Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 20, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | Ionis Pharmaceuticals, Inc. | ||
Entity Central Index Key | 0000874015 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 7,483,343,134 | ||
Entity Common Stock, Shares Outstanding | 139,219,800 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-19125 | ||
Entity Tax Identification Number | 33-0336973 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 2855 Gazelle Court | ||
Entity Address, City or Town | Carlsbad | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92010 | ||
City Area Code | 760 | ||
Local Phone Number | 931-9200 | ||
Title of 12(b) Security | Common Stock, $.001 Par Value | ||
Trading Symbol | IONS | ||
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 683,287 | $ 278,820 |
Short-term investments | 1,816,257 | 1,805,252 |
Contracts receivable | 63,034 | 12,759 |
Inventories | 18,180 | 8,582 |
Other current assets | 139,839 | 102,473 |
Total current assets | 2,720,597 | 2,207,886 |
Property, plant and equipment, net | 153,651 | 132,160 |
Patents, net | 25,674 | 24,032 |
Long-term deferred tax assets | 305,557 | 290,796 |
Deposits and other assets | 27,633 | 12,910 |
Total assets | 3,233,112 | 2,667,784 |
Current liabilities: | ||
Accounts payable | 16,067 | 28,660 |
Accrued compensation | 37,357 | 29,268 |
Accrued liabilities | 66,769 | 47,503 |
Income taxes payable | 32,514 | 858 |
Current portion of long-term obligations | 2,026 | 13,749 |
Current portion of deferred contract revenue | 118,272 | 160,256 |
Total current liabilities | 273,005 | 280,294 |
Long-term deferred contract revenue | 490,060 | 567,359 |
Long-term obligations, less current portion | 15,543 | 4,914 |
Long-term mortgage debt | 59,913 | 59,842 |
Total liabilities | 1,548,565 | 1,480,624 |
Stockholders' equity: | ||
Common stock, $0.001 par value; 300,000,000 shares authorized, 140,339,615 and 137,928,828 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively | 140 | 138 |
Additional paid-in capital | 2,203,778 | 2,047,250 |
Accumulated other comprehensive loss | (25,290) | (32,016) |
Accumulated deficit | (707,534) | (967,293) |
Total Ionis stockholders' equity | 1,471,094 | 1,048,079 |
Noncontrolling interest in Akcea Therapeutics, Inc. | 213,453 | 139,081 |
Total stockholders' equity | 1,684,547 | 1,187,160 |
Total liabilities and stockholders' equity | 3,233,112 | 2,667,784 |
0.125 Percent Convertible Senior Notes [Member] | ||
Current liabilities: | ||
Convertible senior notes | 434,711 | 0 |
1 Percent Convertible Senior Notes [Member] | ||
Current liabilities: | ||
Convertible senior notes | $ 275,333 | $ 568,215 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
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) | 140,339,615 | 137,928,828 |
Common stock, shares outstanding (in shares) | 140,339,615 | 137,928,828 |
0.125 Percent Convertible Senior Notes [Member] | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Interest rate on convertible senior notes | 0.125% | 0.125% |
1 Percent Convertible Senior Notes [Member] | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Interest rate on convertible senior notes | 1.00% | 1.00% |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||
Revenue | $ 1,122,599 | $ 599,674 | $ 514,179 |
Expenses: | |||
Cost of products sold | 4,384 | 1,820 | 0 |
Research, development and patent | 465,688 | 414,604 | 374,644 |
Selling, general and administrative | 286,644 | 244,622 | 108,488 |
Total operating expenses | 756,716 | 661,046 | 483,132 |
Income (loss) from operations | 365,883 | (61,372) | 31,047 |
Other income (expense): | |||
Investment income | 52,205 | 30,187 | 8,179 |
Interest expense | (48,768) | (44,789) | (44,752) |
Loss on extinguishment of financing liability for leased facility | 0 | 0 | (7,689) |
Loss on early retirement of debt | (21,865) | 0 | 0 |
Other expenses | (686) | (182) | (3,548) |
Income (loss) before income tax benefit (expense) | 346,769 | (76,156) | (16,763) |
Income tax benefit (expense) | (43,507) | 291,141 | 5,980 |
Net income (loss) | 303,262 | 214,985 | (10,783) |
Net (income) loss attributable to noncontrolling interest in Akcea Therapeutics, Inc. | (9,116) | 58,756 | 11,129 |
Net income attributable to Ionis Pharmaceuticals, Inc. common stockholders | $ 294,146 | $ 273,741 | $ 346 |
Basic net income per share (in dollars per share) | $ 2.12 | $ 2.09 | $ 0.15 |
Shares used in computing basic net income per share (in shares) | 139,998 | 132,320 | 124,016 |
Diluted net income per share (in dollars per share) | $ 2.08 | $ 2.07 | $ 0.15 |
Shares used in computing diluted net income per share (in shares) | 142,872 | 134,056 | 126,098 |
Commercial Revenue [Member] | |||
Revenue: | |||
Revenue | $ 352,450 | $ 254,922 | $ 120,014 |
SPINRAZA Royalties [Member] | |||
Revenue: | |||
Revenue | 292,992 | 237,930 | 112,540 |
Product Sales, Net [Member] | |||
Revenue: | |||
Revenue | 42,253 | 2,237 | 0 |
Licensing and Other Royalty Revenue [Member] | |||
Revenue: | |||
Revenue | 17,205 | 14,755 | 7,474 |
Research and Development Revenue Under Collaborative Agreements [Member] | |||
Revenue: | |||
Revenue | $ 770,149 | $ 344,752 | $ 394,165 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | |||
Net income (loss) | $ 303,262 | $ 214,985 | $ (10,783) |
Unrealized gains (losses) on investments, net of tax | 6,633 | (280) | (960) |
Reclassification adjustment for realized gains included in net income (loss) | 0 | 0 | (374) |
Currency translation adjustment | 93 | 23 | (67) |
Comprehensive income (loss) | 309,988 | 214,728 | (12,184) |
Comprehensive income (loss) attributable to noncontrolling interest in Akcea Therapeutics, Inc. | 9,118 | (58,781) | (11,224) |
Comprehensive income (loss) attributable to Ionis Pharmaceuticals, Inc. common stockholders | $ 300,870 | $ 273,509 | $ (960) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Common Stock [Member]Novartis [Member] | Common Stock [Member]Biogen Inc. [Member] | Additional Paid In Capital [Member] | Additional Paid In Capital [Member]Novartis [Member] | Additional Paid In Capital [Member]Biogen Inc. [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Other Comprehensive Loss [Member]Novartis [Member] | Accumulated Other Comprehensive Loss [Member]Biogen Inc. [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]Novartis [Member] | Accumulated Deficit [Member]Biogen Inc. [Member] | Total Ionis Stockholders' Equity [Member] | Total Ionis Stockholders' Equity [Member]Novartis [Member] | Total Ionis Stockholders' Equity [Member]Biogen Inc. [Member] | Noncontrolling Interest in Akcea Therapeutics, Inc. [Member] | Noncontrolling Interest in Akcea Therapeutics, Inc. [Member]Novartis [Member] | Noncontrolling Interest in Akcea Therapeutics, Inc. [Member]Biogen Inc. [Member] | Total | Novartis [Member] | Biogen Inc. [Member] |
Balance at Dec. 31, 2016 | $ 122 | $ 1,311,229 | $ (30,358) | $ (1,241,380) | $ 39,613 | $ 0 | $ 39,613 | ||||||||||||||
Balance (in shares) at Dec. 31, 2016 | 121,636 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | $ 0 | 0 | 0 | 346 | 346 | 0 | 346 | ||||||||||||||
Change in unrealized gains (losses), net of tax | 0 | 0 | (1,334) | 0 | (1,334) | 0 | (1,334) | ||||||||||||||
Foreign currency translation | 0 | 0 | (67) | 0 | (67) | 0 | (67) | ||||||||||||||
Stock purchase | $ 2 | $ 71,737 | $ 0 | $ 0 | $ 71,739 | $ 0 | $ 71,739 | ||||||||||||||
Stock purchase (in shares) | 1,631 | ||||||||||||||||||||
Issuance of common stock in connection with employee stock plans | $ 1 | 22,931 | 0 | 0 | 22,932 | 0 | 22,932 | ||||||||||||||
Issuance of common stock in connection with employee stock plans (in shares) | 1,709 | ||||||||||||||||||||
Stock-based compensation expense | $ 0 | 85,975 | 0 | 0 | 85,975 | 0 | 85,975 | ||||||||||||||
Issuance of Akcea Therapeutics, Inc. common stock in conjunction with intial public offering | $ 0 | 157,270 | 0 | 0 | 157,270 | 0 | 157,270 | ||||||||||||||
Issuance of Akcea Therapeutics, Inc. common stock in conjunction with intial public offering (in shares) | 0 | ||||||||||||||||||||
Noncontrolling interest in Akcea Therapeutics, Inc. in conjunction with initial public offering | $ 0 | (90,351) | 0 | 0 | (90,351) | 90,381 | 30 | ||||||||||||||
Noncontrolling interest in Akcea Therapeutics, Inc. | 0 | (5,110) | 0 | 0 | (5,110) | (6,114) | (11,224) | ||||||||||||||
Balance at Dec. 31, 2017 | $ 125 | 1,553,681 | (31,759) | (1,241,034) | 281,013 | 84,267 | 365,280 | ||||||||||||||
Balance (in shares) at Dec. 31, 2017 | 124,976 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | $ 0 | 0 | 0 | 273,741 | 273,741 | 0 | 273,741 | ||||||||||||||
Change in unrealized gains (losses), net of tax | 0 | 0 | (280) | 0 | (280) | 0 | (280) | ||||||||||||||
Foreign currency translation | 0 | 0 | 23 | 0 | 23 | 0 | 23 | ||||||||||||||
Stock purchase | $ 11 | $ 447,954 | $ 0 | $ 0 | $ 447,965 | $ 0 | $ 447,965 | ||||||||||||||
Stock purchase (in shares) | 11,502 | ||||||||||||||||||||
Issuance of common stock in connection with employee stock plans | $ 2 | 27,898 | 0 | 0 | 27,900 | 0 | 27,900 | ||||||||||||||
Issuance of common stock in connection with employee stock plans (in shares) | 1,451 | ||||||||||||||||||||
Stock-based compensation expense | $ 0 | 131,312 | 0 | 0 | 131,312 | 0 | 131,312 | ||||||||||||||
Noncontrolling interest in Akcea Therapeutics, Inc. | 0 | (113,595) | 0 | 0 | (113,595) | 54,814 | (58,781) | ||||||||||||||
Balance at Dec. 31, 2018 | $ 138 | 2,047,250 | (32,016) | (967,293) | 1,048,079 | 139,081 | 1,187,160 | ||||||||||||||
Balance (in shares) at Dec. 31, 2018 | 137,929 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | $ 0 | 0 | 0 | 294,146 | 294,146 | 0 | 294,146 | ||||||||||||||
Change in unrealized gains (losses), net of tax | 0 | 0 | 6,633 | 0 | 6,633 | 0 | 6,633 | ||||||||||||||
Foreign currency translation | 0 | 0 | 93 | 0 | 93 | 0 | 93 | ||||||||||||||
Issuance of common stock in connection with employee stock plans | $ 3 | 119,654 | 0 | 0 | 119,657 | 0 | 119,657 | ||||||||||||||
Issuance of common stock in connection with employee stock plans (in shares) | 3,100 | ||||||||||||||||||||
1 percent convertible senior notes retirement, equity portion, net of tax | $ 0 | (77,331) | 0 | 0 | (77,331) | 0 | (77,331) | ||||||||||||||
0.125 percent convertible senior notes, equity portion, net of issuance costs and tax | 0 | 81,877 | 0 | 0 | 81,877 | 0 | 81,877 | ||||||||||||||
Issuance of warrants | 0 | 56,110 | 0 | 0 | 56,110 | 0 | 56,110 | ||||||||||||||
Purchase of note hedges, net of tax | 0 | (85,860) | 0 | 0 | (85,860) | 0 | (85,860) | ||||||||||||||
Repurchases and retirements of common stock | $ (1) | 0 | 0 | (34,387) | (34,388) | 0 | (34,388) | ||||||||||||||
Repurchases and retirements of common stock (in shares) | (535) | ||||||||||||||||||||
Stock-based compensation expense | $ 0 | 146,574 | 0 | 0 | 146,574 | 0 | 146,574 | ||||||||||||||
Payments of tax withholdings related to vesting of employee stock awards and exercise of employee stock options | $ 0 | (19,242) | 0 | 0 | (19,242) | 0 | (19,242) | ||||||||||||||
Payments of tax withholdings related to vesting of employee stock awards and exercise of employee stock options (in shares) | (154) | ||||||||||||||||||||
Noncontrolling interest in Akcea Therapeutics, Inc. | $ 0 | (65,254) | 0 | 0 | (65,254) | 74,372 | 9,118 | ||||||||||||||
Balance at Dec. 31, 2019 | $ 140 | $ 2,203,778 | $ (25,290) | $ (707,534) | $ 1,471,094 | $ 213,453 | $ 1,684,547 | ||||||||||||||
Balance (in shares) at Dec. 31, 2019 | 140,340 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
1 Percent Convertible Senior Notes [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Interest rate on convertible senior notes | 1.00% | 1.00% | 1.00% | 1.00% |
0.125 Percent Convertible Senior Notes [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Interest rate on convertible senior notes | 0.125% | 0.125% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net income (loss) | $ 303,262 | $ 214,985 | $ (10,783) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||
Depreciation | 12,540 | 10,706 | 6,708 |
Amortization of right-of-use operating lease assets | 1,542 | 0 | 0 |
Amortization of patents | 1,912 | 1,822 | 1,641 |
Amortization of premium (discount) on investments, net | (7,485) | (1,013) | 6,752 |
Amortization of debt issuance costs | 1,942 | 1,810 | 1,616 |
Amortization of convertible senior notes discount | 37,338 | 33,363 | 30,920 |
Amortization of long-term financing liability for leased facility | 0 | 0 | 3,659 |
Stock-based compensation expense | 146,574 | 131,312 | 85,975 |
Gain on investment in Regulus Therapeutics, Inc. | 0 | 0 | (374) |
Loss on extinguishment of financing liability for leased facility | 0 | 0 | 7,689 |
Loss on early retirement of debt | 21,865 | 0 | 0 |
Deferred income taxes (including benefit from valuation allowance release) | (7,096) | (290,516) | 0 |
Non-cash losses related to patents, licensing, property, plant and equipment and investments | 2,034 | 1,012 | 3,302 |
Changes in operating assets and liabilities: | |||
Contracts receivable | (47,674) | 47,595 | 45,088 |
Inventories | (5,411) | 1,400 | (2,493) |
Other current and long-term assets | (44,659) | (29,348) | (58,367) |
Long-term income tax receivable | 8,418 | (223) | (9,114) |
Accounts payable | (16,343) | (655) | 1,784 |
Income taxes | 31,656 | (710) | 435 |
Accrued compensation | 8,089 | 4,117 | 965 |
Accrued liabilities and deferred rent | 16,499 | (17,023) | 28,564 |
Deferred contract revenue | (119,283) | 494,254 | 30,182 |
Net cash provided by operating activities | 345,720 | 602,888 | 174,149 |
Investing activities: | |||
Purchases of short-term investments | (1,946,726) | (1,794,735) | (877,810) |
Proceeds from sale of short-term investments | 1,951,734 | 882,824 | 557,369 |
Purchases of property, plant and equipment | (30,905) | (13,608) | (34,764) |
Acquisition of licenses and other assets, net | (5,377) | (4,044) | (3,093) |
Purchase of strategic investments | (10,000) | 0 | (2,500) |
Proceeds from the sale of Regulus Therapeutics, Inc. | 0 | 0 | 2,507 |
Net cash (used in) provided by investing activities | (41,274) | (929,563) | (358,291) |
Financing activities: | |||
Proceeds from equity, net | 119,657 | 27,900 | 22,931 |
Payments of tax withholdings related to vesting of employee stock awards and exercise of employee stock options | (19,242) | 0 | 0 |
Proceeds from the issuance of 0.125 percent convertible senior notes | 109,500 | 0 | 0 |
0.125 percent convertible senior notes issuance costs | (10,428) | 0 | 0 |
Proceeds from issuance of warrants | 56,110 | 0 | 0 |
Purchase of note hedges | (108,684) | 0 | 0 |
Repurchases and retirements of common stock | (34,392) | 0 | 0 |
Principal payments on debt and capital lease obligations | (12,500) | 0 | (3,599) |
Proceeds from issuance of common stock in Akcea Therapeutics, Inc. from its initial public offering, net of underwriters' discount | 0 | 0 | 110,438 |
Proceeds from building mortgage debt, net of issuance costs | 0 | 0 | 59,750 |
Proceeds from the sale of Akcea Therapeutics, Inc. common stock to Novartis in a private placement | 0 | 0 | 50,000 |
Offering costs paid | 0 | 0 | (2,037) |
Payment to settle financing liability for leased facility | 0 | 0 | (80,133) |
Net cash provided by financing activities | 100,021 | 475,865 | 229,087 |
Net increase in cash and cash equivalents | 404,467 | 149,190 | 44,945 |
Cash and cash equivalents at beginning of year | 278,820 | 129,630 | 84,685 |
Cash and cash equivalents at end of year | 683,287 | 278,820 | 129,630 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 9,870 | 9,592 | 8,035 |
Income taxes paid | 9,041 | 0 | 0 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Right-of-use assets obtained in exchange for lease liabilities | 14,178 | 0 | 0 |
Amounts accrued for capital and patent expenditures | 3,126 | 4,428 | 1,983 |
Purchases of property, plant and equipment included in long-term obligations | 0 | 3,350 | 0 |
0.125 percent convertible senior notes principal issued related to our December 2019 debt exchange/issuance | 439,326 | 0 | 0 |
1 percent convertible senior notes principal extinguished related to our December 2019 debt exchange | 375,590 | 0 | 0 |
Biogen [Member] | |||
Financing activities: | |||
Proceeds from the issuance of common stock | 0 | 447,965 | 0 |
Novartis [Member] | |||
Financing activities: | |||
Proceeds from the issuance of common stock | $ 0 | $ 0 | $ 71,737 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
0.125 Percent Convertible Senior Notes [Member] | ||||
Supplemental disclosures of non-cash investing and financing activities: | ||||
Interest rate on convertible senior notes | 0.125% | 0.125% | ||
1 Percent Convertible Senior Notes [Member] | ||||
Supplemental disclosures of non-cash investing and financing activities: | ||||
Interest rate on convertible senior notes | 1.00% | 1.00% | 1.00% | 1.00% |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization and Significant Accounting Policies [Abstract] | |
Organization and Significant Accounting Policies | 1. Organization and Significant Accounting Policies Basis of Presentation In our consolidated financial statements we included the accounts of Ionis Pharmaceuticals, Inc. (“we”, “us” or “our”) and the consolidated results of our majority-owned affiliate, Akcea Therapeutics, Inc., which we formed in December 2014. In July 2017, Akcea completed an initial public offering, or IPO. Since Akcea’s IPO, our ownership has ranged from to . At December 31, 2019, o Rx Refer to the section titled “Noncontrolling Interest in Akcea” in Note 2, Significant Accounting Policies, for further information related to our accounting for our investment in Akcea. Organization and Business Activity We incorporated in California on January 10, 1989. In conjunction with our IPO, we reorganized as a Delaware corporation in April 1991. We were organized principally to develop human therapeutic medicines using antisense technology. In December 2015, we changed our name from Isis Pharmaceuticals, Inc. to Ionis Pharmaceuticals, Inc. Basic and Diluted Net Income per Share Basic net income per share We compute basic net income per share by dividing the total net income attributable to our common stockholders by our weighted-average number of common shares outstanding during the period. The calculation of total net income attributable to our common stockholders for each year considered our net income for Ionis on a stand-alone basis plus our share of Akcea’s net income (loss) for the period. To calculate the portion of Akcea’s net income (loss) attributable to our ownership for each year, we multiplied Akcea’s income (loss) per share by the weighted average shares we owned in Akcea during the period. As a result of this calculation, our total net income available to Ionis common stockholders for the calculation of net income per share is different than net income attributable to Ionis Pharmaceuticals, Inc. common stockholders in our consolidated statements of operations for each year. Our basic net income per share, was calculated as follows (in thousands, except per share amounts): Year Ended December 31, 2019 Weighted Average Shares Owned in Akcea Akcea s Net Income Per Share Ionis Portion of Akcea s Net Income Common shares 70,100 $ 0.49 $ 34,073 Akcea’s net income attributable to our ownership $ 34,073 Ionis’ stand-alone net income 262,490 Net income available to Ionis common stockholders $ 296,563 Weighted average shares outstanding 139,998 Basic net income per share $ 2.12 Year Ended December 31, 2018 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 59,812 $ (2.74 ) $ (163,938 ) Akcea’s net loss attributable to our ownership $ (163,938 ) Ionis’ stand-alone net income 440,806 Net income available to Ionis common stockholders $ 276,868 Weighted average shares outstanding 132,320 Basic net income per share $ 2.09 We calculated our basic net income per share for 2017 as follows (in thousands, except per share amounts): Year Ended December 31, 2017 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 20,669 $ (3.08 ) $ (63,638 ) Preferred shares 15,748 (1.80 ) (28,346 ) Akcea’s net loss attributable to our ownership $ (91,984 ) Ionis’ stand-alone net income 110,776 Net income available to Ionis common stockholders $ 18,792 Weighted average shares outstanding 124,016 Basic net income per share $ 0.15 Prior to Akcea’s IPO in July 2017, we owned Akcea series A convertible preferred stock, which included a six percent Diluted net income per share We calculated our diluted net income per share as follows (in thousands except per share amounts): Year Ended December 31, 2019 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 296,563 139,998 $ 2.12 Effect of dilutive securities: Shares issuable upon exercise of stock options — 2,090 Shares issuable upon restricted stock award issuance — 766 Shares issuable related to our Employee Stock Purchase Plan — 18 Income available to Ionis common stockholders, plus assumed conversions $ 296,563 142,872 $ 2.08 Year Ended December 31, 2018 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 276,868 132,320 $ 2.09 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,216 Shares issuable upon restricted stock award issuance — 514 Shares issuable related to our Employee Stock Purchase Plan — 6 Income available to Ionis common stockholders, plus assumed conversions $ 276,868 134,056 $ 2.07 Year Ended December 31, 2017 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 18,792 124,016 $ 0.15 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,619 Shares issuable upon restricted stock award issuance — 459 Shares issuable related to our Employee Stock Purchase Plan — 4 Income available to Ionis common stockholders, plus assumed conversions $ 18,792 126,098 $ 0.15 For each year presented, the calculation excluded our convertible senior notes because the effect on diluted earnings per share was anti-dilutive. Revenue Recognition 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 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. We will also recognize as commercial revenue future sales milestone payments and royalties we earn under our partnerships. Commercial Revenue: Product sales, net We added product sales from TEGSEDI to our commercial revenue in the fourth quarter of 2018 and we added product sales from WAYLIVRA to our commercial revenue in the third quarter of 2019. 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. 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 manufacturing services. Our collaboration agreements are detailed in Note 6, Collaborative Arrangements and Licensing Agreements. Under each collaboration note we discuss our specific revenue recognition conclusions, including our significant performance obligations under each collaboration. 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 we enter into a collaboration agreement in which we provide our partner with an option to license a medicine 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 medicine 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 medicine or requests additional goods or services, then we identify a new performance obligation for that item. 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 material 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 and royalties. At the start of an agreement, our transaction price usually consists of only 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 and are contingent on certain future events. We reassess the total transaction price at each reporting period to determine if we should include additional payments in the transaction price. Milestone payments are our most common type of variable consideration. 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 and are usually based on scientific progress. For example, in the fourth quarter of 2019, we earned a $10 million milestone payment from AstraZeneca when AstraZeneca initiated a Phase 1 trial for ION839. We did not consider the milestone payments probable until AstraZeneca achieved the milestone event because the initiation of the Phase 1 trial was a contingent event that was not within our control. We recognized the milestone payments in full in the period the milestone event was achieved because we did not have any remaining performance obligations related to the milestone payment. 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 then allocate the transaction price to each performance obligation based on the relative stand-alone selling price. 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 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 ● A 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. 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, including the time we estimate it will take us to complete the activities, 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 recognize each period. This approach requires us to make numerous estimates and use significant judgement. If our estimates or judgements change over the course of the collaboration, they may affect the timing and amount of revenue that we recognize in the current and future periods. For example, 2013 Strategic Neurology collaboration with Biogen significant portion of the research and development services. We expect to complete the remainder of our services in 2020. As a result of our change in estimate, in the third quarter of 2019, we recorded a cumulative catch up adjustment of $ million to decrease revenue. Refer to Note 7, Collaborative Arrangements and Licensing Agreements , for further discussion of the cumulative catch up adjustment we made. The following are examples of when we typically recognize revenue based on the types of payments we receive. Commercial Revenue: SPINRAZA royalties and Licensing and other royalty revenue We recognize royalty revenue, including royalties from SPINRAZA sales, in the period in which the counterparty sells the related product and recognizes the related revenue, which in certain cases may require us to estimate our royalty revenue. Commercial Revenue: Product sales, net We recognize product sales in the period Reserves for Product sales We record product sales at our net sales price, or transaction price. We include in our transaction price estimated reserves for discounts, returns, chargebacks, rebates, co-pay assistance and other allowances that we offer within contracts between us and our customers, wholesalers, health care providers and other indirect customers. We estimate our reserves using the amounts we have earned or what we can claim on the associated sales. We classify our reserves as a reduction of accounts receivable when we are not required to make a payment or as a current liability when we are required to make a payment. In certain cases, our estimates include a range of possible outcomes that are probability-weighted for relevant factors such as our historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. Overall, our reserves reflect our best estimates under the terms of our respective contracts. When calculating our reserves and related product sales, we only recognize amounts to the extent that we consider it probable that we would not have to reverse in a future period a significant amount of the cumulative sales we previously recognized. The actual amounts we receive may ultimately differ from our reserve estimates. If actual amounts in the future vary from our estimates, we will adjust these estimates, which would affect our net product sales in the respective period. The following are the components of variable consideration related to product sales: Chargebacks: Government rebates : We are subject t Managed care rebates: Trade discounts: Distribution services Product returns: Other incentives: Research and development revenue under collaboration agreements: 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 collaboration agreement with Roche to develop IONIS-FB-L Rx for the treatment of complement-mediated diseases Milestone payments We are required to include additional consideration in the transaction price when it is probable. We typically include milestone payments for R&D services in the transaction price when they are achieved. We include these milestone payments when they are achieved because there is considerable uncertainty in the research and development processes that trigger these payments. Similarly, we include approval milestone payments in the transaction price once the medicine is approved by the applicable regulatory agency. We will recognize sales-based milestone payments in the period in which we achieve the milestone under the sales-based royalty exception allowed under accounting rules. We recognize milestone payments that relate to an ongoing performance obligation over our period of performance. For example, in the fourth quarter of 2019, we achieved two $7.5 million milestone payments from Biogen when we advanced two new targets for undisclosed neurological diseases under our 2018 strategic neurology collaboration. We added these payments to the transaction price and allocated it to our R&D services performance obligation. We are recognizing revenue related to these milestone payments over our estimated period of performance. Conversely, we recognize in full those milestone payments that we earn based on our partners’ activities when our partner achieves the milestone event and we do not have a performance obligation. For example, in the fourth quarter of 2019, we recognized a $10 million milestone payment when Biogen advanced the development candidate for an undisclosed target under our 2012 neurology collaboration agreement We concluded that the milestone payment was not related to our R&D services performance obligation. Therefore, we recognized the milestone payment in full in the fourth quarter of 2019. License fees We generally recognize as revenue the total amount we determine to be the relative stand-alone selling price of a license when we deliver the license to our partner. This is because our partner has full use of the license and we do not have any additional performance obligations related to the license after delivery. Rx Rx Sublicense fees We recognize sublicense fee revenue in the period in which a party, who has already licensed our technology, further licenses the technology to another party because we do not have any performance obligations related to the sublicense. Amendments to Agreements From time to time we amend our collaboration agreements. When this occurs, 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 in the amendment are distinct from the performance obligations in the original agreement 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 and at their stand-alone selling price, we then assess whether the remaining goods or services are distinct from those already provided. If the goods and/or services are distinct from what we have already provided, 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 the goods and/or services are not distinct from what we have already provided, 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 $ 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 $ 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 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 $ million transaction price to these performance obligations. Note 7, 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 were 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 accounting guidance requires us to account for them as a combined arrangement. For example, in the second quarter of 2018, we entered into two separate agreements with Biogen at the same time: a new strategic neurology collaboration agreement and a stock purchase agreement, or SPA. We evaluated the Biogen 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. Contracts Receivable Our contracts receivable balance represents the amounts we have billed our partners or customers and that are due to us unconditionally for goods we have delivered or services we have performed. When we bill our partners or customers 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 or customer 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 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 these instances, we include the amounts in deferred revenue on our consolidated balance sheet. Cost of Products Sold Our cost of products sold includes manufacturing costs, transportation and freight costs and indirect overhead costs associated with the manufacturing and distribution of our products. We also may include certain period costs related to manufacturing services and inventory adjustments in cost of products sold. Prior to obtaining regulatory approval of TEGSEDI in July 2018 and WAYLIVRA in May 2019, we expensed as research and development expenses a significant portion of the costs we incurred to produce the initial commercial launch supply for each medicine. We previously expensed $ million and $ million of costs to produce our products related to the product sales revenue we recognized in 2019 and 2018, 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. For the years ended December 31, 2019, 2018 and 2017, research and development expenses were $461.5 million, $411.9 million and $372.5 million, respectively. A portion of the costs included in research and development expenses are costs associated with our partner agreements. For the years ended December 31, 2019, 2018 and 2017, research and development costs of approximately $83.2 million, $58.7 million and $59.5 million, respectively, were related to our partner agreements. 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 U.S. Patent and Trademark Office, or foreign equivalent, issues the patent. The weighted average remaining amortizable life of our issued patents was 10.3 years at December 31, 2019. The cost of our patents capitalized on our consolidated balance sheet at December 31, 2019 and 2018 was $34.0 million and $32.7 million, respectively. Accumulated amortization related to patents was $8.3 million and $8.7 million at December 31, 2019 and 2018, respectively. Based on our existing patents, we estimate amortization expense related to patents in each of the next five years to be the following: Year Ending December 31, Amortization (in millions) 2020 $ 1.8 2021 $ 1.8 2022 $ 1.7 2023 $ 1.6 2024 $ 1.4 We review our capitalized patent costs regularly to ensure that they include costs for patents and patent applications that have future value. When we identify patents and patent applications that we are not actively pursuing, we write off any associated costs. In 2019, 2018 and 2017, patent expenses were $4.2 million, $2.6 million and $2.1 million, respectively, and included non-cash charges related to the write-down of our patent costs to their estimated net realizable values of $2.2 million, $0.8 million and $0.4 million, respectively. Accrued Liabilities Our accrued liabilities consisted of the following (in thousands): December 31, 2019 2018 Clinical expenses $ 24,461 $ 22,125 In-licensing expenses 10,289 12,298 Other miscellaneous expenses 32,019 13,080 Total accrued liabilities $ 66,769 $ 47,503 Noncontrolling Interest in Akcea Therapeutics, Inc. Prior to Akcea’s IPO in July 2017, we owned 100 percent of Akcea. Since Akcea’s IPO, our ownership has ranged from to . At December 31, , o ● 2.8 million shares in the first quarter of 2019 as payment for the sublicense fee Akcea owed us for Novartis’s license of AKCEA-APO(a)-L Rx ● 6.9 million shares in the fourth quarter of 2019 as payment for the sublicense fee Akcea owed us for Pfizer’s license of AKCEA-ANGPTL3-L Rx The shares third parties own represent an interest in Akcea’s equity that we do control. 