensing Agreements, Novartis (Details) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | ||||
Jul. 31, 2017USD ($) | Jan. 31, 2017Drug | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($)PerformanceObligationshares | Dec. 31, 2017USD ($) | Jul. 31, 2015PerformanceObligation | |
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Number of separate performance obligations | PerformanceObligation | 1 | |||||
Revenue earned | $ 144,419 | $ 115,800 | ||||
Deferred revenue | $ 233,362 | |||||
R&D Services for AKCEA-APO(a)-L [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Transaction price | 64,000 | |||||
Delivery of AKCEA-APO(a)-L [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Transaction price | 1,500 | |||||
R&D Services for AKCEA-APOCIII-L [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Transaction price | 40,100 | |||||
Delivery of AKCEA-APOCIII-L [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Transaction price | 2,800 | |||||
R&D Revenue Under Collaborative Agreements [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Revenue earned | 102,396 | $ 107,999 | ||||
Novartis [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Shares issued (in shares) | shares | 1.6 | |||||
Proceeds from sale of common stock | $ 100,000 | |||||
Number of separate performance obligations | PerformanceObligation | 4 | |||||
Transaction price | $ 108,400 | |||||
Premium received on shares issued | 28,400 | |||||
Potential premium received if common stock is purchased in the future | 5,000 | |||||
Deferred revenue | $ 56,700 | $ 70,700 | ||||
Novartis [Member] | Revenue [Member] | Strategic Partner [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Concentration percentage | 12.00% | |||||
Novartis [Member] | Minimum [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Number of drugs with exclusive option that could be exercised | Drug | 1 | |||||
Novartis [Member] | R&D Revenue Under Collaborative Agreements [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Revenue earned | $ 17,100 | 6,100 | ||||
Akcea [Member] | AKCEA-APO(a)-L [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Maximum amount of payments receivable for milestones | 600,000 | |||||
Maximum amount of payments receivable for development milestones | 25,000 | |||||
Maximum amount of payments receivable for regulatory milestones | 290,000 | |||||
Maximum amount of payments receivable for commercialization milestones | $ 285,000 | |||||
Royalty percentage received on sales of drug | 20.00% | |||||
Akcea [Member] | AKCEA-APOCIII-L [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Maximum amount of payments receivable for milestones | $ 530,000 | |||||
Maximum amount of payments receivable for development milestones | 25,000 | |||||
Maximum amount of payments receivable for regulatory milestones | 240,000 | |||||
Maximum amount of payments receivable for commercialization milestones | $ 265,000 | |||||
Royalty percentage received on sales of drug | 20.00% | |||||
Akcea [Member] | Novartis [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Upfront payment received | 75,000 | |||||
Portion of upfront payment retained | 60,000 | |||||
Portion of upfront payment paid as a sublicense fee | $ 15,000 | |||||
License fee receivable per drug | $ 150,000 | |||||
Percentage of license fees, milestone payments and royalties paid as sublicense fee | 50.00% | |||||
Proceeds from sale of common stock to Novartis in a private placement | $ 50,000 |
Collaborative Arrangements an41
Collaborative Arrangements and Licensing Agreements, Roche (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |||||
Jan. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Apr. 30, 2013USD ($)PerformanceObligation | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Jul. 31, 2015PerformanceObligation | |
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Number of separate performance obligations | PerformanceObligation | 1 | ||||||
Revenue earned | $ 144,419 | $ 115,800 | |||||
Deferred revenue | $ 233,362 | ||||||
Licensing and Other Royalty Revenue [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue earned | 942 | 2,590 | |||||
R&D Revenue Under Collaborative Agreements [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue earned | 102,396 | 107,999 | |||||
Roche [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Upfront payment received | $ 30,000 | ||||||
Milestone payments received | $ 3,000 | ||||||
Maximum amount of payments receivable for license fees and substantive milestones | 365,000 | ||||||
Maximum amount of payments receivable for development milestones | 70,000 | ||||||
Maximum amount of payments receivable for regulatory milestones | 170,000 | ||||||
Maximum amount of payments receivable for commercialization milestones | 80,000 | ||||||
Maximum amount of payment receivable for each additional drug developed | 136,500 | ||||||
Cumulative payments received | 105,000 | ||||||
Next prospective milestone | 10,000 | ||||||
Number of separate performance obligations | PerformanceObligation | 1 | ||||||
Transaction price | $ 30,000 | ||||||
Revenue earned | 2,000 | $ (1,600) | |||||
Deferred revenue | $ 0 | $ 0 | |||||
Roche [Member] | IONIS-HTT [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue earned | $ 45,000 |
Collaborative Arrangements an42
Collaborative Arrangements and Licensing Agreements, GSK (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2010USD ($)PerformanceObligation | Mar. 31, 2018USD ($)Drug | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Jul. 31, 2015PerformanceObligation | |
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Number of separate performance obligations | PerformanceObligation | 1 | ||||
Revenue earned | $ 144,419 | $ 115,800 | |||
Deferred revenue | $ 233,362 | ||||
R&D Revenue Under Collaborative Agreements [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Revenue earned | $ 102,396 | 107,999 | |||
GSK [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Upfront payment recorded as deferred revenue | $ 35,000 | ||||