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 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. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, short-term investments and receivables. We place our cash equivalents and short-term investments with reputable financial institutions. We primarily invest our excess cash in commercial paper and 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. 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 on the last day of the fiscal period for identical or similar items. We record unrealized gains and losses on debt securities 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 December 31, 2019, we held equity investments in two publicly held companies, ProQR Therapeutics N.V., or ProQR, and Antisense Therapeutics Limited, or ATL. We also held equity investments in five privately-held companies, Atlantic Pharmaceuticals Limited, Dynacure SAS, Empirico, Inc., Seventh Sense Biosystems and Suzhou Ribo Life Science Co, Ltd. 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 our equity investments at fair value. Additionally, the amended accounting guidance requires |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Investments | 2. Investments The following table summarizes the contract maturity of the available-for-sale securities we held as of December 31, 2019: One year or less 70 % After one year but within two years 20 % After two years but within three and a half years 10 % Total 100 % As illustrated above, at December 31, 2019, 90 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 December 31, 2019, we had an ownership interest of less than 20 percent in five private companies and two public companies with which we conduct business. The privately-held companies are The publicly traded companies are ATL and ProQR. The following is a summary of our investments (in thousands): Gross Unrealized Estimated December 31, 2019 Cost Gains Losses Fair Value Available-for-sale securities: Corporate debt securities (2) $ 669,665 $ 1,451 $ (43 ) $ 671,073 Debt securities issued by U.S. government agencies 188,216 303 (43 ) 188,476 Debt securities issued by the U.S. Treasury (2) 327,670 232 (27 ) 327,875 Debt securities issued by states of the U.S. and political subdivisions of the states 21,065 26 (5 ) 21,086 Total securities with a maturity of one year or less 1,206,616 2,012 (118 ) 1,208,510 Corporate debt securities 428,627 2,911 (43 ) 431,495 Debt securities issued by U.S. government agencies 140,988 57 (117 ) 140,928 Debt securities issued by the U.S. Treasury 35,822 9 (12 ) 35,819 Debt securities issued by states of the U.S. and political subdivisions of the states 19,309 18 (6 ) 19,321 Total securities with a maturity of more than one year 624,746 2,995 (178 ) 627,563 Total available-for-sale securities $ 1,831,362 $ 5,007 $ (296 ) $ 1,836,073 Equity securities: Total equity securities included in other current assets (3) $ 4,712 $ - $ (870 ) $ 3,842 Total equity securities included in deposits and other assets (4) 10,000 - - 10,000 Total equity securities $ 14,712 $ - $ (870 ) $ 13,842 Total available-for-sale and equity securities $ 1,846,074 $ 5,007 $ (1,166 ) $ 1,849,915 Gross Unrealized Estimated December 31, 2018 Cost Gains Losses Fair Value Available-for-sale securities: Corporate debt securities (2) $ 956,879 $ 13 $ (1,858 ) $ 955,034 Debt securities issued by U.S. government agencies 168,839 3 (104 ) 168,738 Debt securities issued by the U.S. Treasury 244,640 15 (77 ) 244,578 Debt securities issued by states of the U.S. and political subdivisions of the states (2) 63,572 — (323 ) 63,249 Total securities with a maturity of one year or less 1,433,930 31 (2,362 ) 1,431,599 Corporate debt securities 299,018 194 (1,286 ) 297,926 Debt securities issued by U.S. government agencies 107,789 194 (109 ) 107,874 Debt securities issued by the U.S. Treasury 15,600 — (24 ) 15,576 Debt securities issued by states of the U.S. and political subdivisions of the states 16,980 — (287 ) 16,693 Total securities with a maturity of more than one year 439,387 388 (1,706 ) 438,069 Total available-for-sale securities $ 1,873,317 $ 419 $ (4,068 ) $ 1,869,668 Equity securities: Total equity securities included in other current assets (3) $ 1,212 $ 137 $ — $ 1,349 Total available-for-sale and equity securities $ 1,874,529 $ 556 $ (4,068 ) $ 1,871,017 (1) We hold our available-for-sale securities at amortized cost. (2) Includes investments classified as cash equivalents on our consolidated balance sheet. (3) Our equity securities included in other current assets consisted of our investment in ProQR, which is a public company. We recognize our public company equity securities at (4) Our equity securities included in deposits and other assets consisted of our investment in Empirico, which is a private company. We recognize our private company equity securities at on our consolidated balance sheet. Investments we consider to be temporarily impaired at December 31, 2019 are 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 49 $ 131,702 $ (75 ) $ 11,840 $ (11 ) $ 143,542 $ (86 ) Debt securities issued by U.S. government agencies 43 149,731 (136 ) 37,041 (24 ) 186,772 (160 ) Debt securities issued by the U.S. Treasury 10 84,270 (39 ) — — 84,270 (39 ) Debt securities issued by states of the U.S. and political subdivisions of the states 11 10,241 (5 ) 10,303 (6 ) 20,544 (11 ) Total temporarily impaired securities 113 $ 375,944 $ (255 ) $ 59,184 $ (41 ) $ 435,128 $ (296 ) We believe that the decline in value of our debt securities is temporary and 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 these securities to maturity. Therefore, we anticipate full recovery of our debt securities’ amortized cost basis at maturity. |
Long-Term Obligations and Commi
Long-Term Obligations and Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Obligations and Commitments [Abstract] | |
Long-Term Obligations and Commitments | 3. Long-Term Obligations and Commitments The carrying value of our long-term obligations was as follows (in thousands): December 31, 2019 2018 0.125 percent convertible senior notes $ 434,711 $ — 1 percent convertible senior notes 275,333 568,215 Long-term mortgage debt 59,913 59,842 Principal balance of fixed rate note with Morgan Stanley (1) — 12,500 Leases and other obligations 17,569 6,163 Total $ 787,526 $ 646,720 Less: current portion (2,026 ) (13,749 ) Total Long-Term Obligations $ 785,500 $ 632,971 (1) Our $12.5 million fixed rate note with Morgan Stanley was included in our current portion of long-term obligations on our consolidated balance sheet at December 31, 2018. We paid off our fixed rate note in the third quarter of 2019. Convertible Notes and Call Spread 0.125 Percent Convertible Senior Notes In December 2019, we entered into privately negotiated exchange and/or subscription agreements with certain new investors and certain holders of our existing 1% 1% n conjunction with the December 2019 exchange, we entered into a call spread transaction, which was comprised of purchasing note hedges and selling warrants, to minimize the impact of potential economic dilution upon conversion of our by increasing the effective conversion price even further. Interest is payable semi-annually on June 15 and December 15 of each year for the 0.125% 0.125% 0.125% 0.125% 0.125% At December 31, 2019, we had the following 0.125% 0.125% Notes Outstanding principal balance $ 548.8 Maturity date December 15, 2024 Interest rate 0.125 % Conversion price per share $ 83.28 Total shares of common stock subject to conversion 6.6 The following table summarizes information about the equity and liability components of our outstanding 0.125% Notes (in millions). We measured the fair values of the convertible notes outstanding based on quoted market prices, which is a Level 2 measurement at December 31, : 0.125% Notes Fair value of outstanding notes $ 558.7 Principal amount of convertible notes outstanding $ 548.8 Unamortized portion of debt discount $ 105.2 Long-term debt $ 434.7 Carrying value of equity component $ 105.8 Call Spread Additionally, i 0.125% Notes The call spread cost us $ million, of which $ million was for the note hedge purchase, offset by $ million we received for selling the warrants. We increased our effective conversion price to $ with the same number of underlying shares as our 0.125% Notes . Similar to our 0.125% Notes , our note hedges are subject to adjustment. Additionally, our note hedges are exercisable upon conversion of the 0.125% Notes . The note hedges will expire upon maturity of 0.125% Notes , or December 2024. The note hedges and warrants are separate transactions and are not part of the terms of our 0.125% Notes . The holders of the 0.125% Notes do not have any rights with respect to the note hedges and warrants. We recorded the aggregate amount paid for the note hedges and the aggregate amount received for the warrants in additional paid-in capital in our consolidated balance sheet. We excluded shares under the note hedges from our calculation of diluted earnings per share as they were antidilutive. We will include the shares issuable under the warrants in our calculation of diluted earnings per share when the average market price per share of our common stock for the reporting period exceeds the strike price of the warrants. 1 Percent Convertible Senior Notes In November 2014, we completed a $500 million offering of convertible senior notes, which mature in 2021 and bear interest at 1 percent. We used a substantial portion of the net proceeds from the issuance of the 1% Notes to repurchase $140 million in principal of our 2¾ percent convertible senior notes, or 2¾% Notes. In December 2016, we issued an additional $185.5 million of 1% Notes in exchange for the redemption of $61.1 million of our 2¾ 0.125% At December 31, 2019, we had the following 1% Notes outstanding (amounts in millions except price per share data): 1% Notes Outstanding principal balance $ 309.9 Maturity date November 30, 2021 Interest rate 1 percent Conversion price per share $ 66.81 Total shares of common stock subject to conversion 4.6 Interest is payable semi-annually in arrears on May 15 and November 15 of each year for the 1% Notes. The 1% Notes are convertible at the option of the note holders prior to July 1, 2021 only under certain conditions. On or after July 1, 2021, the 1% Notes are initially convertible into approximately 4.6 million shares of common stock at a conversion price of approximately $66.81 per share. We will settle conversions of the notes, at our election, in cash, shares of our common stock or a combination of both. We may not redeem the 1% Notes prior to maturity, and no sinking fund is provided for them. If we undergo a fundamental change, holders may require us to purchase for cash all or any portion of their 1% Notes at a purchase price equal to 100 percent of the principal amount of the notes to be purchased, plus accrued and unpaid interest to, but excluding, the fundamental change purchase date. The following table summarizes information about the equity and liability components of our outstanding Notes (in millions). We measured the fair values of the convertible notes outstanding based on quoted market prices, which is a Level 2 measurement at December 31, : December 31, 2019 2018 Fair value of outstanding notes $ 354.8 $ 725.0 Principal amount of convertible notes outstanding $ 309.9 $ 685.5 Unamortized portion of debt discount $ 32.8 $ 110.8 Long-term debt $ 275.3 $ 568.2 Carrying value of equity component $ 33.5 $ 219.0 We account for our convertible notes using an accounting standard that requires us to assign a value to our convertible debt equal to the estimated fair value of similar debt instruments without the conversion feature and to record the remaining portion in equity. As a result, we recorded our convertible notes at a discount, which we are amortizing as additional non-cash interest expense over the expected life of the respective debt. We determined our nonconvertible debt borrowing rate using a combination of the present value of the debt’s cash flows and a Black-Scholes valuation model. The following table summarizes the nonconvertible borrowing rate, effective interest rate and amortization period of our debt discount for our convertible notes: 1% Notes 0.125% Notes Nonconvertible debt borrowing rate 7.4 percent 4.4 percent Effective interest rate (1) 7.5 percent 4.9 percent Amortization period of debt discount 7 years 5 years (1) For our 1% Notes, our effective interest rate represents our effective interest rate after our December 2019 debt exchange. Our total interest expense for our outstanding senior convertible notes for the years ended December 31, 2019, 2018 and 2017 included $39.3 million, $35.2 million and $32.5 million, respectively, of non-cash interest expense related to the amortization of the debt discount and debt issuance costs for our convertible notes. Financing Arrangements 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, which we amended in February 2016. Under the amended credit agreement, Morgan Stanley provided a maximum of $30 million of revolving credit for general working capital purposes. During the third quarter of 2019, we paid off our total outstanding borrowings of $12.5 million under the agreement and subsequently terminated the 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 and our manufacturing facility for $14.0 million. We financed the purchase of these two facilities with mortgage debt of $60.4 million in total. Our primary R&D facility mortgage has an interest rate of 3.88 percent. Our manufacturing facility mortgage 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. As a result of the purchase, we extinguished the financing liability we had previously recorded on our balance sheet for our primary R&D facility. The difference between the purchase price of our primary R&D facility and the carrying value of our financing liability at the time of the purchase was $7.7 million. We recognized this amount as a non-cash loss on extinguishment of financing liability for leased facility in our consolidated results of operations in the third quarter of 2017. We previously accounted for the lease of our manufacturing facility as an operating lease. We capitalized the purchase price of the manufacturing facility as a fixed asset in the third quarter of 2017. Maturity Schedules Annual debt and other obligation maturities, including fixed and determinable interest, at December 31, 2019 are as follows (in thousands): 2020 $ 6,260 2021 316,114 2022 3,495 2023 4,180 2024 553,006 Thereafter 64,429 Subtotal $ 947,484 Less: current portion (2,026 ) Less: fixed and determinable interest (28,014 ) Less: unamortized portion of debt discount (137,975 ) Plus: lease liabilities 17,235 Total $ 796,704 Operating Leases Ionis Leases We lease a facility adjacent to our manufacturing facility that has laboratory and office space that we use to support our manufacturing facility. We lease this space under a non-cancelable operating lease with an initial term ending in June 2021 and an option to extend the lease for up to two five-year periods. We also lease additional office spaces. We sublease a portion of one of these spaces to Akcea. We lease these spaces under non-cancelable operating leases with initial terms ending in 2023 with options to extend the leases for one five-year period. The sublease with Akcea is eliminated in our consolidated financial statements. Akcea Lease Akcea entered into an operating lease agreement for office space located in Boston, Massachusetts for its new corporate headquarters in the second quarter of 2018. The lease commencement date was in August 2018 and Akcea took occupancy in September 2018. Akcea is leasing this space under a non-cancelable operating lease with an initial term ending after 123 months and an option to extend the lease for an additional five-year term. Under the lease agreement, Akcea received a three-month free rent period, which commenced on August 15, 2018, and a tenant improvement allowance up to $3.8 million. Akcea provided the lessor with a letter of credit to secure its obligations under the lease in the initial amount of $2.4 million, to be reduced to $1.8 million on the third anniversary of the rent commencement date and to $1.2 million on the fifth anniversary of the rent commencement date if Akcea meets certain conditions set forth in the lease at each such time. When we determined our lease term for our operating lease right-of-use assets and lease liabilities for these leases, we did not include the extension options for these leases. Amounts related to our operating leases were as follows (dollar amounts in millions): At December 31, 2019 Right-of-use operating lease assets (1) $ 12.6 Operating lease liabilities (2) $ 17.2 Weighted average remaining lease term 8.1 years Weighted average discount rate 7.6 % (1) Included in deposits and other assets (2) Current portion of $2.0 million was included in current portion of long-term obligations long-term obligations During the year ended December 31, 2019, we paid $3.9 million of lease payments, which was included in operating activities in our consolidated statement of cash flows. As of December 31, 2019, the future payments for our operating lease liabilities are as follows (in thousands): Operating Leases Year ending December 31, $ 2020 3,285 2021 3,022 2022 2,781 2023 2,520 2024 2,396 Thereafter 9,465 Total minimum lease payments 23,469 Less: Imputed interest (6,234 ) Total operating lease liabilities $ 17,235 Rent expense was $3.6 million, $2.6 million and $1.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 4. Stockholders Equity Preferred Stock We are authorized to issue up to 15 million shares of “blank check” Preferred Stock. As of December 31, 2019, there were no shares of Preferred Stock outstanding. We have designated Series C Junior Participating Preferred Stock but have no issued or outstanding shares as of December 31, 2019. Common Stock At December 31, 2019 and 2018, we had 300 million shares of common stock authorized, of which 140.3 million and 137.9 million were issued and outstanding, respectively. As of December 31, 2019, total common shares reserved for future issuance were 26.2 million. During the years ended December 31, 2019, 2018 and 2017, we issued 3.1 million, 1.5 million and 1.7 million shares of common stock, respectively, for stock option exercises, vesting of restricted stock units, and ESPP purchases. We received net proceeds from these transactions of $119.7 million, $27.9 million and $22.9 million in 2019, 2018 and 2017, respectively. Share Repurchase Program In September 2019, our board of directors approved an initial share repurchase program of up to $125 million of our common stock. Our stock repurchase program has no expiration date. Through December 31, 2019, we repurchased 535,000 shares for $34.4 million. In the first quarter of 2020, we repurchased an additional 1.5 million shares for $90.6 million. Stock Plans 1989 Stock Option Plan In June 1989, our Board of Directors adopted, and the stockholders subsequently approved, a stock option plan that, as amended, provides for the issuance of non-qualified and incentive stock options for the purchase of up to 20.0 million shares of common stock to our employees, directors, and consultants. The plan expires in January 2024. The 1989 Plan does not allow us to grant stock bonuses or restricted stock awards and prohibits us from repricing any options outstanding under the plan unless our stockholders approve the repricing. Options vest over a four-year period, with 25 percent exercisable at the end of one year from the date of the grant and the balance vesting ratably, on a monthly basis, thereafter and have a term of seven years. At December 31, 2019, a total of 0.1 million options were outstanding, of which options to purchase 0.1 million shares were exercisable, and 0.04 million shares were available for future grant under the 1989 Plan. 2011 Equity Incentive Plan In March 2011, our Board of Directors adopted, and the stockholders subsequently approved, a stock option plan that provides for the issuance of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, and performance cash awards to our employees, directors, and consultants. In June 2015, May 2017 and June 2019, after receiving approval from our stockholders, we amended our 2011 Equity Incentive Plan to increase the total number of shares reserved for issuance. We increased the shares available under our 2011 Equity Incentive Plan from 5.5 million to 11.0 million in June 2015, from 11.0 million to 16.0 million in May 2017 and from 16.0 million to 23.0 million in June 2019. The plan expires in June 2021. The 2011 Plan does not allow us to reduce the exercise price of any outstanding stock options or stock appreciation rights or cancel any outstanding stock options or stock appreciation rights that have an exercise price or strike price greater than the current fair market value of the common stock in exchange for cash or other stock awards unless our stockholders approve such action. Currently we anticipate awarding only options and restricted stock unit awards to our employees, directors and consultants. Under the 2011 Plan, stock options cannot vest in a period of less than two years and restricted stock unit awards cannot vest in a period of less than three years. We have granted restricted stock unit awards to our employees under the 2011 Plan which vest annually over a four-year period. At December 31, 2019, a total of 10.0 million options were outstanding, of which 5.4 million were exercisable, 1.7 million restricted stock unit awards were outstanding, and 7.4 million shares were available for future grant under the 2011 Plan. Under the 2011 Plan, we may issue a stock award with additional acceleration of vesting and exercisability upon or after a change in control. In the absence of such provisions, no such acceleration will occur. The stock options and restricted stock unit awards we issue to Dr. Stanley T. Crooke in his former role as chief executive officer and issued to B. Lynne Parshall in her former role as chief operating officer will accelerate upon a change of control, as defined in the 2011 Plan. In addition, we implemented a change of control and severance benefit plan that provides for change of control and severance benefits to our executive officers, including our chief executive officer and chief financial officer. If we terminate one of our executive officers or if an executive officer resigns for good reason during the period that begins three months before and ends twelve months following a change in control of the company, the impacted executive officers’ stock options and RSUs vesting will accelerate for options and RSUs outstanding as of the termination date. Corporate Transactions and Change in Control under 2011 Plan In the event of certain significant corporate transactions, our Board of Directors has the discretion to take one or more of the following actions with respect to outstanding stock awards under the 2011 Plan: ● arrange for assumption, continuation, or substitution of a stock award by a surviving or acquiring entity (or its parent company); ● arrange for the assignment of any reacquisition or repurchase rights applicable to any shares of our common stock issued pursuant to a stock award to the surviving or acquiring corporation (or its parent company); ● accelerate the vesting and exercisability of a stock award followed by the termination of the stock award; ● arrange for the lapse of any reacquisition or repurchase rights applicable to any shares of our common stock issued pursuant to a stock award; ● cancel or arrange for the cancellation of a stock award, to the extent not vested or not exercised prior to the effective date of the corporate transaction, in exchange for cash consideration, if any, as the Board, in its sole discretion, may consider appropriate; and ● arrange for the surrender of a stock award in exchange for a payment equal to the excess of (a) the value of the property the holder of the stock award would have received upon the exercise of the stock award, over (b) any exercise price payable by such holder in connection with such exercise. 2002 Non-Employee Directors’ Stock Option Plan In September 2001, our Board of Directors adopted, and the stockholders subsequently approved, an amendment and restatement of the 1992 Non-Employee Directors’ Stock Option Plan, which provides for the issuance of non-qualified stock options and restricted stock units to our non-employee directors. The name of the resulting plan is the 2002 Non-Employee Directors’ Stock Option Plan, or the 2002 Plan. In June 2015, after receiving approval from our stockholders, we amended our 2002 Non-Employee Directors Stock Option Plan to increase the total number of shares reserved for issuance. We increased the shares available under our 2002 Non-Employee Directors Stock Option Plan from 1.2 million to 2.0 million. Options under this plan expire 10 years from the date of grant. Options granted become exercisable in four equal annual installments beginning one year after the date of grant. At December 31, 2019, a total of 0.9 million options were outstanding, of which 0.5 million were exercisable, 0.1 million restricted stock unit awards were outstanding, and 0.1 million shares were available for future grant under the 2002 Plan. Employee Stock Purchase Plan In June 2009, our Board of Directors adopted, and the stockholders subsequently approved, the amendment and restatement of the ESPP and we reserved an additional 150,000 shares of common stock for issuance thereunder. In each of the subsequent years, we reserved an additional 150,000 shares of common stock for the ESPP resulting in a total of 3.7 million shares authorized under the plan as of December 31, 2019. The ESPP permits full-time employees to purchase common stock through payroll deductions (which cannot exceed 10 percent of each employee’s compensation) at the lower of 85 percent of fair market value at the beginning of the purchase period or the end of each purchase period. Under the amended and restated ESPP, employees must hold the stock they purchase for a minimum of six months from the date of purchase. During 2019, employees purchased and we issued to employees 0.05 million shares under the ESPP at a weighted average price of $40.95 per share. At December 31, 2019, there were 0.7 million shares available for purchase under the ESPP. Stock Option Activity The following table summarizes the stock option activity under our stock plans for the year ended December 31, 2019 (in thousands, except per share and contractual life data): Number of Shares Weighted Average Exercise Price Per Share Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2018 11,311 $ 47.85 Granted 2,543 $ 56.19 Exercised (2,617 ) $ 40.48 Cancelled/forfeited/expired (236 ) $ 50.11 Outstanding at December 31, 2019 11,001 $ 51.48 4.41 $ 104,029 Exercisable at December 31, 2019 6,004 $ 50.95 3.34 $ 59,780 The weighted-average estimated fair values of options granted were $28.76, $25.49 and $25.42 for the years ended December 31, 2019, 2018 and 2017, respectively. The total intrinsic value of options exercised during the years ended December 31, 2019, 2018 and 2017 were $83.8 million, $34.8 million and $49.5 million, respectively, which we determined as of the date of exercise. The amount of cash received from the exercise of stock options was $105.9 million, $18.9 million and $21.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. For the year ended December 31, 2019, the weighted-average fair value of options exercised was $72.52. As of December 31, 2019, total unrecognized compensation cost related to non-vested stock options was $97.5 million. We will adjust the total unrecognized compensation cost for future changes in estimated forfeitures. We expect to recognize this cost over a weighted average period of 1.3 years. Restricted Stock Unit Activity The following table summarizes the RSU activity for the year ended December 31, 2019 (in thousands, except per share data): Number of Shares Weighted Average Grant Date Fair Value Per Share Non-vested at December 31, 2018 1,246 $ 50.20 Granted 1,114 $ 60.23 Vested (422 ) $ 51.36 Cancelled/forfeited (72 ) $ 53.39 Non-vested at December 31, 2019 1,866 $ 55.80 For the years ended December 31, 2019, 2018 and 2017, the weighted-average grant date fair value of RSUs granted was $60.23, $51.06 and $48.88 per RSU, respectively. As of December 31, 2019, total unrecognized compensation cost related to RSUs was $56.5 million. We will adjust the total unrecognized compensation cost for future changes in estimated forfeitures. We expect to recognize this cost over a weighted average period of 1.5 years. Stock-based Compensation Expense and Valuation Information The following table summarizes stock-based compensation expense for the years ended December 31, 2019, 2018 and 2017 (in thousands), which was allocated as follows and includes $37.1 million, $44.3 million and $17.5 million of stock-based compensation expense for Akcea employees in 2019, 2018 and 2017, respectively: Year Ended December 31, 2019 2018 2017 Cost of products sold $ 438 $ 160 $ — Research, development and patent 95,348 76,557 64,521 Selling, general and administrative 50,788 54,595 21,454 Total $ 146,574 $ 131,312 $ 85,975 In the third quarter of 2019, three Akcea executive officers terminated their employment and entered into separation agreements with Akcea. As a result, in the third quarter of 2019, Akcea reversed $19.1 million of stock-based compensation expense it had previously recognized related to the executive officers’ stock options and RSUs that were no longer going to vest. In the fourth quarter of 2019, Akcea adjusted its stock-based compensation expense for an additional executive officer who will terminate his employment in April 2020. Determining Fair Value Valuation. 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 actual and projected exercise patterns. We recognize compensation expense for stock options granted, RSUs, and stock purchase rights under the ESPP using the accelerated multiple-option approach. Under the accelerated multiple-option approach (also known as the graded-vesting method), we recognize compensation expense over the requisite service period for each separately vesting tranche of the award as though the award were in substance multiple awards, which results in the expense being front-loaded over the vesting period. For the years ended December 31, 2019, 2018 and 2017, we used the following weighted-average assumptions in our Black-Scholes calculations: Ionis Employee Stock Options: December 31, 2019 2018 2017 Risk-free interest rate 2.3 % 2.4 % 1.8 % Dividend yield 0.0 % 0.0 % 0.0 % Volatility 60.3 % 63.0 % 65.9 % Expected life 4.8 years 4.6 years 4.5 years Ionis Board of Director Stock Options: December 31, 2019 2018 2017 Risk-free interest rate 1.9 % 2.8 % 2.2 % Dividend yield 0.0 % 0.0 % 0.0 % Volatility 60.7 % 61.5 % 61.2 % Expected life 6.6 years 6.6 years 6.6 years Ionis ESPP: December 31, 2019 2018 2017 Risk-free interest rate 2.4 % 1.8 % 0.8 % Dividend yield 0.0 % 0.0 % 0.0 % Volatility 45.6 % 47.3 % 59.9 % Expected life 6 months 6 months 6 months Risk-Free Interest Rate. Dividend Yield. Volatility. Expected Life. Forfeitures. In addition to our stock plans, Akcea has its own stock plan under which it grants options and RSUs and under which it derives its stock-based compensation expense. The following are the weighted-average Black-Scholes assumptions Akcea used under its plan for the years ended December 31, 2019, 2018 and 2017: Akcea Employee Stock Options: December 31, 2019 2018 2017 Risk-free interest rate 2.2 % 2.8 % 1.9 % Dividend yield 0.0 % 0.0 % 0.0 % Volatility 75.4 % 77.1 % 79.5 % Expected life 6.09 years 6.08 years 6.06 years Akcea Board of Director Stock Options: December 31, 2019 2018 2017 Risk-free interest rate 1.8 % 2.9 % 1.9 % Dividend yield 0.0 % 0.0 % 0.0 % Volatility 73.8 % 78.2 % 79.4 % Expected life 6.25 years 6.42 years 6.25 years Akcea ESPP: December 31, 2019 2018 2017 Risk-free interest rate 2.4 % 1.9 % 1.1 % Dividend yield 0.0 % 0.0 % 0.0 % Volatility 60.0 % 64.2 % 73.3 % Expected life 6 months 6 months 6 months The following summarizes the Black-Scholes input methodology for Akcea options that differs from the methodology we use for Ionis options: Volatility. Expected Life. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 5. Income Taxes Income (loss) before income taxes is comprised of (in thousands): Year Ended December 31, 2019 2018 2017 United States $ 344,280 $ (69,576 ) $ (5,289 ) Foreign 2,489 (6,580 ) (11,474 ) Income (loss) before income taxes $ 346,769 $ (76,156 ) $ (16,763 ) Our income tax expense (benefit) was as follows (in thousands): Year Ended December 31, 2019 2018 2017 Current: Federal $ 35,861 $ 438 $ (7,460 ) State 14,329 (1,442 ) 1,246 Foreign 413 374 234 Total current income tax expense (benefit) 50,603 (630 ) (5,980 ) Deferred: Federal (7,096 ) (290,511 ) — State — — — Total deferred income tax benefit (7,096 ) (290,511 ) — Total income tax expense (benefit) $ 43,507 $ (291,141 ) $ (5,980 ) Our expense (benefit) for income taxes differs from the amount computed by applying the U.S. federal statutory rate to income (loss) before taxes. The sources and tax effects of the differences are as follows (in thousands): Year Ended December 31, 2019 2018 2017 Pre-tax income (loss) $ 346,769 $ (76,156 ) $ (16,763 ) Statutory rate 72,822 21.0 % (15,993 ) 21.0 % (5,867 ) 35.0 % State income tax net of federal benefit 49,119 14.2 % (2,202 ) 2.9 % 820 (4.9 )% Foreign 340 0.1 % 1,735 (2.3 )% 4,299 (25.6 )% Net change in valuation allowance (37,765 ) (10.9 )% (277,924 ) 364.9 % (86,296 ) 514.8 % Net operating loss expiration — 0.0 % 8,864 (11.6 )% 3,987 (23.8 )% TEGSEDI licensing gain — 0.0 % 59,583 (78.2 )% — 0.0 % Impact from outside basis differences (16,344 ) (4.7 )% — 0.0 % — 0.0 % Tax credits (22,296 ) (6.4 )% (73,362 ) 96.3 % (32,769 ) 195.5 % Deferred tax true-up 646 0.2 % 9,947 (13.1 )% 4,848 (28.9 )% Tax rate change 1,811 0.5 % (1,808 ) 2.4 % 114,832 (685.0 )% Non-deductible compensation 3,361 1.0 % 3,154 (4.1 )% 1,575 (9.4 )% Other non-deductible items 329 0.1 % (569 ) 0.7 % 2,548 (15.2 )% Akcea deconsolidation adjustment at IPO — 0.0 % — 0.0 % 469 (2.8 )% Stock-based compensation (4,837 ) (1.4 )% (4,199 ) 5.5 % (14,337 ) 85.5 % Foreign-derived intangible income benefit (2,071 ) (0.6 )% — 0.0 % — 0.0 % Other (1,608 ) (0.5 )% 1,633 (2.1 )% (89 ) 0.5 % Effective rate $ 43,507 12.6 % $ (291,141 ) 382.3 % $ (5,980 ) 35.7 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows (in thousands): Year Ended December 31, 2019 2018 Deferred Tax Assets: Net operating loss carryovers $ 20,191 $ 89,717 R&D credits 210,455 313,652 Deferred revenue 127,763 27,381 Stock-based compensation 65,703 61,027 Intangible and capital assets 77,861 49,007 Other 12,510 8,275 Total deferred tax assets $ 514,483 $ 549,059 Deferred Tax Liabilities: Convertible debt $ (6,110 ) $ (24,018 ) Fixed assets (1,958 ) — Other (3,884 ) — Net deferred tax asset $ 502,531 $ 525,041 Valuation allowance (196,974 ) (234,245 ) Total net deferred tax assets and liabilities $ 305,557 $ 290,796 We evaluate our deferred tax assets regularly to determine whether adjustments to the valuation allowance are appropriate due to changes in facts or circumstances, such as changes in expected future pre-tax earnings, tax law, interactions with taxing authorities and developments in case law. In making this evaluation, we rely on our recent history of pre-tax earnings. Our material assumptions are our forecasts of future pre-tax earnings and the nature and timing of future deductions and income represented by the deferred tax assets and liabilities, all of which involve the exercise of significant judgment. Although we believe our estimates are reasonable, we are required to use significant judgment in determining the appropriate amount of valuation allowance recorded against our deferred tax assets. We have historically recorded a valuation allowance against all our net deferred tax assets due to cumulative financial statement losses. However, in the fourth quarter of 2018, we reversed the valuation allowance previously recorded against Ionis’ stand-alone U.S. federal net deferred tax assets, resulting in a one-time non-cash tax benefit of $ million. we expected to generate U.S. pre-tax income on an Ionis standalone basis in future periods at a level that would result in us fully utilizing our U.S. federal net operating loss carryforwards and our Research and Development and Orphan Drug tax credit carryforwards. Our valuation allowance decreased by $37.3 million from December 31, 2018 to December 31, 2019. The decrease relates primarily to the current year utilization of a portion of our net deferred state tax assets, primarily California net operating loss carryovers, that had been fully reserved by the valuation allowance. We continue to maintain a full valuation allowance of $197.0 million against all of Akcea’s net deferred tax assets and the net state deferred tax assets of Ionis at December 31, 2019 due to uncertainties related to our ability to realize the tax benefits associated with these assets. We generated combined state taxable income and recognized a combined state tax liability in 2019. We utilized Ionis’ state deferred tax assets, primarily California net operating loss carry forwards, to reduce our combined state tax liability for the year by $59.1 million, which resulted in a corresponding reduction to our combined state valuation allowance. We have historically generated combined state net operating losses due primarily to Akcea’s net operating losses. However, Akcea generated net income in 2019. This was due to an increase in their research and development and license revenue, primarily related to non-recurring transactions in the first and fourth quarter from Novartis’ exercise of its option to license AKCEA-APO(a)-L Rx Rx At December 31, 2019, we had federal and state, primarily California, tax net operating loss carryforwards of $99.5 million and $117.9 million, respectively. Our federal tax loss carryforwards are available indefinitely. Our California tax loss carryforwards will begin to expire in 2033. At December 31, 2019, we also had federal and California research and development tax credit carryforwards of $198.8 million and $74.1 million, respectively. Our Federal research and development tax credit carryforwards will begin to expire in 2034. Our California research and development tax credit carryforwards are available indefinitely. Utilization of the net operating loss and tax credit carryforwards may be subject to an annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act of 2017, or the Tax Act. The Tax Act made broad and complex changes to the U.S. tax code, including, but not limited to, reducing the U.S. federal corporate income tax rate to 21 percent, imposing a mandatory one-time transition tax on certain unrepatriated earnings of foreign subsidiaries subjecting certain foreign earnings to U.S. taxation through base erosion anti-abuse tax, or BEAT, and global intangible low-taxed income, or GILTI, Our accounting for the elements of the Tax Act is complete. We have made an accounting policy election to treat taxes due on the GILTI inclusion as a current period expense. We analyze filing positions in all U.S. federal, state and foreign jurisdictions where we file income tax returns, and all open tax years in these jurisdictions to determine if we have any uncertain tax positions on any of our income tax returns. We recognize the impact of an uncertain tax position on an income tax return at the largest amount that the relevant taxing authority is more-likely-than not to sustain upon audit. We do not recognize uncertain income tax positions if they have less than 50 percent likelihood of the applicable tax authority sustaining our position. The following table summarizes our gross unrecognized tax benefits (in thousands): Year Ended December 31, 2019 2018 2017 Beginning balance of unrecognized tax benefits $ 68,301 $ 78,014 $ 66,999 Decrease for prior period tax positions (867 ) (12,814 ) — Increase for prior period tax positions 736 — 1,520 Increase for current period tax positions 1,614 3,101 9,495 Ending balance of unrecognized tax benefits $ 69,784 $ 68,301 $ 78,014 Included in the balance of unrecognized tax benefits at December 31, 2019, is $21.7 million that could impact our effective tax rate, subject to our remaining valuation allowance. We do not foresee any material changes to our gross unrecognized tax benefits within the next twelve months. We recognize interest and/or penalties related to income tax matters in income tax expense. We did not recognize any accrued interest and penalties related to gross unrecognized tax benefits during the year ended December 31, 2019. We are subject to taxation in the U.S. and various state and foreign jurisdictions. Our tax years for 1999 through 2018 are subject to examination by the U.S. federal, state and foreign tax authorities. We do not provide for a U.S. income tax liability and foreign withholding taxes on undistributed foreign earnings of our foreign subsidiaries as we consider those earnings to be permanently reinvested. It is not practicable for us to calculate the amount of unrecognized deferred tax liabilities associated with these earnings. |
Collaborative Arrangements and
Collaborative Arrangements and Licensing Agreements | 12 Months Ended |
Dec. 31, 2019 | |
Collaborative Arrangements and Licensing Agreements [Abstract] | |
Collaborative Arrangements and Licensing Agreements | 6. Collaborative Arrangements and Licensing Agreements Strategic Partnership 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 medicines with Biogen’s expertise in developing therapies for neurological disorders. We developed and licensed to Biogen SPINRAZA, our approved medicine to treat people with spinal muscular atrophy, or SMA. In new antisense medicines for the treatment of SMA We and Biogen are currently developing medicines to treat neurodegenerative diseases under these collaborations, including medicines to treat people with ALS, Alzheimer’s disease and Parkinson’s disease. In addition to these medicines, our collaborations with Biogen include a substantial research pipeline that addresses a broad range of neurological diseases. From inception through December 2019, we have received more than $ billion from our Biogen collaborations, including $ billion we received from Biogen in the second quarter of 2018 for our 2018 strategic neurology collaboration. Spinal Muscular Atrophy Collaborations 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. Biogen reported in From inception through December 2019, we earned more than $ billion in total revenue under our SPINRAZA collaboration, including more than $ million in revenue from SPINRAZA royalties and more than $ million in R&D revenue. We are receiving tiered royalties ranging from to on net 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 net sales of SPINRAZA. Biogen is responsible for global development, regulatory and commercialization activities and costs for SPINRAZA. We completed our performance obligations under our collaboration in 2016, including delivering the license to Biogen in July 2016. New antisense medicines for the treatment of SMA In December 2017, we entered into a collaboration agreement with Biogen to new antisense medicines for the treatment of SMA . Biogen has 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 medicines advance towards marketing approval. In total over the term of our collaboration, we are eligible to receive up to $ billion in license fees, milestone payments and other payments, including up to $ million for the achievement of development milestones, up to $ million for the achievement of commercialization milestones and up to $ million for the achievement of sales milestones. In addition, we are eligible to receive tiered royalties from the mid-teens to mid- range on net sales. We will achieve the next payment of up to $ million for the license of a medicine under this collaboration. At the commencement of this 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. In the fourth quarter of 2019, we completed our R&D services performance obligation under this collaboration. We were recognizing revenue as we performed services based on our effort to satisfy our performance obligation relative to the total effort expected to satisfy our performance obligation. We completed our performance obligation earlier than we previously estimated, as a result, we recognized $8.3 million of additional revenue in the fourth quarter of 2019. We do not have any remaining performance obligations under this collaboration. We will receive development and regulatory milestone payments from Biogen if Biogen advances the development candidate under this collaboration toward marketing approval. Neurology Collaborations 2018 Strategic Neurology In April 2018, we and Biogen entered into a strategic collaboration to develop novel antisense medicines for a broad range of neurological diseases and entered into a SPA. As part of the collaboration, Biogen gained exclusive rights to the use of our antisense technology to develop therapies for these diseases for years. We are responsible for the identification of antisense drug candidates based on selected targets Biogen will have the option to license the selected target If Biogen exercises its option to license a medicine, it will assume further global development, regulatory and commercialization responsibilities and costs for that medicine. In the second quarter of 2018, we received We are eligible to receive up to $ million in milestone payments for each medicine that achieves marketing approval. up to the on net sales. under this collaboration. At the commencement of this collaboration, We determined our transaction price to be $ million, comprised of $ million from the upfront payment and $ million for the premium paid by Biogen for its purchase of our common stock. currently estimate we will satisfy our performance obligation in 2013 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 medicines resulting from this collaboration. We will usually be responsible for drug discovery and early development of antisense medicines and Biogen will have the option to license antisense medicines 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 to license a medicine, it will assume all further global development, regulatory and commercialization responsibilities and costs for that medicine. We are currently advancing five medicines in development under this collaboration, including a medicine for Parkinson’s disease, two medicines for ALS and two medicines for undisclosed targets. In December 2018, Biogen exercised its option to license one of our ALS medicines, tofersen, and as a result Biogen is now responsible for all further global development, regulatory and commercialization activities and costs for tofersen. 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 medicines developed under 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 net sales from any antisense medicines developed under this collaboration. From inception through December 2019, we have received over $240 million in upfront fees, milestone payments and other payments under this collaboration. We will achieve the next payment of up to $10 million if we advance a program under this collaboration. At the 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 for our R&D services performance obligation based on our effort to satisfy our performance obligation relative to our total effort expected to satisfy our performance obligation . significant portion of the research and development services. We expect to complete the remainder of our services in 2020. 2019 Under this collaboration, we have also generated additional payments that we concluded were not part of our R&D services performance obligation. We recognized each of these payments in full in the respective quarter we generated the payment because we did not have any performance obligations for the respective payment. The following are the payments we generated in 2018 and 2019: ● In the third quarter of 2018, we earned a $10 million milestone payment when Biogen initiated a Phase 1 study of IONIS-C9 Rx ● In the fourth quarter of 2018, we earned a $35 million license fee when Biogen licensed tofersen from us because Biogen had full use of the licenses without any continuing involvement from us. ● In the fourth quarter of 2018, we earned a $ million milestone when Biogen initiated a Proof-of-Concept study for tofersen ● In the third quarter of 2019, we earned an $8 million milestone payment when Biogen initiated a Phase 1/2 study of ION859 (IONIS-LRRK2 Rx for the treatment of people with Parkinson’s disease ● In the fourth quarter of 2019, we earned a $10 million milestone payment when Biogen advanced IONIS-C9 Rx 2012 Neurology In December 2012, we and Biogen entered into a collaboration agreement to develop and commercialize novel antisense medicines to up to three targets to treat neurodegenerative diseases. We are responsible for the development of each of the medicines through the completion of the initial Phase 2 clinical study for such medicine. Biogen has the option to license a medicine from each of the programs through the completion of the first Phase 2 study for each program. We are currently advancing IONIS-MAPT Rx Rx Rx Under the terms of the agreement, we received an upfront payment of $ million. Over the term of the collaboration, we are eligible to receive up to $ 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 $ million per program consists of up to $ million in development milestone payments, plus a mark-up on the cost estimate of the Phase 1 and 2 studies and up to $ 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 net sales of any medicines resulting from each of the programs. From inception through December 2019, we have received $ million in payments under this collaboration, including $ million we earned when Biogen licensed IONIS-MAPT Rx and $ million when Biogen advanced ION581, both of which occurred in the fourth quarter of 2019. We also achieved a $ million milestone payment in the first quarter of 2020 when we advanced IONIS-MAPT Rx . We will achieve the next payment of $ Rx Under our collaboration, we determined we had a performance obligation to perform R&D services. We allocated $40 million in total payments to the transaction price for our R&D services performance obligation. In the third quarter of 2019, we completed our R&D services performance obligation when we designated a development candidate and Biogen accepted the development candidate. Biogen’s decision to accept the development candidate was not within our control. We were recognizing revenue as we performed services based on our effort to satisfy our performance obligation relative to the total effort expected to satisfy our performance obligation. Because Biogen accepted the development candidate earlier than when we were previously estimating, we recognized $6.3 million of accelerated revenue in the third quarter of 2019. When we commenced development for IONIS-MAPT Rx Rx Rx Rx ● In the second quarter of 2019, we achieved a $7.5 million milestone payment from Biogen when we advanced IONIS-MAPT Rx for Alzheimer’s disease ● In the fourth quarter of 2019, we achieved a $12 million milestone payment from Biogen when we entered into an agreement to conduct a long-term extension study for IONIS-MAPT Rx In the fourth quarter of 2019, we identified another performance obligation upon Biogen’s license of IONIS-MAPT Rx Rx In the fourth quarter of 2019, we earned a $ million milestone payment when Biogen advanced ION581. We recognized this milestone payment in full in the fourth quarter of 2019 because we do not have any performance obligations related to this milestone payment. During the years ended December 31, 2019, 2018 and 2017, we earned the following revenue from our relationship with Biogen (in millions, except percentage amounts): Year Ended December 31, 2019 2018 2017 SPINRAZA royalties (commercial revenue) $ 293.0 $ 237.9 $ 112.5 R&D revenue 180.6 137.1 150.6 Total revenue from our relationship with Biogen $ 473.6 $ 375.0 $ 263.1 Percentage of total revenue 42 % 63 % 51 % Our December 31, and included deferred revenue of $ million and $ million, respectively, related to our relationship with Biogen. Research, Development and Commercialization Partners AstraZeneca Cardiovascular, Renal and Metabolic Diseases Collaboration In July 2015, we and AstraZeneca formed a collaboration to discover and develop antisense therapies for treating cardiovascular, renal and metabolic diseases. Under our collaboration, AstraZeneca has licensed medicines from us: IONIS-AZ4-2.5-L Rx , a medicine we designed to treat cardiovascular disease and our first LICA technology, ION532, a medicine we designed to ION839, a medicine we designed to . AstraZeneca is responsible for all further global development, regulatory and commercialization activities and costs for each of the medicines it has licensed and any medicines AstraZeneca licenses in the future. 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 medicines 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 net sales from any product that AstraZeneca successfully commercializes under this collaboration agreement. We will achieve the next payment of $10 million under this collaboration if we advance a medicine under this collaboration . At the commencement of this 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 as we perform services based on our effort to satisfy this performance obligation relative to our total effort expected to satisfy our performance obligation. We currently estimate we will satisfy this performance obligation in 2019 Under this collaboration, we have also generated additional payments that we concluded were not part of our R&D services performance obligation. We recognized each of these payments in full in the respective quarter we generated the payment because the payments were distinct and we did not have any performance obligations for the respective payment. The following are the payments we have earned: ● In the first quarter of 2018, we earned ● In the third quarter of 2018, we earned a $10 million milestone payment when AstraZeneca initiated a Phase 1 study of IONIS-AZ4-2.5-L Rx ● In the fourth quarter of 2019, we earned a $10 million milestone payment when AstraZeneca initiated a Phase 1 study of ION839. Oncology Collaboration In December 2012, we entered into a collaboration agreement with AstraZeneca to discover and develop antisense medicines to treat cancer. As part of the agreement, we granted AstraZeneca an exclusive license to develop and commercialize for the treatment of cancer. AstraZeneca is 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 durvalumab, AstraZeneca’s PD-L1, blocking medicine, in people with head and neck cancer, metastatic bladder cancer and metastatic non-small cell lung cancer. We and AstraZeneca also established an oncology research program. AstraZeneca has the option to license medicines resulting from the program, and if AstraZeneca exercises its option to license a medicine, it will be responsible for all further global development, regulatory and commercialization activities and costs for such medicine. In the fourth quarter of 2018, we added Rx Under the terms of this agreement, we received $ 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 and ION736 under the research program, we could receive license fees and milestone payments of up to more than $ million, including up to $ million for the achievement of development milestones and up to $ million for the achievement of regulatory milestones. In addition, we are eligible to receive tiered royalties up to the mid-teens on net sales from any medicines resulting from these programs. From inception through December 2019, we have received over $ million in upfront fees, milestone payments, and other payments under this oncology collaboration, including nearly $ million in milestone payments we achieved when AstraZeneca advanced will achieve the next payment of up to $ million if we advance a medicine under our cancer research program with AstraZeneca. At the commencement of this collaboration, we identified four performance obligations, three of which we completed in March 2014 and we completed the remaining R&D services performance obligation in February 2018. In the fourth quarter of 2018, we earned a $17.5 million milestone payment and a $10 million milestone payment when AstraZeneca advanced two programs under our collaboration. We recognized these milestone payments in full in the fourth quarter because we do not have any performance obligations related to these milestone payments. During the years ended December 31, 2019, 2018 and 2017, we earned the following revenue from our relationship with AstraZeneca (in millions, except percentage amounts): Year Ended December 31, 2019 2018 2017 R&D revenue $ 28.1 $ 120.7 $ 21.6 Percentage of total revenue 3 % 20 % 4 % Our December 31, and included deferred revenue of $ million and $ million, respectively, related to our relationship with AstraZeneca. Bayer In May 2015, we entered into an exclusive license agreement with Bayer to develop and commercialize IONIS-FXI Rx Rx Rx Rx Rx 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 medicines combined. From inception through December 2019, we have received over $185 million from our Bayer collaboration, including a $10 million milestone payment we earned in the fourth quarter of 2019 when Bayer decided it would advance IONIS-FXI-L Rx At the commencement of this collaboration, we identified three performance obligations, the license of IONIS-FXI Rx In February 2017, when we amended our collaboration with Bayer, we identified two new performance obligations , for the license of IONIS-FXI-L Rx and for R&D services the license of IONIS-FXI-L Rx based on its estimated relative stand-alone selling price and recognized the associated revenue upon our delivery of the license in the first quarter of 2017. We allocated $ million to our R&D services performance obligation based on an estimated relative stand-alone selling price. In the fourth quarter of 2019, we earned a $10 million milestone payment when Bayer decided it would advance IONIS-FXI-L Rx During the years ended December 31, 2019, 2018 and 2017, we earned the following revenue from our relationship with Bayer (in millions, except percentage amounts): Year Ended December 31, 2019 2018 2017 R&D revenue $ 14.3 $ 5.0 $ 67.1 Percentage of total revenue 1 % 1 % 13 % Our December 31, 2019 and 2019 included deferred revenue of $ million and $ million, respectively, related to our relationship with Bayer. GSK In March 2010, we entered into an alliance with GSK using our antisense drug discovery platform to discover and develop new medicines 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. Our collaboration with GSK currently includes two medicines targeting hepatitis B virus, or HBV: IONIS-HBV Rx Rx Under our agreement, if GSK successfully develops these medicines and achieves pre-agreed sales targets, we could receive license fees and milestone payments of up to $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 net sales from any product that GSK successfully commercializes under this alliance. From inception through December 2019, we have received more than $189 million in payments under this alliance with GSK, including a $25 million license fee we earned in the third quarter of 2019 when GSK licensed the HBV program. We will achieve the next payment of $15 million when GSK initiates a Phase 3 study of a medicine under this program. We completed our R&D services performance obligations under our collaboration in 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 the HBV program. During the years ended December 31, 2019, 2018 and 2017, we earned the following revenue from our relationship with GSK (in millions, except percentage amounts): Year Ended December 31, 2019 2018 2017 R&D revenue $ 25.4 $ 1.6 $ 14.8 Percentage of total revenue 2 % 0 % 3 % We did not have any deferred revenue from our relationship with GSK at December 31, 2019 and 2018. Janssen Biotech, Inc. In December 2014, we entered into a collaboration agreement with Janssen Biotech, Inc. to discover and develop antisense medicines that can be locally administered, including oral delivery, to treat autoimmune disorders of the GI tract. Janssen had the option to license medicines from us through the designation of development candidates for up to three programs. Under our collaboration, Janssen licensed ION253 in November 2017, which is currently in preclinical development. Prior Janssen’s license of ION253, we were responsible for the discovery activities to identify development candidates. Under the license, Janssen is responsible for the global development, regulatory and commercial activities for ION253. Under the terms of the agreement, we received $35 million in upfront payments. We are eligible to receive up to more than $285 million in license fees and milestone payments for these programs, including up to $65 million for the achievement of development milestones, up to $160 million for the achievement of regulatory milestones and up to $60 million for the achievement of commercialization milestones. From inception through December 2019, we have received over $75 million. In addition, we are eligible to receive tiered royalties up to the near teens on net sales from any medicines resulting from this collaboration. We will achieve the next payment of $5 million if Janssen continues to advance a target under this collaboration. At the commencement of this 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 $ million We identified separate performance obligation when Janssen licensed ION253 under our collaboration because the license we granted to Janssen was distinct from our other performance obligations. We recognized the $5 million license fee for ION253 in November 2017, because Janssen had full use of the licenses without any continuing involvement from us. Additionally, we did not have any further performance obligations related to the license after we delivered it to Janssen. During the years ended December 31, 2019, 2018 and 2017, we earned the following revenue from our relationship with Janssen (in millions, except percentage amounts): Year Ended December 31, 2019 2018 2017 R&D revenue $ 0.1 $ 6.6 $ 36.0 Percentage of total revenue 0 % 1 % 7 % We did not have any deferred revenue from our relationship with Janssen at December 31, 2019 and 2018. Roche Huntington’s Disease In April 2013, we formed an alliance with Hoffman-La Roche Inc. and F. Hoffmann-La Roche Ltd., collectively Roche, to develop treatments for HD based on our antisense technology. Under the agreement, we discovered and developed tominersen, an antisense medicine targeting HTT protein. We developed tominersen through completion of our Phase 1/2 clinical study in people with early stage HD. In December 2017, upon completion of the Phase 1/2 study, Roche exercised its option to license tominersen Under the terms of the agreement, we received an upfront payment of $30 million in April 2013 and an additional $3 million payment in 2017. We are eligible to receive up to $365 million in a license fee and milestone payments including up to $70 million for the achievement of development milestones, up to $170 million for the achievement of regulatory milestones and up to $80 million for the achievement of commercialization milestones. In addition, we are eligible to receive up to $136.5 million in milestone payments for each additional medicine successfully developed. We are also eligible to receive tiered royalties up to the mid-teens on any net sales of any product resulting from this alliance. From inception through December 2019, we have received over $145 million in upfront fees, milestone payments and license fees for advancing tominersen, including $35 million in milestone payments we earned in the first quarter of 2019 when Roche dosed the first patient in a Phase 3 study for tominersen. We will achieve the next payment of $15 million if Roche advances tominersen. At the commencement of this 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, which ended in September 2017. Under this collaboration, we have also generated additional payments that we concluded were not part of our R&D services performance obligation. We recognized each of these payments in full in the respective quarter we generated the payment because the payments were distinct and we did not have any performance obligations for the respective payment. The following are the payments we have earned: ● In the fourth quarter of 2017, we earned a $45 million license fee when Roche licensed tominersen because Roche had full use of the license without any continuing involvement from us. ● In the first quarter of 2019, we earned $35 million in milestone payments when Roche dosed the first patient in the Phase 3 study of tominersen in the first quarter of 2019. We do not have any remaining performance obligations related to tominersen under this collaboration with Roche; however, we can still earn additional payments and royalties as Roche advances tominersen. IONIS-FB-L Rx for Complement-Mediated Diseases In October 2018, we entered into a collaboration agreement with Roche to develop IONIS-FB-L Rx for the treatment of complement-mediated diseases. We are currently conducting Phase 2 studies in two disease indications for IONIS-FB-L Rx , one for the treatment of patients with geographic atrophy, or GA, the advanced stage of dry age-related macular degeneration, or AMD, and a second for the treatment of patients with IgA nephropathy. has the option to license IONIS-FB-L Rx at the completion of these studies. Upon licensing, will be responsible for all further global development, regulatory and commercialization activities and costs. Under the terms of this agreement, we received a upfront payment in October 2018. We are eligible to receive up to in development, regulatory and sales milestone payments and license fees. In addition, we are also eligible to receive tiered royalties from the high teens to on net sales. We will achieve the next payment of $ million when we advance . At the commencement of this collaboration, we identified one performance obligation, which was to perform R&D services for Roche. We determined the transaction price to be the $75 million upfront payment we received and allocated it to our single performance obligation. We are recognizing revenue for our R&D services performance obligation as we perform services based on our effort to satisfy our performance obligation relative to our total effort expected to satisfy our performance obligation. We currently estimate we will satisfy our performance obligation in During the years ended December 31, 2019, 2018 and 2017, we earned the following revenue from our relationship with Roche (in millions, except percentage amounts): Year Ended December 31, 2019 2018 2017 R&D revenue $ 57.0 $ 8.3 $ 55.7 Percentage of total revenue 5 % 1 % 11 % Our December 31, and 2018 included deferred revenue of $ million and $ million related to our relationship with Roche, respectively. Akcea Collaborations The following collaboration agreements relate to Akcea, our majority owned affiliate. Akcea is responsible for the development activities under these collaborations. As such, Akcea recognizes the associated revenue earned, cash received and expenses incurred in its statement of operations, which we reflect in our consolidated results. We also reflect the noncontrolling interest attributable to other owners of Akcea’s common stock in a separate line on our statement of operations and a separate line within stockholders’ equity on our consolidated balance sheet. For each of Akcea's collaborations Akcea pays us sublicense fees for payments that it receives and we recognize those fees as revenue in our Ionis Core operating segment results and Akcea recognizes the fees as R&D expense. In our consolidated results, we eliminate any sublicense revenue and expense. Novartis In January 2017, we and Akcea initiated a collaboration with Novartis to develop and commercialize AKCEA-APO(a)-L 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. In February 2019, Novartis licensed AKCEA-APO(a)-L Rx Rx Rx Rx Rx Rx When Novartis decided to not exercise its option for Rx Rx Under the collaboration, Akcea is eligible to receive up to $675 million in milestone payments, including $25 million for the achievement of a development milestone, up to $290 million for the achievement of regulator |
Segment Information and Concent
Segment Information and Concentration of Business Risk | 12 Months Ended |
Dec. 31, 2019 | |