Number of antisense drugs in development | Drug | 2 | ||||
Maximum amount of payments receivable for license fees and substantive milestones | $ 262,000 | ||||
Maximum amount of payments receivable for development milestones | 47,500 | ||||
Maximum amount of payments receivable for regulatory milestones | 120,000 | ||||
Maximum amount of payments receivable for commercialization milestones | 70,000 | ||||
Number of separate performance obligations | PerformanceObligation | 1 | ||||
Transaction price | $ 35,000 | ||||
Deferred revenue | 0 | $ 0 | |||
GSK [Member] | Minimum [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Cumulative payments received | 162,000 | ||||
GSK [Member] | Maximum [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Next prospective milestone | 15,000 | ||||
GSK [Member] | R&D Revenue Under Collaborative Agreements [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Revenue earned | $ 100 | $ 6,800 |
Segment Information and Conce43
Segment Information and Concentration of Business Risk, Segment Information (Details) $ in Thousands | Jul. 19, 2017 | Mar. 31, 2018USD ($)Segment | Mar. 31, 2017USD ($) | Jul. 18, 2017 | Apr. 30, 2018 | Dec. 31, 2017USD ($) |
Segment Information [Abstract] | ||||||
Number of reportable segments | Segment | 2 | |||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 144,419 | $ 115,800 | ||||
Total operating expenses | 147,720 | 96,315 | ||||
Income (loss) from operations | (3,301) | 19,485 | ||||
Total assets as of current period | 1,299,560 | $ 1,322,774 | ||||
Commercial Revenue [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 42,023 | 7,801 | ||||
SPINRAZA Royalties [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 41,081 | 5,211 | ||||
Licensing and Other Royalty Revenue [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 942 | 2,590 | ||||
R&D Revenue Under Collaborative Agreements [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 102,396 | $ 107,999 | ||||
Akcea [Member] | ||||||
Segment Information [Abstract] | ||||||
Percentage ownership before IPO | 100.00% | 100.00% | ||||
Percentage ownership after IPO | 68.00% | |||||
Percentage ownership | 68.00% | |||||
Akcea [Member] | Subsequent Event [Member] | ||||||
Segment Information [Abstract] | ||||||
Percentage ownership | 75.00% | |||||
Operating Segments [Member] | Ionis Core [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 132,540 | $ 161,183 | ||||
Total operating expenses | 105,544 | 78,352 | ||||
Income (loss) from operations | 26,996 | 82,831 | ||||
Total assets as of current period | 1,349,044 | 1,342,578 | ||||
Operating Segments [Member] | Ionis Core [Member] | Commercial Revenue [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 42,023 | 7,801 | ||||
Operating Segments [Member] | Ionis Core [Member] | SPINRAZA Royalties [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 41,081 | 5,211 | ||||
Operating Segments [Member] | Ionis Core [Member] | Licensing and Other Royalty Revenue [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 942 | 2,590 | ||||
Operating Segments [Member] | Ionis Core [Member] | R&D Revenue Under Collaborative Agreements [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 90,517 | 153,382 | ||||
Operating Segments [Member] | Akcea Therapeutics [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 17,108 | 6,094 | ||||
Total operating expenses | 47,435 | 69,470 | ||||
Income (loss) from operations | (30,327) | (63,376) | ||||
Total assets as of current period | 252,466 | 268,804 | ||||
Operating Segments [Member] | Akcea Therapeutics [Member] | Commercial Revenue [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments [Member] | Akcea Therapeutics [Member] | SPINRAZA Royalties [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments [Member] | Akcea Therapeutics [Member] | Licensing and Other Royalty Revenue [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Operating Segments [Member] | Akcea Therapeutics [Member] | R&D Revenue Under Collaborative Agreements [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 17,108 | 6,094 | ||||
Elimination of Intercompany Activity [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | (5,229) | (51,477) | ||||
Total operating expenses | (5,259) | (51,507) | ||||
Income (loss) from operations | 30 | 30 | ||||
Total assets as of current period | (301,950) | $ (288,608) | ||||
Elimination of Intercompany Activity [Member] | Commercial Revenue [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Elimination of Intercompany Activity [Member] | SPINRAZA Royalties [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Elimination of Intercompany Activity [Member] | Licensing and Other Royalty Revenue [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | ||||
Elimination of Intercompany Activity [Member] | R&D Revenue Under Collaborative Agreements [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ (5,229) | $ (51,477) |
Segment Information and Conce44
Segment Information and Concentration of Business Risk, Revenue from Significant Partners (Details) - Partner | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Revenue [Member] | Customer Concentration [Member] | Partner A [Member] | |||
Significant Partners [Abstract] | |||
Concentration percentage | 47.00% | 4.00% | |
Revenue [Member] | Customer Concentration [Member] | Partner B [Member] | |||
Significant Partners [Abstract] | |||
Concentration percentage | 36.00% | 25.00% | |
Revenue [Member] | Customer Concentration [Member] | Partner C [Member] | |||
Significant Partners [Abstract] | |||
Concentration percentage | 12.00% | 5.00% | |
Revenue [Member] | Customer Concentration [Member] | Partner D [Member] | |||
Significant Partners [Abstract] | |||
Concentration percentage | 0.00% | 56.00% | |
Contracts Receivables [Member] | Credit Concentration [Member] | Significant Partners [Member] | |||
Significant Partners [Abstract] | |||
Concentration percentage | 87.00% | 84.00% | |
Number of significant partners | 1 | 2 |