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 reportable segments Ionis Core and Akcea Therapeutics. Segment income (loss) from operations includes revenue less operating expenses attributable to each segment. In our Ionis Core segment we are exploiting our antisense technology to generate a broad pipeline of first-in-class and/or best-in-class medicines for us and our partners. Our Ionis Core segment generates revenue from a multifaceted partnering strategy. Akcea is . Akcea generates revenue from TEGSEDI and WAYLIVRA product sales and from its collaborations. The following tables show our segment revenue and income (loss) from operations for (in thousands), respectively. 2019 Ionis Core Akcea Therapeutics Elimination of Intercompany Activity Total Revenue: Commercial revenue: SPINRAZA royalties $ 292,992 $ — $ — $ 292,992 Product sales, net — 42,253 — 42,253 Licensing and other royalty revenue 12,616 10,172 (5,583 ) 17,205 Total commercial revenue 305,608 52,425 (5,583 ) 352,450 R&D revenue under collaborative agreements 553,038 436,118 (219,007 ) 770,149 Total segment revenue $ 858,646 $ 488,543 $ (224,590 ) $ 1,122,599 Total operating expenses $ 523,207 $ 450,469 $ (216,960 ) $ 756,716 Income (loss) from operations $ 335,439 $ 38,074 $ (7,630 ) $ 365,883 2018 Ionis Core Akcea Therapeutics Elimination of Intercompany Activity Total Revenue: Commercial revenue: SPINRAZA royalties $ 237,930 $ — $ — $ 237,930 TEGSEDI product sales, net — 2,237 — 2,237 Licensing and other royalty revenue 2,755 12,000 — 14,755 Total commercial revenue 240,685 14,237 — 254,922 R&D revenue under collaborative agreements 401,259 50,630 (107,137 ) 344,752 Total segment revenue $ 641,944 $ 64,867 $ (107,137 ) $ 599,674 Total operating expenses $ 380,212 $ 295,683 $ (14,849 ) $ 661,046 Income (loss) from operations $ 261,732 $ (230,816 ) $ (92,288 ) $ (61,372 ) 2017 Ionis Core Akcea Therapeutics Elimination of Intercompany Activity Total Revenue: Commercial revenue: SPINRAZA royalties $ 112,540 $ — $ — $ 112,540 Licensing and other royalty revenue 7,474 — — 7,474 Total commercial revenue 120,014 — — 120,014 R&D revenue under collaborative agreements 405,171 43,401 (54,407 ) 394,165 Total segment revenue $ 525,185 $ 43,401 $ (54,407 ) $ 514,179 Total operating expenses $ 373,788 $ 163,871 $ (54,527 ) $ 483,132 Income (loss) from operations $ 151,397 $ (120,470 ) $ 120 $ 31,047 The following table shows our total assets by segment at December 31, 2019 and 2018 (in thousands), respectively. Total Assets Ionis Core Akcea Therapeutics Elimination of Intercompany Activity Total December 31, 2019 $ 3,478,081 $ 599,250 $ (844,219 ) $ 3,233,112 December 31, 2018 $ 2,975,491 $ 365,261 $ (672,968 ) $ 2,667,784 Contracts receivables at December 31, 2019 and December 31, 2018 were comprised of approximately 75 percent and 99 percent for each year from one and four significant partners, respectively. |
Employment Benefits
Employment Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Employment Benefits [Abstract] | |
Employment Benefits | 8. Employment Benefits We have an employee 401(k) salary deferral plan, covering all employees. Employees could make contributions by withholding a percentage of their salary up to the IRS annual limit $19,000 and $25,000 in 2019 for employees under 50 years old and employees 50 years old or over, respectively. We made approximately $6.4 million, $5.7 million and $3.0 million in matching contributions for the years ended December 31, 2019, 2018 and 2017, respectively. |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2019 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 9. Legal Proceedings From time to time, we are involved in legal proceedings arising in the ordinary course of our business. Periodically, we evaluate the status of each legal matter and assess our potential financial exposure. If the potential loss from any legal proceeding is considered probable and the amount can be reasonably estimated, we accrue a liability for the estimated loss. Significant judgment is required to determine the probability of a loss and whether the amount of the loss is reasonably estimable. The outcome of any proceeding is not determinable in advance. As a result, the assessment of a potential liability and the amount of accruals recorded are based only on the information available to us at the time. As additional information becomes available, we reassess the potential liability related to the legal proceeding, and may revise our estimates. In November 2019, a purported stockholder of Akcea filed an action in the Delaware Court of Chancery, captioned City of Cambridge Retirement System v. Crooke, et al. L Rx |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Data (Unaudited) | 10. Quarterly Financial Data (Unaudited) The following financial information reflects all normal recurring adjustments, which are, in the opinion of management, necessary for a fair statement of the results of the interim periods. Summarized quarterly data for the years ended December 31, 2019 and 2018 are as follows (in thousands, except per share data). 2019 Quarters First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 297,214 $ 163,813 $ 167,892 $ 493,680 Operating expenses $ 175,679 $ 182,640 $ 165,369 $ 233,028 Income (loss) from operations $ 121,535 $ (18,827 ) $ 2,523 $ 260,652 Net income (loss) $ 90,884 $ (10,012 ) $ 18,432 $ 203,957 Net income (loss) attributable to Ionis Pharmaceuticals, Inc. common stockholders $ 84,443 $ (876 ) $ 26,163 $ 184,415 Basic net income (loss) per share (1) (2) $ 0.63 $ (0.01 ) $ 0.19 $ 1.31 Diluted net income (loss) per share (1) (3) $ 0.62 $ (0.01 ) $ 0.18 $ 1.28 2018 Quarters First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 144,419 $ 117,747 $ 145,395 $ 192,113 Operating expenses $ 147,720 $ 168,028 $ 163,967 $ 181,331 Income (loss) from operations $ (3,301 ) $ (50,281 ) $ (18,572 ) $ 10,782 Net income (loss) $ (10,812 ) $ (56,573 ) $ (20,365 ) $ 302,735 Net income (loss) attributable to Ionis Pharmaceuticals, Inc. common stockholders $ (1,420 ) (40,358 ) (4,559 ) 320,078 Basic net income (loss) per share (1) (2) $ (0.01 ) $ (0.29 ) $ (0.03 ) $ 2.32 Diluted net income (loss) per share (1) (3) $ (0.01 ) $ (0.29 ) $ (0.03 ) $ 2.21 ________________ (1) We computed net income (loss) per share independently for each of the quarters presented. Therefore, the sum of the quarterly net income (loss) per share will not necessarily equal the total for the year. (2) As discussed in Note 1, Organization and Significant Accounting Policies, Our basic net income (loss) per share for each quarter in 2019 was calculated as follows (in thousands, except per share amounts): Three Months Ended March 31 , 2019 Weighted Average Shares Owned in Akcea Akcea s Net Income Per Share Ionis Portion of Akcea s Net Income Common shares 68,582 $ 0.35 $ 23,846 Akcea’s net income attributable to our ownership $ 23,846 Ionis’ stand-alone net income 63,697 Net income available to Ionis common stockholders $ 87,543 Weighted average shares outstanding 138,582 Basic net income per share $ 0.63 Three Months Ended June 30 , 2019 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 70,221 $ (0.40 ) $ (28,244 ) Akcea’s net loss attributable to our ownership $ (28,244 ) Ionis’ stand-alone net income 27,311 Net loss available to Ionis common stockholders $ (933 ) Weighted average shares outstanding 140,247 Basic net loss per share $ (0.01 ) Three Months Ended September 30 , 2019 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 70,221 $ (0.34 ) $ (23,772 ) Akcea’s net loss attributable to our ownership $ (23,772 ) Ionis’ stand-alone net income 49,930 Net income available to Ionis common stockholders $ 26,158 Weighted average shares outstanding 140,551 Basic net income per share $ 0.19 Three Months Ended December 31 , 2019 Weighted Average Shares Owned in Akcea Akcea s Net Income Per Share Ionis Portion of Akcea s Net Income Common shares 71,342 $ 0.87 $ 62,243 Akcea’s net income attributable to our ownership $ 62,243 Ionis’ stand-alone net income 121,552 Net income available to Ionis common stockholders $ 183,795 Weighted average shares outstanding 140,583 Basic net income per share $ 1.31 Our basic net income (loss) per share for each quarter in 2018 was calculated as follows (in thousands, except per share amounts): Three Months Ended March 31 , 2018 Weighted Average Shares Owned in Akcea Akcea s Net 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 ) Three Months Ended June 30 , 2018 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 60,832 $ (0.72 ) $ (43,814 ) Akcea’s net loss attributable to our ownership $ (43,814 ) Ionis’ stand-alone net income 5,882 Net loss available to Ionis common stockholders $ (37,932 ) Weighted average shares outstanding 128,712 Basic net loss per share $ (0.29 ) Three Months Ended September 30 , 2018 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 65,538 $ (0.73 ) $ (47,789 ) Akcea’s net loss attributable to our ownership $ (47,789 ) Ionis’ stand-alone net income 43,226 Net loss available to Ionis common stockholders $ (4,563 ) Weighted average shares outstanding 137,346 Basic net loss per share $ (0.03 ) Three Months Ended December 31 , 2018 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 67,130 $ (0.79 ) $ (53,219 ) Akcea’s net loss attributable to our ownership $ (53,219 ) Ionis’ stand-alone net income 372,913 Net income available to Ionis common stockholders $ 319,694 Weighted average shares outstanding 137,699 Basic net income per share $ 2.32 (3) We had net income available to Ionis common stockholders for the following periods. 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 each of the periods consisted of the following (in thousands except per share amounts): Three Months Ended March 31, 2019 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 87,543 138,582 $ 0.63 Effect of dilutive securities: Shares issuable upon exercise of stock options — 2,252 Shares issuable upon restricted stock award issuance — 665 Shares issuable related to our ESPP — 38 Shares issuable related to our 1 percent convertible notes — — Income available to Ionis common stockholders, plus assumed conversions $ 87,543 141,537 $ 0.62 Three Months Ended September 30, 2019 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 26,158 140,551 $ 0.19 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,993 Shares issuable upon restricted stock award issuance — 844 Shares issuable related to our ESPP — 20 Shares issuable related to our 1 percent convertible notes — — Income available to Ionis common stockholders, plus assumed conversions $ 26,158 143,408 $ 0.18 Three Months Ended December 31, 2019 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 183,795 140,583 $ 1.31 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,467 Shares issuable upon restricted stock award issuance — 848 Shares issuable related to our ESPP — 18 Shares issuable related to our 0.125 percent convertible notes 644 860 Shares issuable related to our 1 percent convertible notes 12,046 9,527 Income available to Ionis common stockholders, plus assumed conversions $ 196,485 153,303 $ 1.28 Three Months Ended December 31, 2018 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 319,694 137,699 $ 2.32 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,254 Shares issuable upon restricted stock award issuance — 636 Shares issuable related to our ESPP — 7 Shares issuable related to our 1 percent convertible notes 10,745 10,260 Income available to Ionis common stockholders, plus assumed conversions $ 330,439 149,856 $ 2.21 For the three months ended March 31, 2019 and September 30, 2019, the calculation excluded the 1 percent notes because the effect on diluted earnings per share was anti-dilutive. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization and Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In our consolidated financial statements we included the accounts of Ionis Pharmaceuticals, Inc. (“we”, “us” or “our”) and the consolidated results of our majority-owned affiliate, Akcea Therapeutics, Inc., which we formed in December 2014. In July 2017, Akcea completed an initial public offering, or IPO. Since Akcea’s IPO, our ownership has ranged from to . At December 31, 2019, o Rx Refer to the section titled “Noncontrolling Interest in Akcea” in Note 2, Significant Accounting Policies, for further information related to our accounting for our investment in Akcea. |
Basic and Diluted Net Income per Share | Basic and Diluted Net Income per Share Basic net income per share We compute basic net income per share by dividing the total net income attributable to our common stockholders by our weighted-average number of common shares outstanding during the period. The calculation of total net income attributable to our common stockholders for each year considered our net income for Ionis on a stand-alone basis plus our share of Akcea’s net income (loss) for the period. To calculate the portion of Akcea’s net income (loss) attributable to our ownership for each year, we multiplied Akcea’s income (loss) per share by the weighted average shares we owned in Akcea during the period. As a result of this calculation, our total net income available to Ionis common stockholders for the calculation of net income per share is different than net income attributable to Ionis Pharmaceuticals, Inc. common stockholders in our consolidated statements of operations for each year. Our basic net income per share, was calculated as follows (in thousands, except per share amounts): Year Ended December 31, 2019 Weighted Average Shares Owned in Akcea Akcea s Net Income Per Share Ionis Portion of Akcea s Net Income Common shares 70,100 $ 0.49 $ 34,073 Akcea’s net income attributable to our ownership $ 34,073 Ionis’ stand-alone net income 262,490 Net income available to Ionis common stockholders $ 296,563 Weighted average shares outstanding 139,998 Basic net income per share $ 2.12 Year Ended December 31, 2018 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 59,812 $ (2.74 ) $ (163,938 ) Akcea’s net loss attributable to our ownership $ (163,938 ) Ionis’ stand-alone net income 440,806 Net income available to Ionis common stockholders $ 276,868 Weighted average shares outstanding 132,320 Basic net income per share $ 2.09 We calculated our basic net income per share for 2017 as follows (in thousands, except per share amounts): Year Ended December 31, 2017 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 20,669 $ (3.08 ) $ (63,638 ) Preferred shares 15,748 (1.80 ) (28,346 ) Akcea’s net loss attributable to our ownership $ (91,984 ) Ionis’ stand-alone net income 110,776 Net income available to Ionis common stockholders $ 18,792 Weighted average shares outstanding 124,016 Basic net income per share $ 0.15 Prior to Akcea’s IPO in July 2017, we owned Akcea series A convertible preferred stock, which included a six percent Diluted net income per share We calculated our diluted net income per share as follows (in thousands except per share amounts): Year Ended December 31, 2019 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 296,563 139,998 $ 2.12 Effect of dilutive securities: Shares issuable upon exercise of stock options — 2,090 Shares issuable upon restricted stock award issuance — 766 Shares issuable related to our Employee Stock Purchase Plan — 18 Income available to Ionis common stockholders, plus assumed conversions $ 296,563 142,872 $ 2.08 Year Ended December 31, 2018 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 276,868 132,320 $ 2.09 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,216 Shares issuable upon restricted stock award issuance — 514 Shares issuable related to our Employee Stock Purchase Plan — 6 Income available to Ionis common stockholders, plus assumed conversions $ 276,868 134,056 $ 2.07 Year Ended December 31, 2017 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 18,792 124,016 $ 0.15 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,619 Shares issuable upon restricted stock award issuance — 459 Shares issuable related to our Employee Stock Purchase Plan — 4 Income available to Ionis common stockholders, plus assumed conversions $ 18,792 126,098 $ 0.15 For each year presented, the calculation excluded our convertible senior notes because the effect on diluted earnings per share was anti-dilutive. |
Revenue Recognition | Revenue Recognition 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 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. We will also recognize as commercial revenue future sales milestone payments and royalties we earn under our partnerships. Commercial Revenue: Product sales, net We added product sales from TEGSEDI to our commercial revenue in the fourth quarter of 2018 and we added product sales from WAYLIVRA to our commercial revenue in the third quarter of 2019. 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. 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 manufacturing services. Our collaboration agreements are detailed in Note 6, Collaborative Arrangements and Licensing Agreements. Under each collaboration note we discuss our specific revenue recognition conclusions, including our significant performance obligations under each collaboration. 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 we enter into a collaboration agreement in which we provide our partner with an option to license a medicine 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 medicine 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 medicine or requests additional goods or services, then we identify a new performance obligation for that item. 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 material 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 and royalties. At the start of an agreement, our transaction price usually consists of only 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 and are contingent on certain future events. We reassess the total transaction price at each reporting period to determine if we should include additional payments in the transaction price. Milestone payments are our most common type of variable consideration. 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 and are usually based on scientific progress. For example, in the fourth quarter of 2019, we earned a $10 million milestone payment from AstraZeneca when AstraZeneca initiated a Phase 1 trial for ION839. We did not consider the milestone payments probable until AstraZeneca achieved the milestone event because the initiation of the Phase 1 trial was a contingent event that was not within our control. We recognized the milestone payments in full in the period the milestone event was achieved because we did not have any remaining performance obligations related to the milestone payment. 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 then allocate the transaction price to each performance obligation based on the relative stand-alone selling price. 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 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 ● A 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. 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, including the time we estimate it will take us to complete the activities, 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 recognize each period. This approach requires us to make numerous estimates and use significant judgement. If our estimates or judgements change over the course of the collaboration, they may affect the timing and amount of revenue that we recognize in the current and future periods. For example, 2013 Strategic Neurology collaboration with Biogen significant portion of the research and development services. We expect to complete the remainder of our services in 2020. As a result of our change in estimate, in the third quarter of 2019, we recorded a cumulative catch up adjustment of $ million to decrease revenue. Refer to Note 7, Collaborative Arrangements and Licensing Agreements , for further discussion of the cumulative catch up adjustment we made. The following are examples of when we typically recognize revenue based on the types of payments we receive. Commercial Revenue: SPINRAZA royalties and Licensing and other royalty revenue We recognize royalty revenue, including royalties from SPINRAZA sales, in the period in which the counterparty sells the related product and recognizes the related revenue, which in certain cases may require us to estimate our royalty revenue. Commercial Revenue: Product sales, net We recognize product sales in the period Reserves for Product sales We record product sales at our net sales price, or transaction price. We include in our transaction price estimated reserves for discounts, returns, chargebacks, rebates, co-pay assistance and other allowances that we offer within contracts between us and our customers, wholesalers, health care providers and other indirect customers. We estimate our reserves using the amounts we have earned or what we can claim on the associated sales. We classify our reserves as a reduction of accounts receivable when we are not required to make a payment or as a current liability when we are required to make a payment. In certain cases, our estimates include a range of possible outcomes that are probability-weighted for relevant factors such as our historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. Overall, our reserves reflect our best estimates under the terms of our respective contracts. When calculating our reserves and related product sales, we only recognize amounts to the extent that we consider it probable that we would not have to reverse in a future period a significant amount of the cumulative sales we previously recognized. The actual amounts we receive may ultimately differ from our reserve estimates. If actual amounts in the future vary from our estimates, we will adjust these estimates, which would affect our net product sales in the respective period. The following are the components of variable consideration related to product sales: Chargebacks: Government rebates : We are subject t Managed care rebates: Trade discounts: Distribution services Product returns: Other incentives: Research and development revenue under collaboration agreements: 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 collaboration agreement with Roche to develop IONIS-FB-L Rx for the treatment of complement-mediated diseases Milestone payments We are required to include additional consideration in the transaction price when it is probable. We typically include milestone payments for R&D services in the transaction price when they are achieved. We include these milestone payments when they are achieved because there is considerable uncertainty in the research and development processes that trigger these payments. Similarly, we include approval milestone payments in the transaction price once the medicine is approved by the applicable regulatory agency. We will recognize sales-based milestone payments in the period in which we achieve the milestone under the sales-based royalty exception allowed under accounting rules. We recognize milestone payments that relate to an ongoing performance obligation over our period of performance. For example, in the fourth quarter of 2019, we achieved two $7.5 million milestone payments from Biogen when we advanced two new targets for undisclosed neurological diseases under our 2018 strategic neurology collaboration. We added these payments to the transaction price and allocated it to our R&D services performance obligation. We are recognizing revenue related to these milestone payments over our estimated period of performance. Conversely, we recognize in full those milestone payments that we earn based on our partners’ activities when our partner achieves the milestone event and we do not have a performance obligation. For example, in the fourth quarter of 2019, we recognized a $10 million milestone payment when Biogen advanced the development candidate for an undisclosed target under our 2012 neurology collaboration agreement We concluded that the milestone payment was not related to our R&D services performance obligation. Therefore, we recognized the milestone payment in full in the fourth quarter of 2019. License fees We generally recognize as revenue the total amount we determine to be the relative stand-alone selling price of a license when we deliver the license to our partner. This is because our partner has full use of the license and we do not have any additional performance obligations related to the license after delivery. Rx Rx Sublicense fees We recognize sublicense fee revenue in the period in which a party, who has already licensed our technology, further licenses the technology to another party because we do not have any performance obligations related to the sublicense. Amendments to Agreements From time to time we amend our collaboration agreements. When this occurs, 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 in the amendment are distinct from the performance obligations in the original agreement 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 and at their stand-alone selling price, we then assess whether the remaining goods or services are distinct from those already provided. If the goods and/or services are distinct from what we have already provided, 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 the goods and/or services are not distinct from what we have already provided, 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 $ 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 $ 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 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 $ million transaction price to these performance obligations. Note 7, 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 were 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 accounting guidance requires us to account for them as a combined arrangement. For example, in the second quarter of 2018, we entered into two separate agreements with Biogen at the same time: a new strategic neurology collaboration agreement and a stock purchase agreement, or SPA. We evaluated the Biogen 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. |
Contracts Receivable | Contracts Receivable Our contracts receivable balance represents the amounts we have billed our partners or customers and that are due to us unconditionally for goods we have delivered or services we have performed. When we bill our partners or customers 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 or customer |
Unbilled SPINRAZA Royalties | 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 consolidated balance sheet. |
Deferred Revenue | 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 these instances, we include the amounts in deferred revenue on our consolidated balance sheet. |
Cost of Products Sold | Cost of Products Sold Our cost of products sold includes manufacturing costs, transportation and freight costs and indirect overhead costs associated with the manufacturing and distribution of our products. We also may include certain period costs related to manufacturing services and inventory adjustments in cost of products sold. Prior to obtaining regulatory approval of TEGSEDI in July 2018 and WAYLIVRA in May 2019, we expensed as research and development expenses a significant portion of the costs we incurred to produce the initial commercial launch supply for each medicine. We previously expensed $ million and $ million of costs to produce our products related to the product sales revenue we recognized in 2019 and 2018, 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. For the years ended December 31, 2019, 2018 and 2017, research and development expenses were $461.5 million, $411.9 million and $372.5 million, respectively. A portion of the costs included in research and development expenses are costs associated with our partner agreements. For the years ended December 31, 2019, 2018 and 2017, research and development costs of approximately $83.2 million, $58.7 million and $59.5 million, respectively, were related to our partner agreements. |
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 U.S. Patent and Trademark Office, or foreign equivalent, issues the patent. The weighted average remaining amortizable life of our issued patents was 10.3 years at December 31, 2019. The cost of our patents capitalized on our consolidated balance sheet at December 31, 2019 and 2018 was $34.0 million and $32.7 million, respectively. Accumulated amortization related to patents was $8.3 million and $8.7 million at December 31, 2019 and 2018, respectively. Based on our existing patents, we estimate amortization expense related to patents in each of the next five years to be the following: Year Ending December 31, Amortization (in millions) 2020 $ 1.8 2021 $ 1.8 2022 $ 1.7 2023 $ 1.6 2024 $ 1.4 We review our capitalized patent costs regularly to ensure that they include costs for patents and patent applications that have future value. When we identify patents and patent applications that we are not actively pursuing, we write off any associated costs. In 2019, 2018 and 2017, patent expenses were $4.2 million, $2.6 million and $2.1 million, respectively, and included non-cash charges related to the write-down of our patent costs to their estimated net realizable values of $2.2 million, $0.8 million and $0.4 million, respectively. |
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. Since Akcea’s IPO, our ownership has ranged from to . At December 31, , o ● 2.8 million shares in the first quarter of 2019 as payment for the sublicense fee Akcea owed us for Novartis’s license of AKCEA-APO(a)-L Rx ● 6.9 million shares in the fourth quarter of 2019 as payment for the sublicense fee Akcea owed us for Pfizer’s license of AKCEA-ANGPTL3-L Rx The shares third parties own represent an interest in Akcea’s equity that we do control. 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 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. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, short-term investments and receivables. We place our cash equivalents and short-term investments with reputable financial institutions. We primarily invest our excess cash in commercial paper and 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. |
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 on the last day of the fiscal period for identical or similar items. We record unrealized gains and losses on debt securities 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 December 31, 2019, we held equity investments in two publicly held companies, ProQR Therapeutics N.V., or ProQR, and Antisense Therapeutics Limited, or ATL. We also held equity investments in five privately-held companies, Atlantic Pharmaceuticals Limited, Dynacure SAS, Empirico, Inc., Seventh Sense Biosystems and Suzhou Ribo Life Science Co, Ltd. 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 our equity investments at fair value. Additionally, the amended accounting guidance requires us to recognize the changes in fair value in our consolidated statement of operations, instead of through accumulated other comprehensive income. Prior to 2018, we accounted for our equity investments in privately held companies under the cost method of accounting. Under the amended guidance we account for our equity investments in privately held companies 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. Our adoption of this guidance did not have an impact on our results. |
Inventory Valuation | Inventory Valuation We reflect our inventory on our consolidated balance sheet at the lower of cost or market value under the first-in, first-out method, or FIFO. We capitalize the costs of raw materials that we purchase for use in producing our medicines because until we use these raw materials, they have alternative future uses, which we refer to as clinical raw materials. We include in inventory raw material costs for medicines 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 medicine. For example, if one of our medicines failed, we could use the raw materials for that medicine to manufacture our other medicines. We expense these costs as R&D expenses when we begin to manufacture API for a particular medicine if the medicine has not been approved for marketing by a regulatory agency. We obtained the first regulatory approval for TEGSEDI in July 2018 and for WAYLIVRA in May 2019. At December 31, 2019, our physical inventory for TEGSEDI and WAYLIVRA included API that we produced prior to when we obtained regulatory approval. As such, this API has no cost basis as we had previously expensed the costs as R&D expenses. We review our inventory periodically and reduce the carrying value of items we consider to be slow moving or obsolete to their estimated net realizable value based on forecasted demand compared to quantities on hand. We consider several factors in estimating the net realizable value, including shelf life of our inventory, alternative uses for our medicines in development and historical write-offs. We recorded an insignificant Our inventory consisted of the following (in thousands): December 31, 2019 2018 Raw materials: Raw materials- clinical $ 9,363 $ 8,497 Raw materials- commercial 6,520 — Total raw materials 15,883 8,497 Work in process 2,039 — Finished goods 258 85 Total inventory $ 18,180 $ 8,582 |
Property, Plant and Equipment | Property, Plant and Equipment We carry our property, plant and equipment at cost and depreciate it on the straight-line method over its estimated useful life, which consists of the following (in thousands): Estimated Useful Lives December 31, (in years) 2019 2018 Computer software, laboratory, manufacturing and other equipment 3 to 10 $ 60,965 $ 53,496 Building, building improvements and building systems 15 to 40 119,830 97,528 Land improvements 20 2,853 2,853 Leasehold improvements 5 to 15 13,600 18,981 Furniture and fixtures 5 to 10 7,354 6,283 204,602 179,141 Less accumulated depreciation (74,013 ) (61,474 ) 130,589 117,667 Land 23,062 14,493 Total $ 153,651 $ 132,160 We depreciate our leasehold improvements using the shorter of the estimated useful life or remaining lease term. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We have estimated the fair value of our financial instruments. The amounts reported for cash, accounts receivable, accounts payable and accrued expenses approximate the fair value because of their short maturities. We report our investment securities at their estimated fair value based on quoted market prices for identical or similar instruments. |
Leases | Leases Topic 842 Adoption In February 2016, the Financial Accounting Standards Board, or FASB, issued amended accounting guidance related to lease accounting. This guidance supersedes the lease requirements we previously followed in Accounting Standards Codification, or ASC, Topic 840, Leases Leases permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification of those leases we had in place as of January 1, 2019. Leases We determine if an arrangement contains a lease at inception. We currently only have operating leases. We recognize a right-of-use operating lease asset and associated short- and long-term operating lease liability on our consolidated balance sheet for operating leases greater than one year. Our right-of-use assets represent our right to use an underlying asset for the lease term and our lease liabilities represent our obligation to make lease payments arising from the lease arrangement. We recognize our right-of-use operating lease assets and lease liabilities based on the present value of the future minimum lease payments we will pay over the lease term. As our current leases do not provide an interest rate implicit in the lease, we used our or Akcea’s incremental borrowing rate, based on the information available on the date we adopted Topic 842 or as of the lease inception date in determining the present value of future payments. Our right-of-use operating lease asset also includes any lease payments we made and excludes any tenant improvement allowances we received. We recognize rent expense for our minimum lease payments on a straight-line basis over the expected term of our lease. We recognize period expenses, such as common area maintenance expenses, in the period we incur the expense. |
Long-Lived Assets | Long-Lived Assets We evaluate long-lived assets, which include property, plant and equipment and patent costs, 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. We recorded charges of $2.2 million, $0.8 million and $0.8 million for the years ended December 31, 2019, 2018 and 2017, respectively, related primarily to the write-down of intangible assets. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
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 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. On the grant date, we use our stock price and assumptions regarding a number of variables to determine the estimated fair value of stock-based payment awards. These variables include, but are not limited to, our expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. We recognize compensation expense for option awards and RSUs using the accelerated multiple-option approach. Under the accelerated multiple-option approach (also known as the graded-vesting method), we recognize compensation expense over the requisite service period for each separately vesting tranche of the award as though the award were in substance multiple awards, which results in the expense being front-loaded over the vesting period. The fair value of RSUs is based on the market price of our common stock on the date of grant. The RSUs we have granted vest annually over a four-year period. See Note 4, Stockholders’ Equity, |
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 loss to our Consolidated Statement of Operations. The following table summarizes changes in accumulated other comprehensive loss for the years ended December 31, 2019 , 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Beginning balance accumulated other comprehensive loss $ (32,016 ) $ (31,759 ) $ (30,358 ) Unrealized gains (losses) on securities, net of tax (1) 6,633 (280 ) (960 ) Amounts reclassified from accumulated other comprehensive loss — — (374 ) Currency translation adjustment 93 23 (67 ) Net other comprehensive loss for the period 6,726 (257 ) (1,401 ) Ending balance accumulated other comprehensive loss $ (25,290 ) $ (32,016 ) $ (31,759 ) (1) A tax benefit of $1.4 million and $0.3 million was included in other comprehensive loss for the years ended December 31, 2019 and 2018, respectively. There was no tax benefit or expense for other comprehensive loss for the year ended December 31, 2017. |
Convertible Debt | Convertible Debt At issuance, we accounted for our convertible debt instruments, including our 0.125 percent senior convertible notes, or 0.125% Notes and 1 percent senior convertible notes, or 1% Notes, 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 on the date the notes were issued. In reviewing debt issuances, we were not able to identify any comparable companies that recently issued non-convertible debt instruments. Therefore, we estimated the fair value of the liability component of our notes by using assumptions that market participants would use in pricing a debt instrument, including market interest rates, credit standing, yield curves and volatilities. 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. For additional information, see Note 3, Long-Term Obligations and Commitments |
Segment Information | Segment Information We have operating segments, our Ionis Core segment and Akcea Therapeutics, our majority-owned affiliate. 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 and general and administrative expenses to Akcea for work Ionis performs on behalf of Akcea and we bill Akcea for these expenses. |
Fair Value Measurements | 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. The following tables present the major security types we held at December 31, 2019 and 2018 that we regularly measure and carry at fair value subject to trading restrictions through the fourth quarter of 2020, as a result we subject to trading restrictions through the fourth quarter of 2019, as a result we At December 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents (1) $ 418,406 $ 418,406 $ — $ — Corporate debt securities (2) 1,102,568 — 1,102,568 — Debt securities issued by U.S. government agencies (3) 329,404 — 329,404 — Debt securities issued by the U.S. Treasury (4) 363,694 363,694 — — Debt securities issued by states of the U.S. and political subdivisions of the states (4) 40,407 — 40,407 — Investment in ProQR Therapeutics N.V. (5) 4,506 — — 4,506 Total $ 2,258,985 $ 782,100 $ 1,472,379 $ 4,506 At December 31, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents (1) $ 146,281 $ 146,281 $ — $ — Corporate debt securities (6) 1,252,960 — 1,252,960 — Debt securities issued by U.S. government agencies (4) 276,612 — 276,612 — Debt securities issued by the U.S. Treasury (7) 260,154 260,154 — — Debt securities issued by states of the U.S. and political subdivisions of the states (4) 79,942 — 79,942 — Investment in ProQR Therapeutics N.V. (5) 1,349 — — 1,349 Total $ 2,017,298 $ 406,435 $ 1,609,514 $ 1,349 ________________ (1) Included in cash and cash equivalents on our consolidated balance sheet. (2) $19.0 million included in cash and cash equivalents on our consolidated balance sheet, with the difference included in short-term investments on our consolidated balance sheet. (3) $0.8 million included in cash and cash equivalents on our consolidated balance sheet, with the difference included in short-term investments on our consolidated balance sheet. (4) Included in short-term investments. (5) Included in other current assets on our consolidated balance sheet. (6) $50.2 million included in cash and cash equivalents on our consolidated balance sheet, with the difference included in short-term investments on our consolidated balance sheet. (7) $14.2 million included in cash and cash equivalents on our consolidated balance sheet, with the difference included in short-term investments on our consolidated balance sheet. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses and research and development credit carryforwards. We record a valuation allowance when necessary to reduce our net deferred tax assets to the amount expected to be realized. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act of 2017, or the Tax Act. The Tax Act created a new requirement on global intangible low-taxed income, or GILTI, earned by foreign subsidiaries for tax years beginning on or after January 1, 2018. The GILTI provisions require foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s assets to be included in our U.S. income tax return. Under U.S. GAAP, we are permitted to make an accounting policy election to either treat taxes due on future inclusions in U.S. taxable income related to GILTI as a current-period expense when incurred or to factor such amounts into our measurement of deferred taxes. We have made the election to account for GILTI as a component of current taxes incurred rather than as a component of deferred taxes. We apply the authoritative accounting guidance prescribing a threshold and measurement attribute for the financial recognition and measurement of a tax position taken or expected to be taken in a tax return. We recognize liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50 percent likely to be realized upon ultimate settlement. We are required to use significant judgment in evaluating our uncertain tax positions and determining our provision for income taxes. Although we believe our reserves are reasonable, no assurance can be given that the final tax outcome of these matters will not be different from that which is reflected in our historical income tax provisions and accruals. We adjust these reserves for changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences may impact the provision for income taxes in the period in which such determination is made. We are also required to use significant judgment in determining any valuation allowance recorded against our deferred tax assets. In assessing the need for a valuation allowance, we consider all available evidence, including scheduled reversal of deferred tax liabilities, past operating results, the feasibility of tax planning strategies and estimates of future taxable income. We base our estimates of future taxable income on assumptions that are consistent with our plans. The assumptions we use represent our best estimates and involve inherent uncertainties and the application of our judgment. Should actual amounts differ from our estimates, the amount of our tax expense and liabilities we recognize could be materially impacted. We record a valuation allowance to reduce the balance of our net deferred tax assets to the amount we believe is more-likely-than-not to be realized. We do not provide for a U.S. income tax liability and foreign withholding taxes on undistributed foreign earnings of our foreign subsidiaries. |
Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards 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. The new guidance requires us to remeasure our allowance in each reporting period we have credit losses. We adopted this the new guidance on January 1, 2020. We do not expect this guidance will have an impact on our consolidated financial statements. In August 2018, the FASB issued clarifying guidance on how to account for implementation costs related to cloud-servicing arrangements. The guidance states that if these fees qualify to be capitalized and amortized over the service period, they need to be expensed in the same line item as the service expense and recognized in the same balance sheet category. The update can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We adopted this guidance on January 1, 2020 on a prospective basis. We do not expect this guidance will have an impact on our consolidated financial statements. In August 2018, the FASB updated its disclosure requirements related to Level 1, 2 and 3 fair value measurements. The update included deletion and modification of certain disclosure requirements and additional disclosure related to Level 3 measurements. The guidance is effective for fiscal years beginning after December 31, 2019 and early adoption is permitted. We adopted this updated guidance on January 1, 2019 and it did not have a significant impact on our disclosures. In November 2018, the FASB issued clarifying guidance of the interaction between the collaboration accounting guidance and the new revenue recognition guidance we adopted on January 1, 2018 (Topic 606). Below is the clarifying guidance and how we will implement it (in italics): 1) When a participant is considered a customer in a collaborative arrangement, all of the associated accounting under Topic 606 should be applied ● We will apply all of the associated accounting under Topic 606 when we determine a participant in a collaborative arrangement is a customer 2) Adds “unit of account” concept to collaboration accounting guidance to align with Topic 606. The “unit of account” concept is used to determine if revenue is recognized or if a contra expense is recognized from consideration received under a collaboration ● We will use the “unit of account” concept when we receive consideration under a collaborative arrangement to determine when we recognize revenue or a contra expense 3) The clarifying guidance precludes us from recognizing revenue under Topic 606 when we determine a transaction with a collaborative partner is not a customer and is not directly related to the sales to third parties ● When we conclude a collaboration partner is not a customer and is not directly related to the sales to third parties, we will not recognize revenue for the transaction We adopted this new guidance on January 1, 2020. We do not expect this guidance will have a significant impact on our consolidated financial statements. In December 2019, the FASB issued guidance to simplify the accounting for income taxes. The update includes removing several exceptions under the existing guidance and includes several simplification updates, none of which apply to our current accounting for income taxes. The guidance is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. We adopted this updated guidance in the fourth quarter of 2019 and it did not have an impact on our consolidated financial statements or disclosures. |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization and Significant Accounting Policies [Abstract] | |
Basic Net Income per Share | Our basic net income per share, was calculated as follows (in thousands, except per share amounts): Year Ended December 31, 2019 Weighted Average Shares Owned in Akcea Akcea s Net Income Per Share Ionis Portion of Akcea s Net Income Common shares 70,100 $ 0.49 $ 34,073 Akcea’s net income attributable to our ownership $ 34,073 Ionis’ stand-alone net income 262,490 Net income available to Ionis common stockholders $ 296,563 Weighted average shares outstanding 139,998 Basic net income per share $ 2.12 Year Ended December 31, 2018 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 59,812 $ (2.74 ) $ (163,938 ) Akcea’s net loss attributable to our ownership $ (163,938 ) Ionis’ stand-alone net income 440,806 Net income available to Ionis common stockholders $ 276,868 Weighted average shares outstanding 132,320 Basic net income per share $ 2.09 We calculated our basic net income per share for 2017 as follows (in thousands, except per share amounts): Year Ended December 31, 2017 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 20,669 $ (3.08 ) $ (63,638 ) Preferred shares 15,748 (1.80 ) (28,346 ) Akcea’s net loss attributable to our ownership $ (91,984 ) Ionis’ stand-alone net income 110,776 Net income available to Ionis common stockholders $ 18,792 Weighted average shares outstanding 124,016 Basic net income per share $ 0.15 |
Basic and Diluted Net Income Per Share | We calculated our diluted net income per share as follows (in thousands except per share amounts): Year Ended December 31, 2019 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 296,563 139,998 $ 2.12 Effect of dilutive securities: Shares issuable upon exercise of stock options — 2,090 Shares issuable upon restricted stock award issuance — 766 Shares issuable related to our Employee Stock Purchase Plan — 18 Income available to Ionis common stockholders, plus assumed conversions $ 296,563 142,872 $ 2.08 Year Ended December 31, 2018 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 276,868 132,320 $ 2.09 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,216 Shares issuable upon restricted stock award issuance — 514 Shares issuable related to our Employee Stock Purchase Plan — 6 Income available to Ionis common stockholders, plus assumed conversions $ 276,868 134,056 $ 2.07 Year Ended December 31, 2017 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 18,792 124,016 $ 0.15 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,619 Shares issuable upon restricted stock award issuance — 459 Shares issuable related to our Employee Stock Purchase Plan — 4 Income available to Ionis common stockholders, plus assumed conversions $ 18,792 126,098 $ 0.15 |
Amortization Expense for Patents | Based on our existing patents, we estimate amortization expense related to patents in each of the next five years to be the following: Year Ending December 31, Amortization (in millions) 2020 $ 1.8 2021 $ 1.8 2022 $ 1.7 2023 $ 1.6 2024 $ 1.4 |
Accrued Liabilities | Our accrued liabilities consisted of the following (in thousands): December 31, 2019 2018 Clinical expenses $ 24,461 $ 22,125 In-licensing expenses 10,289 12,298 Other miscellaneous expenses 32,019 13,080 Total accrued liabilities $ 66,769 $ 47,503 |
Inventory | Our inventory consisted of the following (in thousands): December 31, 2019 2018 Raw materials: Raw materials- clinical $ 9,363 $ 8,497 Raw materials- commercial 6,520 — Total raw materials 15,883 8,497 Work in process 2,039 — Finished goods 258 85 Total inventory $ 18,180 $ 8,582 |
Property, Plant and Equipment | We carry our property, plant and equipment at cost and depreciate it on the straight-line method over its estimated useful life, which consists of the following (in thousands): Estimated Useful Lives December 31, (in years) 2019 2018 Computer software, laboratory, manufacturing and other equipment 3 to 10 $ 60,965 $ 53,496 Building, building improvements and building systems 15 to 40 119,830 97,528 Land improvements 20 2,853 2,853 Leasehold improvements 5 to 15 13,600 18,981 Furniture and fixtures 5 to 10 7,354 6,283 204,602 179,141 Less accumulated depreciation (74,013 ) (61,474 ) 130,589 117,667 Land 23,062 14,493 Total $ 153,651 $ 132,160 |
Changes in 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 loss to our Consolidated Statement of Operations. The following table summarizes changes in accumulated other comprehensive loss for the years ended December 31, 2019 , 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Beginning balance accumulated other comprehensive loss $ (32,016 ) $ (31,759 ) $ (30,358 ) Unrealized gains (losses) on securities, net of tax (1) 6,633 (280 ) (960 ) Amounts reclassified from accumulated other comprehensive loss — — (374 ) Currency translation adjustment 93 23 (67 ) Net other comprehensive loss for the period 6,726 (257 ) (1,401 ) Ending balance accumulated other comprehensive loss $ (25,290 ) $ (32,016 ) $ (31,759 ) (1) A tax benefit of $1.4 million and $0.3 million was included in other comprehensive loss for the years ended December 31, 2019 and 2018, respectively. There was no tax benefit or expense for other comprehensive loss for the year ended December 31, 2017. |
Assets Measured at Fair Value on a Recurring Basis | The following tables present the major security types we held at December 31, 2019 and 2018 that we regularly measure and carry at fair value subject to trading restrictions through the fourth quarter of 2020, as a result we subject to trading restrictions through the fourth quarter of 2019, as a result we At December 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents (1) $ 418,406 $ 418,406 $ — $ — Corporate debt securities (2) 1,102,568 — 1,102,568 — Debt securities issued by U.S. government agencies (3) 329,404 — 329,404 — Debt securities issued by the U.S. Treasury (4) 363,694 363,694 — — Debt securities issued by states of the U.S. and political subdivisions of the states (4) 40,407 — 40,407 — Investment in ProQR Therapeutics N.V. (5) 4,506 — — 4,506 Total $ 2,258,985 $ 782,100 $ 1,472,379 $ 4,506 At December 31, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents (1) $ 146,281 $ 146,281 $ — $ — Corporate debt securities (6) 1,252,960 — 1,252,960 — Debt securities issued by U.S. government agencies (4) 276,612 — 276,612 — Debt securities issued by the U.S. Treasury (7) 260,154 260,154 — — Debt securities issued by states of the U.S. and political subdivisions of the states (4) 79,942 — 79,942 — Investment in ProQR Therapeutics N.V. (5) 1,349 — — 1,349 Total $ 2,017,298 $ 406,435 $ 1,609,514 $ 1,349 ________________ (1) Included in cash and cash equivalents on our consolidated balance sheet. (2) $19.0 million included in cash and cash equivalents on our consolidated balance sheet, with the difference included in short-term investments on our consolidated balance sheet. (3) $0.8 million included in cash and cash equivalents on our consolidated balance sheet, with the difference included in short-term investments on our consolidated balance sheet. (4) Included in short-term investments. (5) Included in other current assets on our consolidated balance sheet. (6) $50.2 million included in cash and cash equivalents on our consolidated balance sheet, with the difference included in short-term investments on our consolidated balance sheet. (7) $14.2 million included in cash and cash equivalents on our consolidated balance sheet, with the difference included in short-term investments on our consolidated balance sheet. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019: One year or less 70 % After one year but within two years 20 % After two years but within three and a half years 10 % Total 100 % |
Summary of Investments | The following is a summary of our investments (in thousands): Gross Unrealized Estimated December 31, 2019 Cost Gains Losses Fair Value Available-for-sale securities: Corporate debt securities (2) $ 669,665 $ 1,451 $ (43 ) $ 671,073 Debt securities issued by U.S. government agencies 188,216 303 (43 ) 188,476 Debt securities issued by the U.S. Treasury (2) 327,670 232 (27 ) 327,875 Debt securities issued by states of the U.S. and political subdivisions of the states 21,065 26 (5 ) 21,086 Total securities with a maturity of one year or less 1,206,616 2,012 (118 ) 1,208,510 Corporate debt securities 428,627 2,911 (43 ) 431,495 Debt securities issued by U.S. government agencies 140,988 57 (117 ) 140,928 Debt securities issued by the U.S. Treasury 35,822 9 (12 ) 35,819 Debt securities issued by states of the U.S. and political subdivisions of the states 19,309 18 (6 ) 19,321 Total securities with a maturity of more than one year 624,746 2,995 (178 ) 627,563 Total available-for-sale securities $ 1,831,362 $ 5,007 $ (296 ) $ 1,836,073 Equity securities: Total equity securities included in other current assets (3) $ 4,712 $ - $ (870 ) $ 3,842 Total equity securities included in deposits and other assets (4) 10,000 - - 10,000 Total equity securities $ 14,712 $ - $ (870 ) $ 13,842 Total available-for-sale and equity securities $ 1,846,074 $ 5,007 $ (1,166 ) $ 1,849,915 Gross Unrealized Estimated December 31, 2018 Cost Gains Losses Fair Value Available-for-sale securities: Corporate debt securities (2) $ 956,879 $ 13 $ (1,858 ) $ 955,034 Debt securities issued by U.S. government agencies 168,839 3 (104 ) 168,738 Debt securities issued by the U.S. Treasury 244,640 15 (77 ) 244,578 Debt securities issued by states of the U.S. and political subdivisions of the states (2) 63,572 — (323 ) 63,249 Total securities with a maturity of one year or less 1,433,930 31 (2,362 ) 1,431,599 Corporate debt securities 299,018 194 (1,286 ) 297,926 Debt securities issued by U.S. government agencies 107,789 194 (109 ) 107,874 Debt securities issued by the U.S. Treasury 15,600 — (24 ) 15,576 Debt securities issued by states of the U.S. and political subdivisions of the states 16,980 — (287 ) 16,693 Total securities with a maturity of more than one year 439,387 388 (1,706 ) 438,069 Total available-for-sale securities $ 1,873,317 $ 419 $ (4,068 ) $ 1,869,668 Equity securities: Total equity securities included in other current assets (3) $ 1,212 $ 137 $ — $ 1,349 Total available-for-sale and equity securities $ 1,874,529 $ 556 $ (4,068 ) $ 1,871,017 (1) We hold our available-for-sale securities at amortized cost. (2) Includes investments classified as cash equivalents on our consolidated balance sheet. (3) Our equity securities included in other current assets consisted of our investment in ProQR, which is a public company. We recognize our public company equity securities at (4) Our equity securities included in deposits and other assets consisted of our investment in Empirico, which is a private company. We recognize our private company equity securities at on our consolidated balance sheet. |
Temporarily Impaired Investments | Investments we consider to be temporarily impaired at December 31, 2019 are 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 49 $ 131,702 $ (75 ) $ 11,840 $ (11 ) $ 143,542 $ (86 ) Debt securities issued by U.S. government agencies 43 149,731 (136 ) 37,041 (24 ) 186,772 (160 ) Debt securities issued by the U.S. Treasury 10 84,270 (39 ) — — 84,270 (39 ) Debt securities issued by states of the U.S. and political subdivisions of the states 11 10,241 (5 ) 10,303 (6 ) 20,544 (11 ) Total temporarily impaired securities 113 $ 375,944 $ (255 ) $ 59,184 $ (41 ) $ 435,128 $ (296 ) |
Long-Term Obligations and Com_2
Long-Term Obligations and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Obligations and Commitments [Abstract] | |
Long-Term Obligations | The carrying value of our long-term obligations was as follows (in thousands): December 31, 2019 2018 0.125 percent convertible senior notes $ 434,711 $ — 1 percent convertible senior notes 275,333 568,215 Long-term mortgage debt 59,913 59,842 Principal balance of fixed rate note with Morgan Stanley (1) — 12,500 Leases and other obligations 17,569 6,163 Total $ 787,526 $ 646,720 Less: current portion (2,026 ) (13,749 ) Total Long-Term Obligations $ 785,500 $ 632,971 (1) Our $12.5 million fixed rate note with Morgan Stanley was included in our current portion of long-term obligations on our consolidated balance sheet at December 31, 2018. We paid off our fixed rate note in the third quarter of 2019. |
Convertible Notes | At December 31, 2019, we had the following 0.125% 0.125% Notes Outstanding principal balance $ 548.8 Maturity date December 15, 2024 Interest rate 0.125 % Conversion price per share $ 83.28 Total shares of common stock subject to conversion 6.6 The following table summarizes information about the equity and liability components of our outstanding 0.125% Notes (in millions). We measured the fair values of the convertible notes outstanding based on quoted market prices, which is a Level 2 measurement at December 31, : 0.125% Notes Fair value of outstanding notes $ 558.7 Principal amount of convertible notes outstanding $ 548.8 Unamortized portion of debt discount $ 105.2 Long-term debt $ 434.7 Carrying value of equity component $ 105.8 At December 31, 2019, we had the following 1% Notes outstanding (amounts in millions except price per share data): 1% Notes Outstanding principal balance $ 309.9 Maturity date November 30, 2021 Interest rate 1 percent Conversion price per share $ 66.81 Total shares of common stock subject to conversion 4.6 The following table summarizes information about the equity and liability components of our outstanding Notes (in millions). We measured the fair values of the convertible notes outstanding based on quoted market prices, which is a Level 2 measurement at December 31, : December 31, 2019 2018 Fair value of outstanding notes $ 354.8 $ 725.0 Principal amount of convertible notes outstanding $ 309.9 $ 685.5 Unamortized portion of debt discount $ 32.8 $ 110.8 Long-term debt $ 275.3 $ 568.2 Carrying value of equity component $ 33.5 $ 219.0 We account for our convertible notes using an accounting standard that requires us to assign a value to our convertible debt equal to the estimated fair value of similar debt instruments without the conversion feature and to record the remaining portion in equity. As a result, we recorded our convertible notes at a discount, which we are amortizing as additional non-cash interest expense over the expected life of the respective debt. We determined our nonconvertible debt borrowing rate using a combination of the present value of the debt’s cash flows and a Black-Scholes valuation model. The following table summarizes the nonconvertible borrowing rate, effective interest rate and amortization period of our debt discount for our convertible notes: 1% Notes 0.125% Notes Nonconvertible debt borrowing rate 7.4 percent 4.4 percent Effective interest rate (1) 7.5 percent 4.9 percent Amortization period of debt discount 7 years 5 years (1) For our 1% Notes, our effective interest rate represents our effective interest rate after our December 2019 debt exchange. |
Maturity Schedules | Annual debt and other obligation maturities, including fixed and determinable interest, at December 31, 2019 are as follows (in thousands): 2020 $ 6,260 2021 316,114 2022 3,495 2023 4,180 2024 553,006 Thereafter 64,429 Subtotal $ 947,484 Less: current portion (2,026 ) Less: fixed and determinable interest (28,014 ) Less: unamortized portion of debt discount (137,975 ) Plus: lease liabilities 17,235 Total $ 796,704 |
Amounts Related to Operating Leases | Amounts related to our operating leases were as follows (dollar amounts in millions): At December 31, 2019 Right-of-use operating lease assets (1) $ 12.6 Operating lease liabilities (2) $ 17.2 Weighted average remaining lease term 8.1 years Weighted average discount rate 7.6 % (1) Included in deposits and other assets (2) Current portion of $2.0 million was included in current portion of long-term obligations long-term obligations |
Future Payments for Operating Lease Liabilities | As of December 31, 2019, the future payments for our operating lease liabilities are as follows (in thousands): Operating Leases Year ending December 31, $ 2020 3,285 2021 3,022 2022 2,781 2023 2,520 2024 2,396 Thereafter 9,465 Total minimum lease payments 23,469 Less: Imputed interest (6,234 ) Total operating lease liabilities $ 17,235 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity [Abstract] | |
Stock Option Activity | The following table summarizes the stock option activity under our stock plans for the year ended December 31, 2019 (in thousands, except per share and contractual life data): Number of Shares Weighted Average Exercise Price Per Share Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2018 11,311 $ 47.85 Granted 2,543 $ 56.19 Exercised (2,617 ) $ 40.48 Cancelled/forfeited/expired (236 ) $ 50.11 Outstanding at December 31, 2019 11,001 $ 51.48 4.41 $ 104,029 Exercisable at December 31, 2019 6,004 $ 50.95 3.34 $ 59,780 |
RSU Activity | The following table summarizes the RSU activity for the year ended December 31, 2019 (in thousands, except per share data): Number of Shares Weighted Average Grant Date Fair Value Per Share Non-vested at December 31, 2018 1,246 $ 50.20 Granted 1,114 $ 60.23 Vested (422 ) $ 51.36 Cancelled/forfeited (72 ) $ 53.39 Non-vested at December 31, 2019 1,866 $ 55.80 |
Stock-Based Compensation Expense | The following table summarizes stock-based compensation expense for the years ended December 31, 2019, 2018 and 2017 (in thousands), which was allocated as follows and includes $37.1 million, $44.3 million and $17.5 million of stock-based compensation expense for Akcea employees in 2019, 2018 and 2017, respectively: Year Ended December 31, 2019 2018 2017 Cost of products sold $ 438 $ 160 $ — Research, development and patent 95,348 76,557 64,521 Selling, general and administrative 50,788 54,595 21,454 Total $ 146,574 $ 131,312 $ 85,975 |
Stockholders' Equity [Abstract] | |
Weighted-Average Assumptions for Stock Options | Ionis Employee Stock Options: December 31, 2019 2018 2017 Risk-free interest rate 2.3 % 2.4 % 1.8 % Dividend yield 0.0 % 0.0 % 0.0 % Volatility 60.3 % 63.0 % 65.9 % Expected life 4.8 years 4.6 years 4.5 years Ionis Board of Director Stock Options: December 31, 2019 2018 2017 Risk-free interest rate 1.9 % 2.8 % 2.2 % Dividend yield 0.0 % 0.0 % 0.0 % Volatility 60.7 % 61.5 % 61.2 % Expected life 6.6 years 6.6 years 6.6 years |
Weighted-Average Assumptions for ESPP | Ionis ESPP: December 31, 2019 2018 2017 Risk-free interest rate 2.4 % 1.8 % 0.8 % Dividend yield 0.0 % 0.0 % 0.0 % Volatility 45.6 % 47.3 % 59.9 % Expected life 6 months 6 months 6 months |
Akcea [Member] | |
Stockholders' Equity [Abstract] | |
Weighted-Average Assumptions for Stock Options | Akcea Employee Stock Options: December 31, 2019 2018 2017 Risk-free interest rate 2.2 % 2.8 % 1.9 % Dividend yield 0.0 % 0.0 % 0.0 % Volatility 75.4 % 77.1 % 79.5 % Expected life 6.09 years 6.08 years 6.06 years Akcea Board of Director Stock Options: December 31, 2019 2018 2017 Risk-free interest rate 1.8 % 2.9 % 1.9 % Dividend yield 0.0 % 0.0 % 0.0 % Volatility 73.8 % 78.2 % 79.4 % Expected life 6.25 years 6.42 years 6.25 years |
Weighted-Average Assumptions for ESPP | Akcea ESPP: December 31, 2019 2018 2017 Risk-free interest rate 2.4 % 1.9 % 1.1 % Dividend yield 0.0 % 0.0 % 0.0 % Volatility 60.0 % 64.2 % 73.3 % Expected life 6 months 6 months 6 months |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income (Loss) Before Income Taxes | Income (loss) before income taxes is comprised of (in thousands): Year Ended December 31, 2019 2018 2017 United States $ 344,280 $ (69,576 ) $ (5,289 ) Foreign 2,489 (6,580 ) (11,474 ) Income (loss) before income taxes $ 346,769 $ (76,156 ) $ (16,763 ) |
Income Tax Expense (Benefit) | Our income tax expense (benefit) was as follows (in thousands): Year Ended December 31, 2019 2018 2017 Current: Federal $ 35,861 $ 438 $ (7,460 ) State 14,329 (1,442 ) 1,246 Foreign 413 374 234 Total current income tax expense (benefit) 50,603 (630 ) (5,980 ) Deferred: Federal (7,096 ) (290,511 ) — State — — — Total deferred income tax benefit (7,096 ) (290,511 ) — Total income tax expense (benefit) $ 43,507 $ (291,141 ) $ (5,980 ) |
Reconciliation of Statutory to Effective Tax Rate | Our expense (benefit) for income taxes differs from the amount computed by applying the U.S. federal statutory rate to income (loss) before taxes. The sources and tax effects of the differences are as follows (in thousands): Year Ended December 31, 2019 2018 2017 Pre-tax income (loss) $ 346,769 $ (76,156 ) $ (16,763 ) Statutory rate 72,822 21.0 % (15,993 ) 21.0 % (5,867 ) 35.0 % State income tax net of federal benefit 49,119 14.2 % (2,202 ) 2.9 % 820 (4.9 )% Foreign 340 0.1 % 1,735 (2.3 )% 4,299 (25.6 )% Net change in valuation allowance (37,765 ) (10.9 )% (277,924 ) 364.9 % (86,296 ) 514.8 % Net operating loss expiration — 0.0 % 8,864 (11.6 )% 3,987 (23.8 )% TEGSEDI licensing gain — 0.0 % 59,583 (78.2 )% — 0.0 % Impact from outside basis differences (16,344 ) (4.7 )% — 0.0 % — 0.0 % Tax credits (22,296 ) (6.4 )% (73,362 ) 96.3 % (32,769 ) 195.5 % Deferred tax true-up 646 0.2 % 9,947 (13.1 )% 4,848 (28.9 )% Tax rate change 1,811 0.5 % (1,808 ) 2.4 % 114,832 (685.0 )% Non-deductible compensation 3,361 1.0 % 3,154 (4.1 )% 1,575 (9.4 )% Other non-deductible items 329 0.1 % (569 ) 0.7 % 2,548 (15.2 )% Akcea deconsolidation adjustment at IPO — 0.0 % — 0.0 % 469 (2.8 )% Stock-based compensation (4,837 ) (1.4 )% (4,199 ) 5.5 % (14,337 ) 85.5 % Foreign-derived intangible income benefit (2,071 ) (0.6 )% — 0.0 % — 0.0 % Other (1,608 ) (0.5 )% 1,633 (2.1 )% (89 ) 0.5 % Effective rate $ 43,507 12.6 % $ (291,141 ) 382.3 % $ (5,980 ) 35.7 % |
Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows (in thousands): Year Ended December 31, 2019 2018 Deferred Tax Assets: Net operating loss carryovers $ 20,191 $ 89,717 R&D credits 210,455 313,652 Deferred revenue 127,763 27,381 Stock-based compensation 65,703 61,027 Intangible and capital assets 77,861 49,007 Other 12,510 8,275 Total deferred tax assets $ 514,483 $ 549,059 Deferred Tax Liabilities: Convertible debt $ (6,110 ) $ (24,018 ) Fixed assets (1,958 ) — Other (3,884 ) — Net deferred tax asset $ 502,531 $ 525,041 Valuation allowance (196,974 ) (234,245 ) Total net deferred tax assets and liabilities $ 305,557 $ 290,796 |
Gross Unrecognized Tax Benefits | The following table summarizes our gross unrecognized tax benefits (in thousands): Year Ended December 31, 2019 2018 2017 Beginning balance of unrecognized tax benefits $ 68,301 $ 78,014 $ 66,999 Decrease for prior period tax positions (867 ) (12,814 ) — Increase for prior period tax positions 736 — 1,520 Increase for current period tax positions 1,614 3,101 9,495 Ending balance of unrecognized tax benefits $ 69,784 $ 68,301 $ 78,014 |
Collaborative Arrangements an_2
Collaborative Arrangements and Licensing Agreements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Biogen [Member] | |
Collaborative Arrangements and Licensing Agreements [Abstract] | |
Revenue from Collaborative Relationship | During the years ended December 31, 2019, 2018 and 2017, we earned the following revenue from our relationship with Biogen (in millions, except percentage amounts): Year Ended December 31, 2019 2018 2017 SPINRAZA royalties (commercial revenue) $ 293.0 $ 237.9 $ 112.5 R&D revenue 180.6 137.1 150.6 Total revenue from our relationship with Biogen $ 473.6 $ 375.0 $ 263.1 Percentage of total revenue 42 % 63 % 51 % |
AstraZeneca [Member] | |
Collaborative Arrangements and Licensing Agreements [Abstract] | |
Revenue from Collaborative Relationship | During the years ended December 31, 2019, 2018 and 2017, we earned the following revenue from our relationship with AstraZeneca (in millions, except percentage amounts): Year Ended December 31, 2019 2018 2017 R&D revenue $ 28.1 $ 120.7 $ 21.6 Percentage of total revenue 3 % 20 % 4 % |
Bayer [Member] | |
Collaborative Arrangements and Licensing Agreements [Abstract] | |
Revenue from Collaborative Relationship | During the years ended December 31, 2019, 2018 and 2017, we earned the following revenue from our relationship with Bayer (in millions, except percentage amounts): Year Ended December 31, 2019 2018 2017 R&D revenue $ 14.3 $ 5.0 $ 67.1 Percentage of total revenue 1 % 1 % 13 % |
GSK [Member] | |
Collaborative Arrangements and Licensing Agreements [Abstract] | |
Revenue from Collaborative Relationship | During the years ended December 31, 2019, 2018 and 2017, we earned the following revenue from our relationship with GSK (in millions, except percentage amounts): Year Ended December 31, 2019 2018 2017 R&D revenue $ 25.4 $ 1.6 $ 14.8 Percentage of total revenue 2 % 0 % 3 % |
Janssen Biotech, Inc. [Member] | |
Collaborative Arrangements and Licensing Agreements [Abstract] | |
Revenue from Collaborative Relationship | During the years ended December 31, 2019, 2018 and 2017, we earned the following revenue from our relationship with Janssen (in millions, except percentage amounts): Year Ended December 31, 2019 2018 2017 R&D revenue $ 0.1 $ 6.6 $ 36.0 Percentage of total revenue 0 % 1 % 7 % |
Roche [Member] | |
Collaborative Arrangements and Licensing Agreements [Abstract] | |
Revenue from Collaborative Relationship | During the years ended December 31, 2019, 2018 and 2017, we earned the following revenue from our relationship with Roche (in millions, except percentage amounts): Year Ended December 31, 2019 2018 2017 R&D revenue $ 57.0 $ 8.3 $ 55.7 Percentage of total revenue 5 % 1 % 11 % |
Novartis [Member] | |
Collaborative Arrangements and Licensing Agreements [Abstract] | |
Revenue from Collaborative Relationship | During the years ended December 31, 2019 and 2018, Akcea earned the following revenue from its relationship with Novartis (in millions, except percentage amounts): Year Ended December 31, 2019 2018 2017 R&D revenue $ 187.4 $ 50.6 $ 43.4 Percentage of total revenue 17 % 8 % 8 % |
Pfizer [Member] | |
Collaborative Arrangements and Licensing Agreements [Abstract] | |
Revenue from Collaborative Relationship | During the year ended December 31, 2019, Akcea earned the following revenue from its relationship with Pfizer (in millions, except percentage amounts): Year Ended December 31, 2019 R&D revenue $ 248.7 Percentage of total revenue 22 % |
PTC Therapeutics [Member] | |
Collaborative Arrangements and Licensing Agreements [Abstract] | |
Revenue from Collaborative Relationship | During the years ended December 31, 2019 and 2018, Akcea earned the following revenue from its relationship with PTC (in millions, except percentage amounts): Year Ended December 31, 2019 2018 Licensing and other royalty revenue (commercial revenue) $ 10.2 $ 12.0 Percentage of total revenue 1 % 2 % |
Segment Information and Conce_2
Segment Information and Concentration of Business Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information and Concentration of Business Risk [Abstract] | |
Segment Information | The following tables show our segment revenue and income (loss) from operations for (in thousands), respectively. 2019 Ionis Core Akcea Therapeutics Elimination of Intercompany Activity Total Revenue: Commercial revenue: SPINRAZA royalties $ 292,992 $ — $ — $ 292,992 Product sales, net — 42,253 — 42,253 Licensing and other royalty revenue 12,616 10,172 (5,583 ) 17,205 Total commercial revenue 305,608 52,425 (5,583 ) 352,450 R&D revenue under collaborative agreements 553,038 436,118 (219,007 ) 770,149 Total segment revenue $ 858,646 $ 488,543 $ (224,590 ) $ 1,122,599 Total operating expenses $ 523,207 $ 450,469 $ (216,960 ) $ 756,716 Income (loss) from operations $ 335,439 $ 38,074 $ (7,630 ) $ 365,883 2018 Ionis Core Akcea Therapeutics Elimination of Intercompany Activity Total Revenue: Commercial revenue: SPINRAZA royalties $ 237,930 $ — $ — $ 237,930 TEGSEDI product sales, net — 2,237 — 2,237 Licensing and other royalty revenue 2,755 12,000 — 14,755 Total commercial revenue 240,685 14,237 — 254,922 R&D revenue under collaborative agreements 401,259 50,630 (107,137 ) 344,752 Total segment revenue $ 641,944 $ 64,867 $ (107,137 ) $ 599,674 Total operating expenses $ 380,212 $ 295,683 $ (14,849 ) $ 661,046 Income (loss) from operations $ 261,732 $ (230,816 ) $ (92,288 ) $ (61,372 ) 2017 Ionis Core Akcea Therapeutics Elimination of Intercompany Activity Total Revenue: Commercial revenue: SPINRAZA royalties $ 112,540 $ — $ — $ 112,540 Licensing and other royalty revenue 7,474 — — 7,474 Total commercial revenue 120,014 — — 120,014 R&D revenue under collaborative agreements 405,171 43,401 (54,407 ) 394,165 Total segment revenue $ 525,185 $ 43,401 $ (54,407 ) $ 514,179 Total operating expenses $ 373,788 $ 163,871 $ (54,527 ) $ 483,132 Income (loss) from operations $ 151,397 $ (120,470 ) $ 120 $ 31,047 The following table shows our total assets by segment at December 31, 2019 and 2018 (in thousands), respectively. Total Assets Ionis Core Akcea Therapeutics Elimination of Intercompany Activity Total December 31, 2019 $ 3,478,081 $ 599,250 $ (844,219 ) $ 3,233,112 December 31, 2018 $ 2,975,491 $ 365,261 $ (672,968 ) $ 2,667,784 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Data | The following financial information reflects all normal recurring adjustments, which are, in the opinion of management, necessary for a fair statement of the results of the interim periods. Summarized quarterly data for the years ended December 31, 2019 and 2018 are as follows (in thousands, except per share data). 2019 Quarters First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 297,214 $ 163,813 $ 167,892 $ 493,680 Operating expenses $ 175,679 $ 182,640 $ 165,369 $ 233,028 Income (loss) from operations $ 121,535 $ (18,827 ) $ 2,523 $ 260,652 Net income (loss) $ 90,884 $ (10,012 ) $ 18,432 $ 203,957 Net income (loss) attributable to Ionis Pharmaceuticals, Inc. common stockholders $ 84,443 $ (876 ) $ 26,163 $ 184,415 Basic net income (loss) per share (1) (2) $ 0.63 $ (0.01 ) $ 0.19 $ 1.31 Diluted net income (loss) per share (1) (3) $ 0.62 $ (0.01 ) $ 0.18 $ 1.28 2018 Quarters First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 144,419 $ 117,747 $ 145,395 $ 192,113 Operating expenses $ 147,720 $ 168,028 $ 163,967 $ 181,331 Income (loss) from operations $ (3,301 ) $ (50,281 ) $ (18,572 ) $ 10,782 Net income (loss) $ (10,812 ) $ (56,573 ) $ (20,365 ) $ 302,735 Net income (loss) attributable to Ionis Pharmaceuticals, Inc. common stockholders $ (1,420 ) (40,358 ) (4,559 ) 320,078 Basic net income (loss) per share (1) (2) $ (0.01 ) $ (0.29 ) $ (0.03 ) $ 2.32 Diluted net income (loss) per share (1) (3) $ (0.01 ) $ (0.29 ) $ (0.03 ) $ 2.21 ________________ (1) We computed net income (loss) per share independently for each of the quarters presented. Therefore, the sum of the quarterly net income (loss) per share will not necessarily equal the total for the year. (2) As discussed in Note 1, Organization and Significant Accounting Policies, Our basic net income (loss) per share for each quarter in 2019 was calculated as follows (in thousands, except per share amounts): Three Months Ended March 31 , 2019 Weighted Average Shares Owned in Akcea Akcea s Net Income Per Share Ionis Portion of Akcea s Net Income Common shares 68,582 $ 0.35 $ 23,846 Akcea’s net income attributable to our ownership $ 23,846 Ionis’ stand-alone net income 63,697 Net income available to Ionis common stockholders $ 87,543 Weighted average shares outstanding 138,582 Basic net income per share $ 0.63 Three Months Ended June 30 , 2019 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 70,221 $ (0.40 ) $ (28,244 ) Akcea’s net loss attributable to our ownership $ (28,244 ) Ionis’ stand-alone net income 27,311 Net loss available to Ionis common stockholders $ (933 ) Weighted average shares outstanding 140,247 Basic net loss per share $ (0.01 ) Three Months Ended September 30 , 2019 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 70,221 $ (0.34 ) $ (23,772 ) Akcea’s net loss attributable to our ownership $ (23,772 ) Ionis’ stand-alone net income 49,930 Net income available to Ionis common stockholders $ 26,158 Weighted average shares outstanding 140,551 Basic net income per share $ 0.19 Three Months Ended December 31 , 2019 Weighted Average Shares Owned in Akcea Akcea s Net Income Per Share Ionis Portion of Akcea s Net Income Common shares 71,342 $ 0.87 $ 62,243 Akcea’s net income attributable to our ownership $ 62,243 Ionis’ stand-alone net income 121,552 Net income available to Ionis common stockholders $ 183,795 Weighted average shares outstanding 140,583 Basic net income per share $ 1.31 Our basic net income (loss) per share for each quarter in 2018 was calculated as follows (in thousands, except per share amounts): Three Months Ended March 31 , 2018 Weighted Average Shares Owned in Akcea Akcea s Net 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 ) Three Months Ended June 30 , 2018 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 60,832 $ (0.72 ) $ (43,814 ) Akcea’s net loss attributable to our ownership $ (43,814 ) Ionis’ stand-alone net income 5,882 Net loss available to Ionis common stockholders $ (37,932 ) Weighted average shares outstanding 128,712 Basic net loss per share $ (0.29 ) Three Months Ended September 30 , 2018 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 65,538 $ (0.73 ) $ (47,789 ) Akcea’s net loss attributable to our ownership $ (47,789 ) Ionis’ stand-alone net income 43,226 Net loss available to Ionis common stockholders $ (4,563 ) Weighted average shares outstanding 137,346 Basic net loss per share $ (0.03 ) Three Months Ended December 31 , 2018 Weighted Average Shares Owned in Akcea Akcea s Net Loss Per Share Ionis Portion of Akcea s Net Loss Common shares 67,130 $ (0.79 ) $ (53,219 ) Akcea’s net loss attributable to our ownership $ (53,219 ) Ionis’ stand-alone net income 372,913 Net income available to Ionis common stockholders $ 319,694 Weighted average shares outstanding 137,699 Basic net income per share $ 2.32 (3) We had net income available to Ionis common stockholders for the following periods. 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 each of the periods consisted of the following (in thousands except per share amounts): Three Months Ended March 31, 2019 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 87,543 138,582 $ 0.63 Effect of dilutive securities: Shares issuable upon exercise of stock options — 2,252 Shares issuable upon restricted stock award issuance — 665 Shares issuable related to our ESPP — 38 Shares issuable related to our 1 percent convertible notes — — Income available to Ionis common stockholders, plus assumed conversions $ 87,543 141,537 $ 0.62 Three Months Ended September 30, 2019 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 26,158 140,551 $ 0.19 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,993 Shares issuable upon restricted stock award issuance — 844 Shares issuable related to our ESPP — 20 Shares issuable related to our 1 percent convertible notes — — Income available to Ionis common stockholders, plus assumed conversions $ 26,158 143,408 $ 0.18 Three Months Ended December 31, 2019 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 183,795 140,583 $ 1.31 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,467 Shares issuable upon restricted stock award issuance — 848 Shares issuable related to our ESPP — 18 Shares issuable related to our 0.125 percent convertible notes 644 860 Shares issuable related to our 1 percent convertible notes 12,046 9,527 Income available to Ionis common stockholders, plus assumed conversions $ 196,485 153,303 $ 1.28 Three Months Ended December 31, 2018 Income (Numerator) Shares (Denominator) Per-Share Amount Net income available to Ionis common stockholders $ 319,694 137,699 $ 2.32 Effect of dilutive securities: Shares issuable upon exercise of stock options — 1,254 Shares issuable upon restricted stock award issuance — 636 Shares issuable related to our ESPP — 7 Shares issuable related to our 1 percent convertible notes 10,745 10,260 Income available to Ionis common stockholders, plus assumed conversions $ 330,439 149,856 $ 2.21 For the three months ended March 31, 2019 and September 30, 2019, the calculation excluded the 1 percent notes because the effect on diluted earnings per share was anti-dilutive. |
Organization and Significant _4
Organization and Significant Accounting Policies, Basis of Presentation (Details) - shares shares in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2019 | Jun. 30, 2017 | |
Basis of Presentation [Abstract] | |||
Additional shares of Akcea stock received for license of AKCEA-ANGPTL3-L | 6.9 | 2.8 | |
Akcea [Member] | |||
Basis of Presentation [Abstract] | |||
Percentage ownership | 76.00% | 100.00% | |
Akcea [Member] | Minimum [Member] | |||
Basis of Presentation [Abstract] | |||
Percentage ownership | 68.00% | ||
Akcea [Member] | Maximum [Member] | |||
Basis of Presentation [Abstract] | |||
Percentage ownership | 77.00% |
Organization and Significant _5
Organization and Significant Accounting Policies, Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Basic Net Income per Share [Abstract] | ||||||||||||||||||||
Basic net income (loss) per share (in dollars per share) | $ 1.31 | [1],[2] | $ 0.19 | [1],[2] | $ (0.01) | [1],[2] | $ 0.63 | [1],[2] | $ 2.32 | [1],[2] | $ (0.03) | [1],[2] | $ (0.29) | [1],[2] | $ (0.01) | [1],[2] | $ 2.12 | $ 2.09 | $ 0.15 | |
Net income (loss) | $ 184,415 | $ 26,163 | $ (876) | $ 84,443 | $ 320,078 | $ (4,559) | $ (40,358) | $ (1,420) | $ 294,146 | $ 273,741 | $ 346 | |||||||||
Net income available to Ionis common stockholders | $ 183,795 | $ 26,158 | $ (933) | $ 87,543 | $ 319,694 | $ (4,563) | $ (37,932) | $ (1,212) | $ 296,563 | $ 276,868 | $ 18,792 | |||||||||
Shares used in computing basic net income per share (in shares) | 140,583 | 140,551 | 140,247 | 138,582 | 137,699 | 137,346 | 128,712 | 125,330 | 139,998 | 132,320 | 124,016 | |||||||||
Income available to Ionis common shareholders, plus assumed conversions | $ 196,485 | $ 26,158 | $ 87,543 | $ 330,439 | $ 296,563 | $ 276,868 | $ 18,792 | |||||||||||||
Shares issuable related to our Employee Stock Purchase Plan (in shares) | 18 | 6 | 4 | |||||||||||||||||
Shares used in computing diluted net income per share (in shares) | 153,303 | 143,408 | 141,537 | 149,856 | 142,872 | 134,056 | 126,098 | |||||||||||||
Diluted net income per share (in dollars per share) | $ 1.28 | [2],[3] | $ 0.18 | [2],[3],[4] | $ (0.01) | [2] | $ 0.62 | [2],[3],[4] | $ 2.21 | [2],[3] | $ (0.03) | [2] | $ (0.29) | [2] | $ (0.01) | [2] | $ 2.08 | $ 2.07 | $ 0.15 | |
Stock Options [Member] | ||||||||||||||||||||
Basic Net Income per Share [Abstract] | ||||||||||||||||||||
Shares issuable related to stock-based compensation (in shares) | 1,467 | 1,993 | 2,252 | 1,254 | 2,090 | 1,216 | 1,619 | |||||||||||||
Restricted Stock Awards [Member] | ||||||||||||||||||||
Basic Net Income per Share [Abstract] | ||||||||||||||||||||
Shares issuable related to stock-based compensation (in shares) | 848 | 844 | 665 | 636 | 766 | 514 | 459 | |||||||||||||
Ionis [Member] | ||||||||||||||||||||
Basic Net Income per Share [Abstract] | ||||||||||||||||||||
Net income (loss) | $ 121,552 | $ 49,930 | $ 27,311 | $ 63,697 | $ 372,913 | $ 43,226 | $ 5,882 | $ 18,785 | $ 262,490 | $ 440,806 | $ 110,776 | |||||||||
Preferred Stock [Member] | ||||||||||||||||||||
Basic Net Income per Share [Abstract] | ||||||||||||||||||||
Weighted average shares owned in Akcea (in shares) | 15,748 | |||||||||||||||||||
Basic net income (loss) per share (in dollars per share) | $ (1.80) | |||||||||||||||||||
Net income (loss) | $ (28,346) | |||||||||||||||||||
Akcea [Member] | ||||||||||||||||||||
Basic Net Income per Share [Abstract] | ||||||||||||||||||||
Net income (loss) | $ 34,073 | $ (163,938) | $ (91,984) | |||||||||||||||||
Akcea [Member] | Common Stock [Member] | ||||||||||||||||||||
Basic Net Income per Share [Abstract] | ||||||||||||||||||||
Weighted average shares owned in Akcea (in shares) | 70,100 | 59,812 | 20,669 | |||||||||||||||||
Basic net income (loss) per share (in dollars per share) | $ 0.49 | $ (2.74) | $ (3.08) | |||||||||||||||||
Net income (loss) | $ 34,073 | $ (163,938) | $ (63,638) | |||||||||||||||||
Akcea [Member] | Preferred Stock [Member] | ||||||||||||||||||||
Basic Net Income per Share [Abstract] | ||||||||||||||||||||
Dividend rate | 6.00% | |||||||||||||||||||
Conversion ratio | converted into common stock on a 1:1 basis | |||||||||||||||||||
[1] | As discussed in Note 1, Organization and Significant Accounting Policies, 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. Our basic net income (loss) per share calculation for each of the quarters in 2019 and 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. As a result of this calculation, our total net income (loss) available to Ionis common stockholders for the calculation of net income (loss) per share is different than net income (loss) attributable to Ionis Pharmaceuticals, Inc. common stockholders in the consolidated statements of operations. | |||||||||||||||||||
[2] | We computed net income (loss) per share independently for each of the quarters presented. Therefore, the sum of the quarterly net income (loss) per share will not necessarily equal the total for the year. | |||||||||||||||||||
[3] | We had net income available to Ionis common stockholders for the following periods. 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. | |||||||||||||||||||
[4] | For the three months ended March 31, 2019 and September 30, 2019, the calculation excluded the 1 percent notes because the effect on diluted earnings per share was anti-dilutive. |
Organization and Significant _6
Organization and Significant Accounting Policies, Revenue Recognition (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Oct. 31, 2018USD ($)PerformanceObligation | Feb. 28, 2017USD ($)PerformanceObligation | May 31, 2015USD ($)PerformanceObligation | Sep. 30, 2013USD ($)PerformanceObligation | Dec. 31, 2012USD ($)PerformanceObligation | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($)Agreement | Sep. 30, 2017USD ($)TargetPayment | Jun. 30, 2015USD ($) | Dec. 31, 2019USD ($)PerformanceObligationPayment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Apr. 30, 2018USD ($)PerformanceObligation | |
Revenue Recognition [Abstract] | ||||||||||||||||
Number of performance obligations at inception of contract | PerformanceObligation | 1 | |||||||||||||||
Revenue | $ 1,122,599 | $ 599,674 | $ 514,179 | |||||||||||||
Biogen [Member] | ||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||
Number of agreements | Agreement | 2 | |||||||||||||||
Licensing and Other Royalties [Member] | ||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||
Revenue | $ 17,205 | $ 14,755 | $ 7,474 | |||||||||||||
2013 Strategic Neurology [Member] | ||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||
Revenue | $ (16,500) | |||||||||||||||
Upfront payment received | $ 100,000 | |||||||||||||||
Number of separate performance obligations | PerformanceObligation | 1 | |||||||||||||||
Transaction price | $ 100,000 | |||||||||||||||
2013 Strategic Neurology [Member] | Licensing and Other Royalties [Member] | ||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||
Revenue | $ 35,000 | |||||||||||||||
AstraZeneca [Member] | ||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||
Revenue | 30,000 | |||||||||||||||
Upfront payment received | $ 31,000 | $ 10,000 | ||||||||||||||
Number of separate performance obligations | PerformanceObligation | 4 | |||||||||||||||
IONIS-FB-L for Complement-Mediated Diseases [Member] | ||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||
Upfront payment received | $ 75,000 | $ 75,000 | ||||||||||||||
Number of separate performance obligations | PerformanceObligation | 1 | |||||||||||||||
Transaction price | $ 75,000 | |||||||||||||||
2018 Strategic Neurology [Member] | ||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||
Upfront payment received | $ 375,000 | |||||||||||||||
Number of milestone payments achieved | Payment | 2 | 4 | ||||||||||||||
Milestone payments received and added to transaction price | $ 7,500 | |||||||||||||||
Number of new targets advanced | Target | 2 | |||||||||||||||
Number of separate performance obligations | PerformanceObligation | 1 | |||||||||||||||
Transaction price | $ 552,000 | |||||||||||||||
2012 Neurology [Member] | ||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||
Revenue | 10,000 | $ 6,300 | ||||||||||||||
Upfront payment received | $ 30,000 | |||||||||||||||
2012 Neurology [Member] | Licensing and Other Royalties [Member] | ||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||
Revenue | 45,000 | |||||||||||||||
Pfizer [Member] | ||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||
Revenue | 246,000 | |||||||||||||||
Alnylam [Member] | Licensing and Other Royalties [Member] | ||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||
Upfront payment received | $ 20,000 | |||||||||||||||
Bayer [Member] | ||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||
Revenue | $ 10,000 | |||||||||||||||
Number of separate performance obligations | PerformanceObligation | 3 | |||||||||||||||
Bayer [Member] | ||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||
Upfront payment received | $ 100,000 | $ 100,000 | ||||||||||||||
Number of separate performance obligations | PerformanceObligation | 3 | |||||||||||||||
Bayer [Member] | ||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||
Upfront payment received | $ 75,000 | |||||||||||||||
Transaction price | $ 75,000 |
Organization and Significant _7
Organization and Significant Accounting Policies, Contracts Receivable (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Contracts Receivable [Abstract] | |
Period of time after billing when payment is received | 3 months |
Organization and Significant _8
Organization and Significant Accounting Policies, Deferred Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Revenue [Abstract] | ||
Revenue recognized from amounts in beginning deferred revenue balance | $ 159.5 | $ 105.3 |
Organization and Significant _9
Organization and Significant Accounting Policies, Cost of Products Sold (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cost of Products Sold [Abstract] | ||
Previously expensed costs to produce TEGSEDI related to TEGSEDI commercial revenue | $ 0.7 | $ 0.1 |
Organization and Significant_10
Organization and Significant Accounting Policies, Research, Development and Patent Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Research, Development and Patent Expenses [Abstract] | |||
Research and development expenses | $ 461.5 | $ 411.9 | $ 372.5 |
Patents [Member] | |||
Patents [Abstract] | |||
Estimated useful life | 10 years 3 months 18 days | ||
Cost | $ 34 | 32.7 | |
Accumulated amortization | 8.3 | 8.7 | |
Estimated Amortization Expense [Abstract] | |||
2020 | 1.8 | ||
2021 | 1.8 | ||
2022 | 1.7 | ||
2023 | 1.6 | ||
2024 | 1.4 | ||
Patent expenses | 4.2 | 2.6 | 2.1 |
Non-cash charges related to write-down | 2.2 | 0.8 | 0.4 |
Collaborative Agreements [Member] | |||
Research, Development and Patent Expenses [Abstract] | |||
Research and development expenses | $ 83.2 | $ 58.7 | $ 59.5 |
Organization and Significant_11
Organization and Significant Accounting Policies, Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities [Abstract] | ||
Clincial expenses | $ 24,461 | $ 22,125 |
In-licensing expenses | 10,289 | 12,298 |
Other miscellaneous expenses | 32,019 | 13,080 |
Total accrued liabilities | $ 66,769 | $ 47,503 |
Organization and Significant_12
Organization and Significant Accounting Policies, Noncontrolling Interest in Akcea Therapeutics, Inc. (Details) - shares shares in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2019 | Jun. 30, 2017 | |
Noncontrolling Interest in Akcea Therapeutics, Inc. [Abstract] | |||
Additional shares of Akcea stock received for license of drug | 6.9 | 2.8 | |
Akcea [Member] | |||
Noncontrolling Interest in Akcea Therapeutics, Inc. [Abstract] | |||
Percentage ownership | 76.00% | 100.00% | |
Akcea [Member] | Minimum [Member] | |||
Noncontrolling Interest in Akcea Therapeutics, Inc. [Abstract] | |||
Percentage ownership | 68.00% | ||
Akcea [Member] | Maximum [Member] | |||
Noncontrolling Interest in Akcea Therapeutics, Inc. [Abstract] | |||
Percentage ownership | 77.00% |
Organization and Significant_13
Organization and Significant Accounting Policies, Cash, Cash Equivalents and Investments (Details) | Dec. 31, 2019Company |
Cash, Cash Equivalents and Investments [Abstract] | |
Number of publicly-held companies in which there is an equity ownership interest of less than 20% | 2 |
Number of privately-held companies in which there is an equity ownership interest of less than 20% | 5 |
Organization and Significant_14
Organization and Significant Accounting Policies, Inventory Valuation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory Valuation [Abstract] | |||
Inventory write-off | $ 0 | $ 0 | |
Raw materials | 15,883 | 8,497 | |
Work-in-process | 2,039 | 0 | |
Finished goods | 258 | 85 | |
Total inventory | 18,180 | 8,582 | |
Clinical Member] | |||
Inventory Valuation [Abstract] | |||
Raw materials | 9,363 | 8,497 | |
Commercial [Member] | |||
Inventory Valuation [Abstract] | |||
Raw materials | $ 6,520 | $ 0 |
Organization and Significant_15
Organization and Significant Accounting Policies, Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Less accumulated depreciation | $ (74,013) | $ (61,474) |
Property, plant and equipment, net | 153,651 | 132,160 |
Property, Plant and Equipment, Excluding Land [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | 204,602 | 179,141 |
Property, plant and equipment, net | 130,589 | 117,667 |
Computer Software, Laboratory, Manufacturing and Other Equipment [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 60,965 | 53,496 |
Computer Software, Laboratory, Manufacturing and Other Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful lives | 3 years | |
Computer Software, Laboratory, Manufacturing and Other Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful lives | 10 years | |
Building, Building Improvements and Building Systems [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 119,830 | 97,528 |
Building, Building Improvements and Building Systems [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful lives | 15 years | |
Building, Building Improvements and Building Systems [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful lives | 40 years | |
Land Improvements [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 2,853 | 2,853 |
Estimated useful lives | 20 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 13,600 | 18,981 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful lives | 5 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful lives | 15 years | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 7,354 | 6,283 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful lives | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful lives | 10 years | |
Land [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 23,062 | $ 14,493 |
Organization and Significant_16
Organization and Significant Accounting Policies, Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Right-of-use operating lease assets | $ 12,600 | |
Operating lease liabilities | 17,235 | |
Current portion of operating lease liabilities | $ 2,000 | |
Topic 842 [Member] | ||
Leases [Abstract] | ||
Right-of-use operating lease assets | $ 13,500 | |
Operating lease liabilities | 18,500 | |
Current portion of operating lease liabilities | $ 2,000 |
Organization and Significant_17
Organization and Significant Accounting Policies, Long-Lived Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Long-Lived Assets [Abstract] | |||
Charges related to write-down of long-lived assets | $ 2.2 | $ 0.8 | $ 0.8 |
Organization and Significant_18
Organization and Significant Accounting Policies, Stock-Based Compensation Expense (Details) | 12 Months Ended |
Dec. 31, 2019 | |
RSUs [Member] | |
Stock-Based Compensation Expense [Abstract] | |
Vesting period | 4 years |
Organization and Significant_19
Organization and Significant Accounting Policies, Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Balance | $ 1,187,160 | $ 365,280 | $ 39,613 | |
Net other comprehensive loss for the period | 6,726 | (257) | (1,401) | |
Balance | 1,684,547 | 1,187,160 | 365,280 | |
Income tax expense included in other comprehensive loss | 1,400 | 300 | 0 | |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Balance | (32,016) | (31,759) | (30,358) | |
Balance | (25,290) | (32,016) | (31,759) | |
Unrealized Gains (Losses) on Securities [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Other comprehensive loss before reclassifications, net of tax | [1] | 6,633 | (280) | (960) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | (374) | |
Currency Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Other comprehensive loss before reclassifications, net of tax | $ 93 | $ 23 | $ (67) | |
[1] | A tax benefit of $1.4 million and $0.3 million was included in other comprehensive loss for the years ended December 31, 2019 and 2018, respectively. There was no tax benefit or expense for other comprehensive loss for the year ended December 31, 2017. |
Organization and Significant_20
Organization and Significant Accounting Policies, Convertible Debt (Details) | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
0.125 Percent Convertible Senior Notes [Member] | ||||
Convertible Debt [Abstract] | ||||
Interest rate on convertible senior notes | 0.125% | 0.125% | ||
1 Percent Convertible Senior Notes [Member] | ||||
Convertible Debt [Abstract] | ||||
Interest rate on convertible senior notes | 1.00% | 1.00% | 1.00% | 1.00% |
Organization and Significant_21
Organization and Significant Accounting Policies, Segment Information (Details) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Information [Abstract] | |
Number of operating segments | 2 |
Organization and Significant_22
Organization and Significant Accounting Policies, Fair Value Measurements (Details) - Recurring Basis [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |||
Fair Value Measurements [Abstract] | |||||
Cash equivalents | [1] | $ 418,406 | $ 146,281 | ||
Investment in ProQR Therapeutics N.V. | [2] | 4,506 | 1,349 | ||
Total | 2,258,985 | 2,017,298 | |||
Corporate Debt Securities [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 1,102,568 | [3] | 1,252,960 | [4] | |
Corporate Debt Securities [Member] | Cash and Cash Equivalents [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 19,000 | 50,200 | |||
Debt Securities issued by U.S. Government Agencies [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 329,404 | [5] | 276,612 | [6] | |
Debt Securities issued by U.S. Government Agencies [Member] | Cash and Cash Equivalents [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 800 | ||||
Debt Securities issued by the U.S. Treasury [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 363,694 | [6] | 260,154 | [7] | |
Debt Securities issued by the U.S. Treasury [Member] | Cash and Cash Equivalents [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 14,200 | ||||
Debt Securities issued by States of the U.S. and Political Subdivisions of the States [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | [6] | 40,407 | 79,942 | ||
Quoted Prices in Active Markets (Level 1) [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Cash equivalents | 418,406 | 146,281 | |||
Investment in ProQR Therapeutics N.V. | 0 | 0 | |||
Total | 782,100 | 406,435 | |||
Quoted Prices in Active Markets (Level 1) [Member] | Corporate Debt Securities [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 0 | 0 | |||
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 | |||
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 | 363,694 | 260,154 | |||
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 | |||
Significant Other Observable Inputs (Level 2) [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Cash equivalents | 0 | 0 | |||
Investment in ProQR Therapeutics N.V. | 0 | 0 | |||
Total | 1,472,379 | 1,609,514 | |||
Significant Other Observable Inputs (Level 2) [Member] | Corporate Debt Securities [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 1,102,568 | 1,252,960 | |||
Significant Other Observable Inputs (Level 2) [Member] | Debt Securities issued by U.S. Government Agencies [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 329,404 | 276,612 | |||
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 | |||
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 | 40,407 | 79,942 | |||
Significant Unobservable Inputs (Level 3) [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Cash equivalents | 0 | ||||
Investment in ProQR Therapeutics N.V. | 4,506 | 1,349 | |||
Total | 4,506 | 1,349 | |||
Significant Unobservable Inputs (Level 3) [Member] | Corporate Debt Securities [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Cash equivalents | 0 | ||||
Available-for-sale securities | 0 | 0 | |||
Significant Unobservable Inputs (Level 3) [Member] | Debt Securities issued by U.S. Government Agencies [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 0 | 0 | |||
Significant Unobservable Inputs (Level 3) [Member] | Debt Securities issued by the U.S. Treasury [Member] | |||||
Fair Value Measurements [Abstract] | |||||
Available-for-sale securities | 0 | 0 | |||
Significant Unobservable Inputs (Level 3) [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 | |||
[1] | Included in cash and cash equivalents on our consolidated balance sheet. | ||||
[2] | Included in other current assets on our consolidated balance sheet. | ||||
[3] | $19.0 million included in cash and cash equivalents on our consolidated balance sheet, with the difference included in short-term investments on our consolidated balance sheet. | ||||
[4] | $50.2 million included in cash and cash equivalents on our consolidated balance sheet, with the difference included in short-term investments on our consolidated balance sheet. | ||||
[5] | $0.8 million included in cash and cash equivalents on our consolidated balance sheet, with the difference included in short-term investments on our consolidated balance sheet. | ||||
[6] | Included in short-term investments. | ||||
[7] | $14.2 million included in cash and cash equivalents on our consolidated balance sheet, with the difference included in short-term investments on our consolidated balance sheet. |
Investments, Contract Maturity
Investments, Contract Maturity of Available-for-Sale Securities (Details) | 12 Months Ended |
Dec. 31, 2019Company | |
Contract Maturity of Available-for-Sale Securities [Abstract] | |
One year or less | 70.00% |
After one year but within two years | 20.00% |
After two years but within three and a half years | 10.00% |
Total | 100.00% |
Percentage of available-for-sale securities with a maturity of less than two years | 90.00% |
Maximum contract maturity period, range 1 | 1 year |
Maximum contract maturity period, range 2 | 2 years |
Maximum contract maturity period, range 3 | 3 years 6 months |
Ownership Interests in Private and Public Companies [Abstract] | |
Number of privately-held companies in which there is an equity ownership interest of less than 20% | 5 |
Number of publicly-held companies in which there is an equity ownership interest of less than 20% | 2 |
Investments, Summary of Investm
Investments, Summary of Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | ||||
Summary of Investments [Abstract] | |||||
Cost | $ 1,846,074 | $ 1,874,529 | |||
Gross unrealized gains | 5,007 | 556 | |||
Gross unrealized losses | (1,166) | (4,068) | |||
Estimated fair value | 1,849,915 | 1,871,017 | |||
Available-for-sale Securities [Member] | |||||
Summary of Investments [Abstract] | |||||
Cost | [1] | 1,831,362 | 1,873,317 | ||
Gross unrealized gains | 5,007 | 419 | |||
Gross unrealized losses | (296) | (4,068) | |||
Estimated fair value | 1,836,073 | 1,869,668 | |||
Available-for-sale Securities [Member] | Securities with Maturity of One Year or Less [Member] | |||||
Summary of Investments [Abstract] | |||||
Cost | [1] | 1,206,616 | 1,433,930 | ||
Gross unrealized gains | 2,012 | 31 | |||
Gross unrealized losses | (118) | (2,362) | |||
Estimated fair value | 1,208,510 | 1,431,599 | |||
Available-for-sale Securities [Member] | Securities with Maturity of More than One Year [Member] | |||||
Summary of Investments [Abstract] | |||||
Cost | [1] | 624,746 | 439,387 | ||
Gross unrealized gains | 2,995 | 388 | |||
Gross unrealized losses | (178) | (1,706) | |||
Estimated fair value | 627,563 | 438,069 | |||
Corporate Debt Securities [Member] | Securities with Maturity of One Year or Less [Member] | |||||
Summary of Investments [Abstract] | |||||
Cost | [1],[2] | 669,665 | 956,879 | ||
Gross unrealized gains | 1,451 | 13 | |||
Gross unrealized losses | (43) | (1,858) | |||
Estimated fair value | 671,073 | 955,034 | |||
Corporate Debt Securities [Member] | Securities with Maturity of More than One Year [Member] | |||||
Summary of Investments [Abstract] | |||||
Cost | [1] | 428,627 | 299,018 | ||
Gross unrealized gains | 2,911 | 194 | |||
Gross unrealized losses | (43) | (1,286) | |||
Estimated fair value | 431,495 | 297,926 | |||
Debt Securities issued by U.S. Government Agencies [Member] | Securities with Maturity of One Year or Less [Member] | |||||
Summary of Investments [Abstract] | |||||
Cost | [1] | 188,216 | 168,839 | ||
Gross unrealized gains | 303 | 3 | |||
Gross unrealized losses | (43) | (104) | |||
Estimated fair value | 188,476 | 168,738 | |||
Debt Securities issued by U.S. Government Agencies [Member] | Securities with Maturity of More than One Year [Member] | |||||
Summary of Investments [Abstract] | |||||
Cost | [1] | 140,988 | 107,789 | ||
Gross unrealized gains | 57 | 194 | |||
Gross unrealized losses | (117) | (109) | |||
Estimated fair value | 140,928 | 107,874 | |||
Debt Securities issued by the U.S. Treasury [Member] | Securities with Maturity of One Year or Less [Member] | |||||
Summary of Investments [Abstract] | |||||
Cost | [1] | 327,670 | [2] | 244,640 | |
Gross unrealized gains | 232 | 15 | |||
Gross unrealized losses | (27) | (77) | |||
Estimated fair value | 327,875 | 244,578 | |||
Debt Securities issued by the U.S. Treasury [Member] | Securities with Maturity of More than One Year [Member] | |||||
Summary of Investments [Abstract] | |||||
Cost | [1] | 35,822 | 15,600 | ||
Gross unrealized gains | 9 | 0 | |||
Gross unrealized losses | (12) | (24) | |||
Estimated fair value | 35,819 | 15,576 | |||
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] | 21,065 | 63,572 | [2] | |
Gross unrealized gains | 26 | 0 | |||
Gross unrealized losses | (5) | (323) | |||
Estimated fair value | 21,086 | 63,249 | |||
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] | 19,309 | 16,980 | ||
Gross unrealized gains | 18 | 0 | |||
Gross unrealized losses | (6) | (287) | |||
Estimated fair value | 19,321 | 16,693 | |||
Equity Securities [Member] | |||||
Summary of Investments [Abstract] | |||||
Cost | 14,712 | ||||
Gross unrealized gains | 0 | 137 | |||
Gross unrealized losses | (870) | 0 | |||
Estimated fair value | 13,842 | 1,349 | |||
Equity Securities [Member] | Other Current Assets [Member] | |||||
Summary of Investments [Abstract] | |||||
Cost | [3] | 4,712 | $ 1,212 | ||
Equity Securities [Member] | Deposits and Other Assets [Member] | |||||
Summary of Investments [Abstract] | |||||
Cost | [4] | 10,000 | |||
Equity Securities [Member] | Included in Other Current Assets [Member] | |||||
Summary of Investments [Abstract] | |||||
Gross unrealized gains | 0 | ||||
Gross unrealized losses | (870) | ||||
Estimated fair value | 3,842 | ||||
Equity Securities [Member] | Included in Deposits and Other Assets [Member] | |||||
Summary of Investments [Abstract] | |||||
Gross unrealized gains | 0 | ||||
Gross unrealized losses | 0 | ||||
Estimated fair value | $ 10,000 | ||||
[1] | We hold our available-for-sale securities at amortized cost. | ||||
[2] | Includes investments classified as cash equivalents on our consolidated balance sheet. | ||||
[3] | Our equity securities included in other current assets consisted of our investment in ProQR, which is a public company. We recognize our public company equity securities at fair value. | ||||
[4] | Our equity securities included in deposits and other assets consisted of our investment in Empirico, which is a private company. We recognize our private company equity securities at 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 on our consolidated balance sheet. |
Investments, Investments Tempor
Investments, Investments Temporarily Impaired (Details) $ in Thousands | Dec. 31, 2019USD ($)Investment |
Temporarily Impaired Investments [Abstract] | |
Number of investments | Investment | 113 |
Estimated fair value, less than 12 months of temporary impairment | $ 375,944 |
Unrealized losses, less than 12 months of temporary impairment | (255) |
Estimated fair value, more than 12 months of temporary impairment | 59,184 |
Unrealized losses, more than 12 months of temporary impairment | (41) |
Estimated fair value, total temporary impairment | 435,128 |
Unrealized losses, total temporary impairment | $ (296) |
Corporate Debt Securities [Member] | |
Temporarily Impaired Investments [Abstract] | |
Number of investments | Investment | 49 |
Estimated fair value, less than 12 months of temporary impairment | $ 131,702 |
Unrealized losses, less than 12 months of temporary impairment | (75) |
Estimated fair value, more than 12 months of temporary impairment | 11,840 |
Unrealized losses, more than 12 months of temporary impairment | (11) |
Estimated fair value, total temporary impairment | 143,542 |
Unrealized losses, total temporary impairment | $ (86) |
Debt Securities issued by U.S. Government Agencies [Member] | |
Temporarily Impaired Investments [Abstract] | |
Number of investments | Investment | 43 |
Estimated fair value, less than 12 months of temporary impairment | $ 149,731 |
Unrealized losses, less than 12 months of temporary impairment | (136) |
Estimated fair value, more than 12 months of temporary impairment | 37,041 |
Unrealized losses, more than 12 months of temporary impairment | (24) |
Estimated fair value, total temporary impairment | 186,772 |
Unrealized losses, total temporary impairment | $ (160) |
Debt Securities issued by the U.S. Treasury [Member] | |
Temporarily Impaired Investments [Abstract] | |
Number of investments | Investment | 10 |
Estimated fair value, less than 12 months of temporary impairment | $ 84,270 |
Unrealized losses, less than 12 months of temporary impairment | (39) |
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 | 84,270 |
Unrealized losses, total temporary impairment | $ (39) |
Debt Securities issued by States of the U.S. and Political Subdivisions of the States [Member] | |
Temporarily Impaired Investments [Abstract] | |
Number of investments | Investment | 11 |
Estimated fair value, less than 12 months of temporary impairment | $ 10,241 |
Unrealized losses, less than 12 months of temporary impairment | (5) |
Estimated fair value, more than 12 months of temporary impairment | 10,303 |
Unrealized losses, more than 12 months of temporary impairment | (6) |
Estimated fair value, total temporary impairment | 20,544 |
Unrealized losses, total temporary impairment | $ (11) |
Long-Term Obligations and Com_3
Long-Term Obligations and Commitments, Long-Term Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Long-Term Obligations [Abstract] | |||||
Total long-term obligations, including current portion | $ 787,526 | $ 646,720 | |||
Less: current portion | (2,026) | (13,749) | |||
Total Long-Term Obligations | 785,500 | 632,971 | |||
0.125 Percent Convertible Senior Notes [Member] | |||||
Long-Term Obligations [Abstract] | |||||
Total long-term obligations, including current portion | $ 434,711 | $ 0 | |||
Interest rate on convertible senior notes | 0.125% | 0.125% | |||
1 Percent Convertible Senior Notes [Member] | |||||
Long-Term Obligations [Abstract] | |||||
Total long-term obligations, including current portion | $ 275,333 | $ 568,215 | |||
Interest rate on convertible senior notes | 1.00% | 1.00% | 1.00% | 1.00% | |
Long-term Mortgage Debt [Member] | |||||
Long-Term Obligations [Abstract] | |||||
Total long-term obligations, including current portion | $ 59,913 | $ 59,842 | |||
Fixed Rate Note with Morgan Stanley [Member] | |||||
Long-Term Obligations [Abstract] | |||||
Total long-term obligations, including current portion | 0 | 12,500 | [1] | ||
Less: current portion | (12,500) | ||||
Leases and Other Obligations [Member] | |||||
Long-Term Obligations [Abstract] | |||||
Total long-term obligations, including current portion | $ 17,569 | $ 6,163 | |||
[1] | Our $12.5 million fixed rate note with Morgan Stanley was included in our current portion of long-term obligations on our consolidated balance sheet at December 31, 2018. We paid off our fixed rate note in the third quarter of 2019. |
Long-Term Obligations and Com_4
Long-Term Obligations and Commitments, Convertible Notes (Details) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2019USD ($)shares$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2016USD ($) | Nov. 30, 2014USD ($) | ||
Convertible Notes [Abstract] | |||||||||
Cost of call spread | $ 52,600 | ||||||||
Purchase of note hedges | 108,700 | $ 108,684 | $ 0 | $ 0 | |||||
Proceeds from issuance of warrants | $ 56,100 | $ 56,110 | 0 | 0 | |||||
Conversion price per share, including note hedges (in dollars per share) | $ / shares | $ 123.38 | $ 123.38 | |||||||
Loss on early retirement of debt | $ (21,865) | 0 | 0 | ||||||
Amortization of debt discount and debt issuance costs | $ 39,300 | $ 35,200 | $ 32,500 | ||||||
0.125% Convertible Senior Notes [Member] | |||||||||
Convertible Notes [Abstract] | |||||||||
Maturity date | Dec. 15, 2024 | ||||||||
Interest rate | 0.125% | 0.125% | 0.125% | ||||||
Conversion price per share (in dollars per share) | $ / shares | $ 83.28 | $ 83.28 | |||||||
Total shares of common stock subject to conversion (in shares) | shares | 6.6 | ||||||||
Percentage of principal amount used as purchase price upon occurrence of fundamental change | 100.00% | ||||||||
Principal amount of convertible notes outstanding | $ 548,800 | $ 548,800 | |||||||
Unamortized portion of debt discount | 105,200 | 105,200 | |||||||
Long-term debt | 434,711 | 434,711 | $ 0 | ||||||
Carrying value of equity component | $ 105,800 | $ 105,800 | |||||||
Effective interest rate | 4.90% | 4.90% | |||||||
Amortization period of debt discount | 5 years | ||||||||
0.125% Convertible Senior Notes [Member] | Level 2 [Member] | |||||||||
Convertible Notes [Abstract] | |||||||||
Fair value of outstanding notes | $ 558,700 | $ 558,700 | |||||||
0.125% Convertible Senior Notes [Member] | Borrowing Rate [Member] | |||||||||
Convertible Notes [Abstract] | |||||||||
Nonconvertible debt measurement input rate | 0.044 | 0.044 | |||||||
0.125 Percent Convertible Senior Notes Issued in Exchange for 1 Percent Notes [Member] | |||||||||
Convertible Notes [Abstract] | |||||||||
Face amount of offering | $ 439,300 | $ 439,300 | |||||||
0.125 Percent Convertible Senior Notes Issued under Subscription Agreements [Member] | |||||||||
Convertible Notes [Abstract] | |||||||||
Face amount of offering | 109,500 | 109,500 | |||||||
1% Convertible Senior Notes [Member] | |||||||||
Convertible Notes [Abstract] | |||||||||
Principal amount repurchased | $ 375,600 | $ 375,600 | |||||||
Face amount of offering | $ 185,500 | $ 500,000 | |||||||
Maturity date | Nov. 30, 2021 | ||||||||
Interest rate | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | ||||
Conversion price per share (in dollars per share) | $ / shares | $ 66.81 | $ 66.81 | |||||||
Total shares of common stock subject to conversion (in shares) | shares | 4.6 | ||||||||
Percentage of principal amount used as purchase price upon occurrence of fundamental change | 100.00% | ||||||||
Principal amount of convertible notes outstanding | $ 309,900 | $ 309,900 | $ 685,500 | ||||||
Unamortized portion of debt discount | 32,800 | 32,800 | 110,800 | ||||||
Long-term debt | 275,333 | 275,333 | 568,215 | ||||||
Carrying value of equity component | 33,500 | $ 33,500 | 219,000 | ||||||
Loss on early retirement of debt | $ 21,900 | ||||||||
Effective interest rate | [1] | 7.50% | 7.50% | ||||||
Amortization period of debt discount | 7 years | ||||||||
1% Convertible Senior Notes [Member] | Level 2 [Member] | |||||||||
Convertible Notes [Abstract] | |||||||||
Fair value of outstanding notes | $ 354,800 | $ 354,800 | $ 725,000 | ||||||
1% Convertible Senior Notes [Member] | Borrowing Rate [Member] | |||||||||
Convertible Notes [Abstract] | |||||||||
Nonconvertible debt measurement input rate | 0.074 | 0.074 | |||||||
2 3/4 Percent Convertible Senior Notes [Member] | |||||||||
Convertible Notes [Abstract] | |||||||||
Principal amount repurchased | $ 61,100 | $ 140,000 | |||||||
Interest rate | 2.75% | 2.75% | |||||||
[1] | For our 1% Notes, our effective interest rate represents our effective interest rate after our December 2019 debt exchange. |
Long-Term Obligations and Com_5
Long-Term Obligations and Commitments, Line of Credit Arrangement (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2019 | |
Fixed Rate Note with Morgan Stanley [Member] | ||
Line of Credit Arrangement [Abstract] | ||
Payment of outstanding borrowings | $ 12.5 | |
Morgan Stanley [Member] | Revolving Line of Credit [Member] | ||
Line of Credit Arrangement [Abstract] | ||
Term of agreement | 5 years | |
Maximum borrowing capacity | $ 30 |
Long-Term Obligations and Com_6
Long-Term Obligations and Commitments, Research and Development and Manufacturing Facilities (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Research and Development and Manufacturing Facilities [Abstract] | |||||
Loss on extinguishment of financing liability for leased facility | $ 0 | $ 0 | $ (7,689) | ||
Long-term Mortgage Debt [Member] | |||||
Research and Development and Manufacturing Facilities [Abstract] | |||||
Face amount | $ 60,400 | ||||
Primary R&D Facility [Member] | |||||
Research and Development and Manufacturing Facilities [Abstract] | |||||
Payment to acquire building | $ 79,400 | ||||
Interest rate | 3.88% | ||||
Period to make interest only payments on mortgage loan | 5 years | ||||
Loss on extinguishment of financing liability for leased facility | $ (7,700) | ||||
Manufacturing Facility [Member] | |||||
Research and Development and Manufacturing Facilities [Abstract] | |||||
Payment to acquire building | $ 14,000 | ||||
Interest rate | 4.20% | ||||
Period to make interest only payments on mortgage loan | 5 years |
Long-Term Obligations and Com_7
Long-Term Obligations and Commitments, Maturity Schedules (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Annual Debt and Other Obligation Maturities [Abstract] | ||
Less: current portion | $ (2,026) | $ (13,749) |
Total | 785,500 | $ 632,971 |
Long-Term Obligations, Excluding Financing Liability for Leased Facility [Member] | ||
Annual Debt and Other Obligation Maturities [Abstract] | ||
2020 | 6,260 | |
2021 | 316,114 | |
2022 | 3,495 | |
2023 | 4,180 | |
2024 | 553,006 | |
Thereafter | 64,429 | |
Subtotal | 947,484 | |
Less: current portion | (2,026) | |
Less: fixed and determinable interest | (28,014) | |
Less: unamortized portion of debt discount | (137,975) | |
Plus: lease liabilities | 17,235 | |
Total | $ 796,704 |
Long-Term Obligations and Com_8
Long-Term Obligations and Commitments, Operating Leases (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Option | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Operating Leases [Abstract] | |||
Right-of-use operating lease assets | $ 12,600 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | ||
Operating lease liabilities | $ 17,235 | ||
Weighted average remaining lease term | 8 years 1 month 6 days | ||
Weighted average discount rate | 7.60% | ||
Current portion of operating lease liabilities | $ 2,000 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | ions:LongTermObligationsNoncurrent | ||
Operating lease cash payments | $ 3,900 | ||
Annual Future Payments for Operating Lease Liabilities [Abstract] | |||
2020 | 3,285 | ||
2021 | 3,022 | ||
2022 | 2,781 | ||
2023 | 2,520 | ||
2024 | 2,396 | ||
Thereafter | 9,465 | ||
Total minimum lease payments | 23,469 | ||
Imputed interest | (6,234) | ||
Total operating lease liabilities | 17,235 | ||
Rent expense | $ 3,600 | $ 2,600 | $ 1,700 |
Office and Laboratory Space Adjacent to Manufacturing Facility [Member] | |||
Operating Leases [Abstract] | |||
Number of options to extend lease | Option | 2 | ||
Term of lease extension | 5 years | ||
Office Space Subleased to Akcea [Member] | |||
Operating Leases [Abstract] | |||
Number of options to extend lease | Option | 1 | ||
Term of lease extension | 5 years | ||
Akcea [Member] | Office Space for Corporate Headquarters [Member] | |||
Operating Leases [Abstract] | |||
Term of lease extension | 5 years | ||
Term of lease | 123 months | ||
Period of free rent under lease | 3 months | ||
Tenant improvement allowance | $ 3,800 | ||
Initial amount of letter of credit | 2,400 | ||
Letter of credit on third anniversary of rent commencement date | 1,800 | ||
Letter of credit on fifth anniversary of rent commencement date | $ 1,200 |
Stockholders' Equity, Preferred
Stockholders' Equity, Preferred and Common Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock [Abstract] | |||
Common stock, shares authorized to issue (in shares) | 300,000,000 | 300,000,000 | |
Common stock, shares issued (in shares) | 140,339,615 | 137,928,828 | |
Common stock, shares outstanding (in shares) | 140,339,615 | 137,928,828 | |
Net proceeds from stock option exercises, vesting of restricted stock units, and ESPP purchases | $ 119,657 | $ 27,900 | $ 22,931 |
Preferred Stock [Member] | |||
Preferred Stock [Abstract] | |||
Preferred stock, shares authorized (in shares) | 15,000,000 | ||
Preferred stock, shares outstanding (in shares) | 0 | ||
Series C Junior Participating Preferred Stock [Member] | |||
Preferred Stock [Abstract] | |||
Preferred stock, shares issued (in shares) | 0 | ||
Preferred stock, shares outstanding (in shares) | 0 | ||
Common Stock [Member] | |||
Common Stock [Abstract] | |||
Common stock, shares authorized to issue (in shares) | 300,000,000 | 300,000,000 | |
Common stock, shares issued (in shares) | 140,300,000 | 137,900,000 | |
Common stock, shares outstanding (in shares) | 140,300,000 | 137,900,000 | |
Common shares reserved for future issuance (in shares) | 26,200,000 | ||
Number of shares issued for stock option exercises, vesting of restricted stock units, and ESPP purchases (in shares) | 3,100,000 | 1,500,000 | 1,700,000 |
Net proceeds from stock option exercises, vesting of restricted stock units, and ESPP purchases | $ 119,700 | $ 27,900 | $ 22,900 |
Stockholders' Equity, Share Rep
Stockholders' Equity, Share Repurchase Program (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 02, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | |
Share Repurchase Program [Abstract] | ||||||
Authorized amount of share repurchase program | $ 125,000 | |||||
Shares repurchased (in shares) | 535,000 | |||||
Shares repurchased | $ 34,400 | $ 34,392 | $ 0 | $ 0 | ||
Subsequent Event [Member] | ||||||
Share Repurchase Program [Abstract] | ||||||
Shares repurchased (in shares) | 1,500,000 | |||||
Shares repurchased | $ 90,600 |
Stockholders' Equity, Stock Pla
Stockholders' Equity, Stock Plans (Details) | 1 Months Ended | 12 Months Ended | |||||
Jun. 30, 2009shares | Dec. 31, 2019OfficerInstallment$ / sharesshares | Jun. 30, 2019shares | Dec. 31, 2018shares | May 31, 2017shares | Jun. 30, 2015shares | May 31, 2015shares | |
Stock Options [Member] | |||||||
Stock Plans [Abstract] | |||||||
Number of options outstanding (in shares) | 11,001,000 | 11,311,000 | |||||
Number of options exercisable (in shares) | 6,004,000 | ||||||
Restricted Stock Units [Member] | |||||||
Stock Plans [Abstract] | |||||||
Vesting period | 4 years | ||||||
1989 Stock Option Plan [Member] | |||||||
Stock Plans [Abstract] | |||||||
Number of shares authorized (in shares) | 20,000,000 | ||||||
Vesting period | 4 years | ||||||
Award term | 7 years | ||||||
Number of options outstanding (in shares) | 100,000 | ||||||
Number of options exercisable (in shares) | 100,000 | ||||||
Number of shares available for grant (in shares) | 40,000 | ||||||
1989 Stock Option Plan [Member] | Stock Options [Member] | One Year from Date of Grant [Member] | |||||||
Stock Plans [Abstract] | |||||||
Vesting percentage | 25.00% | ||||||
Period before options are exercisable | 1 year | ||||||
2011 Equity Incentive Plan [Member] | |||||||
Stock Plans [Abstract] | |||||||
Number of shares authorized (in shares) | 23,000,000 | 16,000,000 | 11,000,000 | 5,500,000 | |||
Number of options outstanding (in shares) | 10,000,000 | ||||||
Number of options exercisable (in shares) | 5,400,000 | ||||||
Number of awards outstanding (in shares) | 1,700,000 | ||||||
Number of shares available for grant (in shares) | 7,400,000 | ||||||
Number of executive officers terminated before change in control when vesting will accelerate for executive officers | Officer | 1 | ||||||
Period before change in control when vesting will accelerate for executive officers | 3 months | ||||||
Period after change in control when vesting will accelerate for executive officers | 12 months | ||||||
2011 Equity Incentive Plan [Member] | Stock Options [Member] | Minimum [Member] | |||||||
Stock Plans [Abstract] | |||||||
Vesting period | 2 years | ||||||
2011 Equity Incentive Plan [Member] | Restricted Stock Units [Member] | |||||||
Stock Plans [Abstract] | |||||||
Vesting period | 4 years | ||||||
2011 Equity Incentive Plan [Member] | Restricted Stock Units [Member] | Minimum [Member] | |||||||
Stock Plans [Abstract] | |||||||
Vesting period | 3 years | ||||||
2002 Non-Employee Directors' Stock Option Plan [Member] | |||||||
Stock Plans [Abstract] | |||||||
Number of shares authorized (in shares) | 2,000,000 | 1,200,000 | |||||
Award term | 10 years | ||||||
Number of options outstanding (in shares) | 900,000 | ||||||
Number of options exercisable (in shares) | 500,000 | ||||||
Number of awards outstanding (in shares) | 100,000 | ||||||
Number of shares available for grant (in shares) | 100,000 | ||||||
2002 Non-Employee Directors' Stock Option Plan [Member] | One Year from Date of Grant [Member] | |||||||
Stock Plans [Abstract] | |||||||
Number of equal annual installments over which options become exercisable | Installment | 4 | ||||||
2002 Non-Employee Directors' Stock Option Plan [Member] | Stock Options [Member] | One Year from Date of Grant [Member] | |||||||
Stock Plans [Abstract] | |||||||
Period before options are exercisable | 1 year | ||||||
Employee Stock Purchase Plan [Member] | |||||||
Stock Plans [Abstract] | |||||||
Number of shares authorized (in shares) | 3,700,000 | ||||||
Number of shares available for grant (in shares) | 700,000 | ||||||
Number of additional shares reserved for issuance (in shares) | 150,000 | 150,000 | |||||
Maximum percentage of employee compensation used to purchase shares | 10.00% | ||||||
Percentage of fair market value used to determine purchase price of stock | 85.00% | ||||||
Holding period for purchased stock | 6 months | ||||||
Shares purchased and issued under ESPP (in shares) | 50,000 | ||||||
Purchase price (in dollars per share) | $ / shares | $ 40.95 |
Stockholders' Equity, Stock Opt
Stockholders' Equity, Stock Option Activity (Details) - Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares [Abstract] | |||
Outstanding at beginning of period (in shares) | 11,311 | ||
Granted (in shares) | 2,543 | ||
Exercised (in shares) | (2,617) | ||
Cancelled/forfeited/expired (in shares) | (236) | ||
Outstanding at end of period (in shares) | 11,001 | 11,311 | |
Exercisable at end of period (in shares) | 6,004 | ||
Weighted Average Exercise Price Per Share [Abstract] | |||
Outstanding at beginning of period (in dollars per share) | $ 47.85 | ||
Granted (in dollars per share) | 56.19 | ||
Exercised (in dollars per share) | 40.48 | ||
Cancelled/forfeited/expired (in dollars per share) | 50.11 | ||
Outstanding at end of period (in dollars per share) | 51.48 | $ 47.85 | |
Exercisable at end of period (in dollars per share) | $ 50.95 | ||
Average Remaining Contractual Term, Aggregate Intrinsic Value and Other [Abstract] | |||
Average remaining contractual term, outstanding at end of period | 4 years 4 months 28 days | ||
Average remaining contractual term, exercisable at end of period | 3 years 4 months 2 days | ||
Aggregate intrinsic value, outstanding at end of period | $ 104,029 | ||
Aggregate intrinsic value, exercisable at end of period | $ 59,780 | ||
Weighted average fair value of options granted (in dollars per share) | $ 28.76 | $ 25.49 | $ 25.42 |
Intrinsic value of options exercised | $ 83,800 | $ 34,800 | $ 49,500 |
Cash received from exercise of stock options | $ 105,900 | $ 18,900 | $ 21,200 |
Weighted-average fair value of options exercised (in dollars per share) | $ 72.52 | ||
Unrecognized Compensation Expense [Abstract] | |||
Unrecognized compensation expense related to non-vested stock options | $ 97,500 | ||
Weighted average period for recognition | 1 year 3 months 18 days |
Stockholders' Equity, Restricte
Stockholders' Equity, Restricted Stock Unit Activity (Details) - Restricted Stock Units [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares [Abstract] | |||
Non-vested at beginning of period (in shares) | 1,246 | ||
Granted (in shares) | 1,114 | ||
Vested (in shares) | (422) | ||
Cancelled/forfeited (in shares) | (72) | ||
Non-vested at end of period (in shares) | 1,866 | 1,246 | |
Weighted Average Grant Date Fair Value per Share [Abstract] | |||
Non-vested at beginning of period (in dollars per share) | $ 50.20 | ||
Granted (in dollars per share) | 60.23 | $ 51.06 | $ 48.88 |
Vested (in dollars per share) | 51.36 | ||
Cancelled/forfeited (in dollars per share) | 53.39 | ||
Non-vested at end of period (in dollars per share) | $ 55.80 | $ 50.20 | |
Unrecognized Compensation Expense [Abstract] | |||
Unrecognized compensation cost related to non-vested RSUs | $ 56.5 | ||
Weighted average period for recognition | 1 year 6 months |
Stockholders' Equity, Stock-bas
Stockholders' Equity, Stock-based Compensation Expense (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($)Officer | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Stock-Based Compensation [Abstract] | ||||
Stock-based compensation expense | $ 146,574 | $ 131,312 | $ 85,975 | |
Cost of Products Sold [Member] | ||||
Stock-Based Compensation [Abstract] | ||||
Stock-based compensation expense | 438 | 160 | 0 | |
Research, Development and Patent [Member] | ||||
Stock-Based Compensation [Abstract] | ||||
Stock-based compensation expense | 95,348 | 76,557 | 64,521 | |
Selling, General and Administrative [Member] | ||||
Stock-Based Compensation [Abstract] | ||||
Stock-based compensation expense | 50,788 | 54,595 | 21,454 | |
Akcea [Member] | ||||
Stock-Based Compensation [Abstract] | ||||
Stock-based compensation expense | $ (19,100) | $ 37,100 | $ 44,300 | $ 17,500 |
Number of executive officers terminating employment | Officer | 3 |
Stockholders' Equity, Stock-b_2
Stockholders' Equity, Stock-based Valuation Information (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Stock Options [Member] | |||
Weighted-Average Assumptions [Abstract] | |||
Risk-free interest rate | 2.30% | 2.40% | 1.80% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 60.30% | 63.00% | 65.90% |
Expected life | 4 years 9 months 18 days | 4 years 7 months 6 days | 4 years 6 months |
Board of Director Stock Options [Member] | |||
Weighted-Average Assumptions [Abstract] | |||
Risk-free interest rate | 1.90% | 2.80% | 2.20% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 60.70% | 61.50% | 61.20% |
Expected life | 6 years 7 months 6 days | 6 years 7 months 6 days | 6 years 7 months 6 days |
ESPP [Member] | |||
Weighted-Average Assumptions [Abstract] | |||
Risk-free interest rate | 2.40% | 1.80% | 0.80% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 45.60% | 47.30% | 59.90% |
Expected life | 6 months | 6 months | 6 months |
Akcea [Member] | Employee Stock Options [Member] | |||
Weighted-Average Assumptions [Abstract] | |||
Risk-free interest rate | 2.20% | 2.80% | 1.90% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 75.40% | 77.10% | 79.50% |
Expected life | 6 years 1 month 2 days | 6 years 29 days | 6 years 21 days |
Akcea [Member] | Board of Director Stock Options [Member] | |||
Weighted-Average Assumptions [Abstract] | |||
Risk-free interest rate | 1.80% | 2.90% | 1.90% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 73.80% | 78.20% | 79.40% |
Expected life | 6 years 3 months | 6 years 5 months 1 day | 6 years 3 months |
Akcea [Member] | ESPP [Member] | |||
Weighted-Average Assumptions [Abstract] | |||
Risk-free interest rate | 2.40% | 1.90% | 1.10% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 60.00% | 64.20% | 73.30% |
Expected life | 6 months | 6 months | 6 months |
Income Taxes, Income (Loss) Bef
Income Taxes, Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
United States | $ 344,280 | $ (69,576) | $ (5,289) |
Foreign | 2,489 | (6,580) | (11,474) |
Income (loss) before income tax benefit (expense) | $ 346,769 | $ (76,156) | $ (16,763) |
Income Taxes, Income Tax Expens
Income Taxes, Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current [Abstract] | |||
Federal | $ 35,861 | $ 438 | $ (7,460) |
State | 14,329 | (1,442) | 1,246 |
Foreign | 413 | 374 | 234 |
Total current income tax expense (benefit) | 50,603 | (630) | (5,980) |
Deferred [Abstract] | |||
Federal | (7,096) | (290,511) | 0 |
State | 0 | 0 | 0 |
Total deferred income benefit | (7,096) | (290,511) | 0 |
Income tax expense (benefit) | $ 43,507 | $ (291,141) | $ (5,980) |
Income Taxes, Reconciliation of
Income Taxes, Reconciliation of Statutory to Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation Between Effective and Statutory Tax Rate [Abstract] | ||||
Pre-tax income (loss) | $ 346,769 | $ (76,156) | $ (16,763) | |
Statutory rate | 72,822 | (15,993) | (5,867) | |
State income tax net of federal benefit | 49,119 | (2,202) | 820 | |
Foreign | 340 | 1,735 | 4,299 | |
Net change in valuation allowance | $ 332,100 | (37,765) | (277,924) | (86,296) |
Net operating loss expiration | 0 | 8,864 | 3,987 | |
TEGSEDI licensing gain | 0 | 59,583 | 0 | |
Impact from outside basis differences | (16,344) | 0 | 0 | |
Tax credits | (22,296) | (73,362) | (32,769) | |
Deferred tax true-up | 646 | 9,947 | 4,848 | |
Tax rate change | 1,811 | (1,808) | 114,832 | |
Non-deductible compensation | 3,361 | 3,154 | 1,575 | |
Other non-deductible items | 329 | (569) | 2,548 | |
Akcea deconsolidation adjustment at IPO | 0 | 0 | 469 | |
Stock-based compensation | (4,837) | (4,199) | (14,337) | |
Foreign-derived intangible income benefit | (2,071) | 0 | 0 | |
Other | (1,608) | 1,633 | (89) | |
Income tax expense (benefit) | $ 43,507 | $ (291,141) | $ (5,980) | |
Reconciliation Between Effective and Statutory Tax Rate Percentage [Abstract] | ||||
Statutory rate | 21.00% | 21.00% | 35.00% | |
State income tax net of federal benefit | 14.20% | 2.90% | (4.90%) | |
Foreign | 0.10% | (2.30%) | (25.60%) | |
Net change in valuation allowance | (10.90%) | 364.90% | 514.80% | |
Net operating loss expiration | 0.00% | (11.60%) | (23.80%) | |
TEGSEDI licensing gain | 0.00% | (78.20%) | 0.00% | |
Impact from outside basis differences | (4.70%) | 0.00% | 0.00% | |
Tax credits | (6.40%) | 96.30% | 195.50% | |
Deferred tax true-up | 0.20% | (13.10%) | (28.90%) | |
Tax rate change | 0.50% | 2.40% | (685.00%) | |
Non-deductible compensation | 1.00% | (4.10%) | (9.40%) | |
Other nondeductible items | 0.10% | 0.70% | (15.20%) | |
Akcea deconsolidation adjustment at IPO | 0.00% | 0.00% | (2.80%) | |
Stock-based compensation | (1.40%) | 5.50% | 85.50% | |
Foreign-derived intangible income benefit | (0.60%) | 0.00% | 0.00% | |
Other | (0.50%) | (2.10%) | 0.50% | |
Effective rate | 12.60% | 382.30% | 35.70% |
Income Taxes, Deferred Tax Asse
Income Taxes, Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Tax Assets [Abstract] | ||||
Net operating loss carryovers | $ 89,717 | $ 20,191 | $ 89,717 | |
R&D credits | 313,652 | 210,455 | 313,652 | |
Deferred revenue | 27,381 | 127,763 | 27,381 | |
Stock-based compensation | 61,027 | 65,703 | 61,027 | |
Intangible and capital assets | 49,007 | 77,861 | 49,007 | |
Other | 8,275 | 12,510 | 8,275 | |
Total deferred tax assets | 549,059 | 514,483 | 549,059 | |
Deferred Tax Liabilities [Abstract] | ||||
Convertible debt | (24,018) | (6,110) | (24,018) | |
Fixed assets | 0 | (1,958) | 0 | |
Other | 0 | (3,884) | 0 | |
Net deferred tax asset | 525,041 | 502,531 | 525,041 | |
Valuation allowance | (234,245) | (196,974) | (234,245) | |
Total net deferred tax assets and liabilities | 290,796 | 305,557 | 290,796 | |
One-time non-cash tax benefit related to reversal of valuation allowance | $ 332,100 | (37,765) | $ (277,924) | $ (86,296) |
Decrease in valuation allowance | (37,300) | |||
Decrease in combined state tax liability | $ (59,100) |
Income Taxes, Tax Credit Carryf
Income Taxes, Tax Credit Carryforwards (Details) $ in Millions | Dec. 31, 2019USD ($) |
Federal [Member] | |
Operating Loss Carryforwards [Abstract] | |
Net operating loss carryforwards | $ 99.5 |
Federal [Member] | Research and Development [Member] | |
Tax Credit Carryforwards [Abstract] | |
Tax credit carryforwards | 198.8 |
California [Member] | |
Operating Loss Carryforwards [Abstract] | |
Net operating loss carryforwards | 117.9 |
California [Member] | Research and Development [Member] | |
Tax Credit Carryforwards [Abstract] | |
Tax credit carryforwards | $ 74.1 |
Income Taxes, Tax Act (Details)
Income Taxes, Tax Act (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
U.S. federal corporate tax rate | 21.00% | 21.00% | 35.00% |
Income Taxes, Gross Unrecognize
Income Taxes, Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gross Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance of unrecognized tax benefits | $ 68,301 | $ 78,014 | $ 66,999 |
Decrease for prior period tax positions | (867) | (12,814) | 0 |
Increase for prior period tax positions | 736 | 0 | 1,520 |
Increase for current period tax positions | 1,614 | 3,101 | 9,495 |
Ending balance of unrecognized tax benefits | 69,784 | $ 68,301 | $ 78,014 |
Unrecognized tax benefits that could impact effective tax rate, if recognized | 21,700 | ||
Interest and penalties on unrecognized tax benefits | $ 0 |
Collaborative Arrangements an_3
Collaborative Arrangements and Licensing Agreements, Biogen (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019USD ($)DrugCountry | Dec. 31, 2017USD ($)PerformanceObligation | Sep. 30, 2013USD ($)PerformanceObligation | Dec. 31, 2012USD ($)ProgramTarget | Feb. 26, 2020USD ($) | Dec. 31, 2019USD ($)DrugCountryTarget | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2017Payment | Dec. 31, 2019USD ($)DrugPaymentTargetCountry | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)PerformanceObligation | Apr. 30, 2018USD ($)PerformanceObligation | |
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Revenue | $ 1,122,599 | $ 599,674 | $ 514,179 | |||||||||||||
SPINRAZA Royalties [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Revenue | 292,992 | 237,930 | 112,540 | |||||||||||||
Licensing and Other Royalties [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Revenue | 17,205 | 14,755 | 7,474 | |||||||||||||
R&D Revenue [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Revenue | $ 770,149 | 344,752 | 394,165 | |||||||||||||
Biogen [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Number of drugs currently being developed | Drug | 8 | 8 | 8 | |||||||||||||
Cumulative payments received | $ 2,400,000 | $ 2,400,000 | $ 2,400,000 | |||||||||||||
Revenue | 473,600 | 375,000 | $ 263,100 | |||||||||||||
Deferred revenue | $ 525,800 | $ 525,800 | $ 580,900 | $ 525,800 | $ 580,900 | |||||||||||
Biogen [Member] | Revenue [Member] | Strategic Partner [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Concentration percentage | 42.00% | 63.00% | 51.00% | |||||||||||||
Biogen [Member] | SPINRAZA Royalties [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Revenue | $ 293,000 | $ 237,900 | $ 112,500 | |||||||||||||
Biogen [Member] | R&D Revenue [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Revenue | $ 180,600 | $ 137,100 | 150,600 | |||||||||||||
SPINRAZA [Member] | Minimum [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Number of countries where SPINRAZA is approved for use | Country | 50 | 50 | 50 | |||||||||||||
Cumulative revenue earned | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||||||||||||
Royalty percentage received on net sales of drug | 11.00% | |||||||||||||||
SPINRAZA [Member] | Maximum [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Royalty percentage received on net sales of drug | 15.00% | |||||||||||||||
SPINRAZA [Member] | SPINRAZA Royalties [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Cumulative revenue earned | 640,000 | 640,000 | $ 640,000 | |||||||||||||
SPINRAZA [Member] | R&D Revenue [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Cumulative revenue earned | 435,000 | 435,000 | $ 435,000 | |||||||||||||
Revenue | $ 90,000 | |||||||||||||||
New Antisense Medicines for the Treatment of SMA [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Royalty percentage received on net sales of drug | 20.00% | |||||||||||||||
Upfront payment received | $ 25,000 | |||||||||||||||
Maximum amount of payments receivable for license fees and milestones | 1,200,000 | 1,200,000 | $ 1,200,000 | |||||||||||||
Maximum amount of payments receivable for development milestones | 80,000 | 80,000 | 80,000 | |||||||||||||
Maximum amount of payments receivable for commercialization milestones | 180,000 | 180,000 | 180,000 | |||||||||||||
Maximum amount of payments receivable for sales milestones | 800,000 | 800,000 | 800,000 | |||||||||||||
Next prospective payment | 60,000 | 60,000 | 60,000 | |||||||||||||
Number of separate performance obligations | PerformanceObligation | 1 | 1 | ||||||||||||||
Transaction price | $ 25,000 | $ 25,000 | ||||||||||||||
Revenue | 8,300 | |||||||||||||||
2018 Strategic Neurology [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Cumulative payments received | 1,000,000 | 1,000,000 | $ 1,000,000 | |||||||||||||
Upfront payment received, including purchase of stock | $ 1,000,000 | |||||||||||||||
Royalty percentage received on net sales of drug | 20.00% | |||||||||||||||
Upfront payment received | 375,000 | |||||||||||||||
Next prospective payment | 7,500 | 7,500 | $ 7,500 | |||||||||||||
Number of separate performance obligations | PerformanceObligation | 1 | |||||||||||||||
Transaction price | $ 552,000 | |||||||||||||||
Term of collaboration agreement | 10 years | |||||||||||||||
Proceeds from issuance of common stock | $ 625,000 | |||||||||||||||
Percentage cash premium paid on shares purchased | 25.00% | |||||||||||||||
Maximum amount of payments receivable per drug for substantive milestone payments | 270,000 | $ 270,000 | $ 270,000 | |||||||||||||
Number of targets advanced | Target | 2 | 4 | ||||||||||||||
Premium paid on shares purchased | $ 177,000 | |||||||||||||||
Number of milestone payments achieved | Payment | 2 | 4 | ||||||||||||||
Cumulative payments included in transaction price for performance obligation | 597,000 | $ 597,000 | $ 597,000 | |||||||||||||
Payments included in transaction price for performance obligation | 7,500 | |||||||||||||||
Milestone payment achieved | 15,000 | |||||||||||||||
2013 Strategic Neurology [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Cumulative payments received | 240,000 | 240,000 | 240,000 | |||||||||||||
Upfront payment received | $ 100,000 | |||||||||||||||
Next prospective payment | $ 10,000 | $ 10,000 | $ 10,000 | |||||||||||||
Number of separate performance obligations | PerformanceObligation | 1 | |||||||||||||||
Transaction price | $ 100,000 | |||||||||||||||
Number of drugs currently being advanced | Drug | 5 | 5 | 5 | |||||||||||||
Revenue | $ (16,500) | |||||||||||||||
2013 Strategic Neurology [Member] | Licensing and Other Royalties [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Revenue | 35,000 | |||||||||||||||
2013 Strategic Neurology [Member] | R&D Revenue [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Cumulative payments included in transaction price for performance obligation | $ 145,000 | $ 145,000 | $ 145,000 | |||||||||||||
2013 Strategic Neurology [Member] | Medicines for ALS [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Number of drugs currently being advanced | Drug | 2 | 2 | 2 | |||||||||||||
Number of drugs licensed under option | Drug | 1 | |||||||||||||||
2013 Strategic Neurology [Member] | Medicines for Undisclosed Targets [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Number of drugs currently being advanced | Drug | 2 | 2 | 2 | |||||||||||||
2013 Strategic Neurology [Member] | Antisense Molecule [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Maximum amount of payments receivable per program for license fee and milestone payments | $ 260,000 | $ 260,000 | $ 260,000 | |||||||||||||
Maximum amount of payments receivable per program for development milestones | 60,000 | 60,000 | 60,000 | |||||||||||||
Maximum amount of payments receivable per program for regulatory milestones | 130,000 | 130,000 | 130,000 | |||||||||||||
2013 Strategic Neurology [Member] | IONIS-C9 [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Revenue | 10,000 | $ 10,000 | ||||||||||||||
2013 Strategic Neurology [Member] | Tofersen [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Revenue | $ 5,000 | |||||||||||||||
2013 Strategic Neurology [Member] | ION859 [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Revenue | 8,000 | |||||||||||||||
2012 Neurology [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Cumulative payments received | 130,000 | 130,000 | 130,000 | |||||||||||||
Upfront payment received | $ 30,000 | |||||||||||||||
Next prospective payment | 12,000 | 12,000 | 12,000 | |||||||||||||
Maximum amount of payments receivable per program for license fee and milestone payments | 210,000 | 210,000 | 210,000 | |||||||||||||
Maximum amount of payments receivable per program for development milestones | 10,000 | 10,000 | 10,000 | |||||||||||||
Maximum amount of payments receivable per program for regulatory milestones | 130,000 | 130,000 | 130,000 | |||||||||||||
Number of drugs to be developed and commercialized | Target | 3 | |||||||||||||||
Number of programs under which drugs are to be developed and commercialized | Program | 3 | |||||||||||||||
Revenue | 10,000 | $ 6,300 | ||||||||||||||
2012 Neurology [Member] | Subsequent Event [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Revenue | $ 7,500 | |||||||||||||||
2012 Neurology [Member] | Licensing and Other Royalties [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Revenue | 45,000 | |||||||||||||||
2012 Neurology [Member] | R&D Revenue [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Cumulative payments included in transaction price for performance obligation | 40,000 | 40,000 | 40,000 | |||||||||||||
2012 Neurology [Member] | IONIS-MAPT [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Cumulative payments included in transaction price for performance obligation | $ 37,500 | 37,500 | $ 37,500 | |||||||||||||
Milestone payment achieved | 12,000 | $ 7,500 | ||||||||||||||
Revenue | 45,000 | |||||||||||||||
2012 Neurology [Member] | ION581 [Member] | ||||||||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||||||||
Revenue | $ 10,000 |
Collaborative Arrangements an_4
Collaborative Arrangements and Licensing Agreements, AstraZeneca (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Jul. 31, 2015USD ($)PerformanceObligation | Dec. 31, 2012USD ($)PerformanceObligation | Dec. 31, 2019USD ($)Drug | Dec. 31, 2018USD ($)Program | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($)LicenseFee | Dec. 31, 2019USD ($)Drug | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2014PerformanceObligation | |
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Revenue | $ 1,122,599 | $ 599,674 | $ 514,179 | |||||||
R&D Revenue [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Revenue | 770,149 | 344,752 | $ 394,165 | |||||||
AstraZeneca [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Deferred revenue | $ 25,000 | $ 40,100 | $ 25,000 | $ 40,100 | ||||||
AstraZeneca [Member] | Revenue [Member] | Strategic Partner [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Concentration percentage | 3.00% | 20.00% | 4.00% | |||||||
AstraZeneca [Member] | R&D Revenue [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Revenue | $ 28,100 | $ 120,700 | $ 21,600 | |||||||
Cardiovascular, Renal and Metabolic Diseases [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Number of licensed drugs | Drug | 3 | 3 | ||||||||
Upfront payment received | $ 65,000 | |||||||||
Minimum amount of payments receivable for license fees and milestones | $ 4,000,000 | $ 4,000,000 | ||||||||
Maximum amount of payments receivable for development milestones | 1,100,000 | 1,100,000 | ||||||||
Maximum amount of payments receivable for regulatory milestones | 2,900,000 | 2,900,000 | ||||||||
Next prospective payment | 10,000 | 10,000 | ||||||||
Cumulative payments received | 175,000 | 175,000 | ||||||||
Number of separate performance obligations | PerformanceObligation | 1 | |||||||||
Transaction price | $ 65,000 | |||||||||
Number of license fees earned | LicenseFee | 2 | |||||||||
Revenue | $ 10,000 | $ 10,000 | ||||||||
Cardiovascular, Renal and Metabolic Diseases [Member] | ION532 [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Revenue | $ 30,000 | |||||||||
Cardiovascular, Renal and Metabolic Diseases [Member] | IOIN839 [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Revenue | $ 30,000 | |||||||||
Cardiovascular, Renal and Metabolic Diseases [Member] | R&D Revenue [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Cumulative payments included in transaction price for performance obligation | 90,000 | 90,000 | ||||||||
Oncology [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Upfront payment received | $ 31,000 | 10,000 | ||||||||
Minimum amount of payments receivable for license fees and milestones | 450,000 | 450,000 | ||||||||
Maximum amount of payments receivable for development milestones | 152,000 | 152,000 | ||||||||
Maximum amount of payments receivable for regulatory milestones | 275,000 | 275,000 | ||||||||
Cumulative payments received | 125,000 | 125,000 | ||||||||
Number of separate performance obligations | PerformanceObligation | 4 | |||||||||
Number of performance obligations completed | PerformanceObligation | 3 | |||||||||
Number of programs advanced | Program | 2 | |||||||||
Revenue | $ 30,000 | |||||||||
Oncology [Member] | Maximum [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Next prospective payment | $ 25,000 | $ 25,000 | ||||||||
Oncology [Member] | Danvatirsen [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Revenue | 17,500 | |||||||||
Oncology [Member] | ION736 [Member] | ||||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||||
Revenue | $ 10,000 |
Collaborative Arrangements an_5
Collaborative Arrangements and Licensing Agreements, Bayer (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 28, 2017USD ($)PerformanceObligation | May 31, 2015USD ($)PerformanceObligation | Dec. 31, 2019USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue | $ 1,122,599 | $ 599,674 | $ 514,179 | ||||
R&D Revenue [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue | 770,149 | 344,752 | $ 394,165 | ||||
Bayer [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Number of separate performance obligations | PerformanceObligation | 3 | ||||||
Revenue | $ 10,000 | ||||||
Deferred revenue | 2,400 | $ 2,400 | $ 4,300 | ||||
Bayer [Member] | Revenue [Member] | Strategic Partner [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Concentration percentage | 1.00% | 1.00% | 13.00% | ||||
Bayer [Member] | R&D Revenue [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue | $ 14,300 | $ 5,000 | $ 67,100 | ||||
Bayer [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Upfront payment received | $ 100,000 | $ 100,000 | |||||
Maximum amount of payments receivable for license fees and milestones | 385,000 | 385,000 | |||||
Maximum amount of payments receivable for development milestones | 125,000 | 125,000 | |||||
Maximum amount of payments receivable for commercialization milestones | 110,000 | $ 110,000 | |||||
Royalty percentage received on gross margins of both drugs combined | 20.00% | ||||||
Cumulative payments received | 185,000 | $ 185,000 | |||||
Next prospective milestone | $ 20,000 | $ 20,000 | |||||
Number of separate performance obligations | PerformanceObligation | 3 | ||||||
Bayer [Member] | R&D Services for IONIS-FXI-L [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Transaction price | $ 10,100 | ||||||
Bayer [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Upfront payment received | 75,000 | ||||||
Payment received for advancing programs | $ 75,000 | ||||||
Number of new performance obligations | PerformanceObligation | 2 | ||||||
Transaction price | $ 75,000 | ||||||
Bayer [Member] | IONIS-FXI-L [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Number of new performance obligations | PerformanceObligation | 1 | ||||||
Transaction price | $ 64,900 | ||||||
Bayer [Member] | R&D Services for IONIS-FXI-L [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Number of new performance obligations | PerformanceObligation | 1 |
Collaborative Arrangements an_6
Collaborative Arrangements and Licensing Agreements, GSK (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2010USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)Drug | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Revenue | $ 1,122,599 | $ 599,674 | $ 514,179 | ||
R&D Revenue [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Revenue | $ 770,149 | 344,752 | $ 394,165 | ||
GSK [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Upfront payment received | $ 35,000 | ||||
Number of drugs currently being developed | Drug | 2 | ||||
Maximum amount of payments receivable for license fees and 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 | ||||
Next prospective milestone | 15,000 | ||||
Revenue | $ 25,000 | ||||
Deferred revenue | $ 0 | $ 0 | |||
GSK [Member] | Revenue [Member] | Strategic Partner [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Concentration percentage | 2.00% | 0.00% | 3.00% | ||
GSK [Member] | Minimum [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Cumulative payments received | $ 189,000 | ||||
GSK [Member] | R&D Revenue [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Revenue | $ 25,400 | $ 1,600 | $ 14,800 |
Collaborative Arrangements an_7
Collaborative Arrangements and Licensing Agreements, Janssen Biotech, Inc. (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2017USD ($) | Dec. 31, 2014USD ($)ProgramPerformanceObligation | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Revenue | $ 1,122,599 | $ 599,674 | $ 514,179 | ||
Licensing and Other Royalties [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Revenue | 17,205 | 14,755 | 7,474 | ||
R&D Revenue [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Revenue | 770,149 | 344,752 | $ 394,165 | ||
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 milestones | 285,000 | ||||
Maximum amount of payments receivable for development milestones | 65,000 | ||||
Maximum amount of payments receivable for regulatory milestones | 160,000 | ||||
Maximum amount of payments receivable for commercialization milestones | 60,000 | ||||
Next prospective milestone | 5,000 | ||||
Number of separate performance obligations | PerformanceObligation | 1 | ||||
Transaction price | $ 35,000 | ||||
Deferred revenue | $ 0 | $ 0 | |||
Janssen Biotech, Inc. [Member] | Revenue [Member] | Strategic Partner [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Concentration percentage | 0.00% | 1.00% | 7.00% | ||
Janssen Biotech, Inc. [Member] | Minimum [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Cumulative payments received | $ 75,000 | ||||
Janssen Biotech, Inc. [Member] | IONIS-JBI2-2.5 [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Revenue | $ 5,000 | ||||
Janssen Biotech, Inc. [Member] | R&D Revenue [Member] | |||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||
Revenue | $ 100 | $ 6,600 | $ 36,000 |
Collaborative Arrangements an_8
Collaborative Arrangements and Licensing Agreements, Roche (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Oct. 31, 2018USD ($)PerformanceObligation | Apr. 30, 2013USD ($)PerformanceObligation | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Revenue | $ 1,122,599 | $ 599,674 | $ 514,179 | |||||
R&D Revenue [Member] | ||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Revenue | 770,149 | 344,752 | $ 394,165 | |||||
Roche [Member] | ||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Deferred revenue | $ 72,600 | $ 52,300 | $ 72,600 | |||||
Roche [Member] | Revenue [Member] | Strategic Partner [Member] | ||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Concentration percentage | 5.00% | 1.00% | 11.00% | |||||
Roche [Member] | R&D Revenue [Member] | ||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Revenue | $ 57,000 | $ 8,300 | $ 55,700 | |||||
Huntington's Disease [Member] | ||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Upfront payment received | $ 30,000 | |||||||
Milestone payments received | $ 35,000 | $ 3,000 | ||||||
Maximum amount of payments receivable for license fees and 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 | |||||||
Next prospective milestone | 15,000 | |||||||
Number of separate performance obligations | PerformanceObligation | 1 | |||||||
Transaction price | $ 30,000 | |||||||
Revenue | $ 35,000 | $ 45,000 | ||||||
Huntington's Disease [Member] | Minimum [Member] | ||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Cumulative payments received | 145,000 | |||||||
IONIS-FB-L for Complement-Mediated Diseases [Member] | ||||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||||
Upfront payment received | $ 75,000 | $ 75,000 | ||||||
Maximum amount of payments receivable for license fees and milestones | 684,000 | |||||||
Next prospective milestone | $ 20,000 | |||||||
Number of separate performance obligations | PerformanceObligation | 1 | |||||||
Transaction price | $ 75,000 | |||||||
Royalty percentage received on net sales of drug | 20.00% |
Collaborative Arrangements an_9
Collaborative Arrangements and Licensing Agreements, Novartis (Details) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 28, 2019USD ($)shares | Jul. 31, 2017USD ($) | Mar. 31, 2017USD ($)PerformanceObligationshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Sublicense fee paid in stock | $ 75,000 | |||||
Additional shares of Akcea stock received (in shares) | shares | 2.8 | |||||
Proceeds from sale of common stock to Novartis in a private placement | $ 0 | $ 0 | $ 50,000 | |||
Revenue | 1,122,599 | 599,674 | 514,179 | |||
R&D Revenue [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Revenue | 770,149 | 344,752 | $ 394,165 | |||
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 | $ 0 | $ 28,800 | ||||
Novartis [Member] | Revenue [Member] | Strategic Partner [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Concentration percentage | 17.00% | 8.00% | 8.00% | |||
Novartis [Member] | R&D Services for AKCEA-APO(a)-L [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Transaction price | 64,000 | |||||
Novartis [Member] | Delivery of AKCEA-APO(a)-L [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Transaction price | 1,500 | |||||
Novartis [Member] | R&D Services for AKCEA-APOCIII-L [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Transaction price | 40,100 | |||||
Novartis [Member] | Delivery of AKCEA-APOCIII-L [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Transaction price | 2,800 | |||||
Novartis [Member] | R&D Revenue [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Revenue | $ 187,400 | $ 50,600 | $ 43,400 | |||
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 sublicense fee | 15,000 | |||||
Percentage of license fees, milestone payments and royalties paid as sublicense fee | 50.00% | |||||
Additional amount of common stock required to be purchased | $ 50,000 | |||||
Proceeds from sale of common stock to Novartis in a private placement | $ 50,000 | |||||
Akcea [Member] | Novartis [Member] | License Fees [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Revenue | $ 150,000 | |||||
Akcea [Member] | Novartis [Member] | AKCEA-APO(a)-L [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Maximum amount of payments receivable for milestones | $ 675,000 | |||||
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 | $ 360,000 | |||||
Royalty percentage received on sales of drug | 20.00% |
Collaborative Arrangements a_10
Collaborative Arrangements and Licensing Agreements, Pfizer (Details) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2019USD ($)PerformanceObligation | Feb. 28, 2019USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Additional shares of Akcea stock received (in shares) | shares | 2.8 | |||||
Sublicense fee paid in stock | $ 75,000 | |||||
Revenue | $ 1,122,599 | $ 599,674 | $ 514,179 | |||
R&D Revenue [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Revenue | 770,149 | $ 344,752 | $ 394,165 | |||
Pfizer [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Revenue | $ 246,000 | |||||
Akcea [Member] | Pfizer [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Upfront payment received | $ 250,000 | |||||
Maximum amount of payments receivable for development, regulatory and sales milestones | 1,300,000 | 1,300,000 | ||||
Maximum amount of payments receivable for development milestones | 205,000 | 205,000 | ||||
Maximum amount of payments receivable for regulatory milestones | 250,000 | 250,000 | ||||
Maximum amount of payments receivable for commercialization milestones | 850,000 | $ 850,000 | ||||
Royalty percentage received on net sales of drug | 20.00% | |||||
Next prospective milestone | $ 75,000 | $ 75,000 | ||||
Number of separate performance obligations | PerformanceObligation | 3 | |||||
Transaction price | $ 250,000 | |||||
Additional shares of Akcea stock received (in shares) | shares | 6.9 | |||||
Sublicense fee paid in stock | $ 125,000 | |||||
Revenue | 2,200 | 248,700 | ||||
Deferred revenue | 1,300 | $ 1,300 | ||||
Akcea [Member] | Pfizer [Member] | Revenue [Member] | Strategic Partner [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Concentration percentage | 22.00% | |||||
Akcea [Member] | Pfizer [Member] | AKCEA-ANGPTL3-L [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Transaction price | 245,600 | |||||
Revenue | $ 245,600 | |||||
Akcea [Member] | Pfizer [Member] | R&D Services for AKCEA-ANGPTL3-L [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Transaction price | 2,200 | |||||
Akcea [Member] | Pfizer [Member] | AKCEA-ANGPTL3-L API [Member] | ||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | ||||||
Transaction price | $ 2,200 |
Collaborative Arrangements a_11
Collaborative Arrangements and Licensing Agreements, PTC Therapeutics (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 31, 2018PerformanceObligation | |
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue | $ 1,122,599 | $ 599,674 | $ 514,179 | ||||
Licensing and Other Royalty Revenue [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue | 17,205 | 14,755 | $ 7,474 | ||||
PTC Therapeutics [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Number of separate performance obligations | PerformanceObligation | 2 | ||||||
Deferred revenue | $ 0 | 0 | $ 0 | ||||
Akcea [Member] | PTC Therapeutics [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Maximum payment receivable under license agreement | 26,000 | 26,000 | |||||
Payment received under license agreement | 4,000 | $ 6,000 | $ 12,000 | ||||
Maximum amount of payments receivable per drug for regulatory milestones | 4,000 | $ 4,000 | |||||
Royalty percentage received on net sales of each drug in Latin America from PTC | 20.00% | ||||||
Period before PTC pays royalties on net sales of product after first commercial sale in Brazil | 12 months | ||||||
Minimum revenue recognized in Latin America by PTC before paying royalties | $ 10,000 | ||||||
Akcea [Member] | PTC Therapeutics [Member] | Revenue [Member] | Strategic Partner [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Concentration percentage | 1.00% | 2.00% | |||||
Akcea [Member] | PTC Therapeutics [Member] | Licensing and Other Royalty Revenue [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue | $ 10,200 | $ 12,000 | |||||
Akcea [Member] | PTC Therapeutics [Member] | License Fees [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue | $ 12,000 | ||||||
Akcea [Member] | PTC Therapeutics [Member] | WAYLIVRA [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue | $ 6,000 | ||||||
Akcea [Member] | PTC Therapeutics [Member] | TEGSEDI [Member] | |||||||
Collaborative Arrangement and Licensing Agreement [Abstract] | |||||||
Revenue | $ 4,000 |
Segment Information and Conce_3
Segment Information and Concentration of Business Risk, Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017 | |
Segment Information [Abstract] | ||||||||||||
Number of reportable segments | Segment | 2 | |||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | $ 1,122,599 | $ 599,674 | $ 514,179 | |||||||||
Total operating expenses | $ 233,028 | $ 165,369 | $ 182,640 | $ 175,679 | $ 181,331 | $ 163,967 | $ 168,028 | $ 147,720 | 756,716 | 661,046 | 483,132 | |
Income (loss) from operations | 260,652 | $ 2,523 | $ (18,827) | $ 121,535 | 10,782 | $ (18,572) | $ (50,281) | $ (3,301) | 365,883 | (61,372) | 31,047 | |
Total assets as of current period | $ 3,233,112 | 2,667,784 | 3,233,112 | 2,667,784 | ||||||||
Commercial Revenue [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 352,450 | 254,922 | 120,014 | |||||||||
SPINRAZA Royalties [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 292,992 | 237,930 | 112,540 | |||||||||
Product Sales, Net [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 42,253 | 2,237 | 0 | |||||||||
Licensing and Other Royalty Revenue [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 17,205 | 14,755 | 7,474 | |||||||||
R&D Revenue Under Collaborative Agreements [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | $ 770,149 | 344,752 | 394,165 | |||||||||
Akcea [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Percentage ownership | 76.00% | 76.00% | 100.00% | |||||||||
Operating Segments [Member] | Ionis Core [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | $ 858,646 | 641,944 | 525,185 | |||||||||
Total operating expenses | 523,207 | 380,212 | 373,788 | |||||||||
Income (loss) from operations | 335,439 | 261,732 | 151,397 | |||||||||
Total assets as of current period | $ 3,478,081 | 2,975,491 | 3,478,081 | 2,975,491 | ||||||||
Operating Segments [Member] | Ionis Core [Member] | Commercial Revenue [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 305,608 | 240,685 | 120,014 | |||||||||
Operating Segments [Member] | Ionis Core [Member] | SPINRAZA Royalties [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 292,992 | 237,930 | 112,540 | |||||||||
Operating Segments [Member] | Ionis Core [Member] | Product Sales, Net [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 0 | 0 | ||||||||||
Operating Segments [Member] | Ionis Core [Member] | Licensing and Other Royalty Revenue [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 12,616 | 2,755 | 7,474 | |||||||||
Operating Segments [Member] | Ionis Core [Member] | R&D Revenue Under Collaborative Agreements [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 553,038 | 401,259 | 405,171 | |||||||||
Operating Segments [Member] | Akcea Therapeutics [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 488,543 | 64,867 | 43,401 | |||||||||
Total operating expenses | 450,469 | 295,683 | 163,871 | |||||||||
Income (loss) from operations | 38,074 | (230,816) | (120,470) | |||||||||
Total assets as of current period | 599,250 | 365,261 | 599,250 | 365,261 | ||||||||
Operating Segments [Member] | Akcea Therapeutics [Member] | Commercial Revenue [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 52,425 | 14,237 | 0 | |||||||||
Operating Segments [Member] | Akcea Therapeutics [Member] | SPINRAZA Royalties [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 0 | 0 | 0 | |||||||||
Operating Segments [Member] | Akcea Therapeutics [Member] | Product Sales, Net [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 42,253 | 2,237 | ||||||||||
Operating Segments [Member] | Akcea Therapeutics [Member] | Licensing and Other Royalty Revenue [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 10,172 | 12,000 | 0 | |||||||||
Operating Segments [Member] | Akcea Therapeutics [Member] | R&D Revenue Under Collaborative Agreements [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 436,118 | 50,630 | 43,401 | |||||||||
Elimination of Intercompany Activity [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | (224,590) | (107,137) | (54,407) | |||||||||
Total operating expenses | (216,960) | (14,849) | (54,527) | |||||||||
Income (loss) from operations | (7,630) | (92,288) | 120 | |||||||||
Total assets as of current period | $ (844,219) | $ (672,968) | (844,219) | (672,968) | ||||||||
Elimination of Intercompany Activity [Member] | Commercial Revenue [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | (5,583) | 0 | 0 | |||||||||
Elimination of Intercompany Activity [Member] | SPINRAZA Royalties [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 0 | 0 | 0 | |||||||||
Elimination of Intercompany Activity [Member] | Product Sales, Net [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | 0 | 0 | ||||||||||
Elimination of Intercompany Activity [Member] | Licensing and Other Royalty Revenue [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | (5,583) | 0 | 0 | |||||||||
Elimination of Intercompany Activity [Member] | R&D Revenue Under Collaborative Agreements [Member] | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Revenue | $ (219,007) | $ (107,137) | $ (54,407) |
Segment Information and Conce_4
Segment Information and Concentration of Business Risk, Contracts Receivable from Significant Partners (Details) - Contracts Receivables [Member] - Credit Concentration [Member] - Significant Partners [Member] - Partner | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Partners [Abstract] | ||
Concentration percentage | 75.00% | 99.00% |
Number of significant partners | 1 | 4 |
Employment Benefits (Details)
Employment Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employment Benefits [Abstract] | |||
Employee contribution limit per calendar year for employees under 50 years of age | $ 19,000 | ||
Employee contribution limit per calendar year for employees over 50 years of age | 25,000 | ||
Matching contributions | $ 6,400,000 | $ 5,700,000 | $ 3,000,000 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||||||
Revenue | $ 493,680 | $ 167,892 | $ 163,813 | $ 297,214 | $ 192,113 | $ 145,395 | $ 117,747 | $ 144,419 | |||||||||||
Operating expenses | 233,028 | 165,369 | 182,640 | 175,679 | 181,331 | 163,967 | 168,028 | 147,720 | $ 756,716 | $ 661,046 | $ 483,132 | ||||||||
Income (loss) from operations | 260,652 | 2,523 | (18,827) | 121,535 | 10,782 | (18,572) | (50,281) | (3,301) | 365,883 | (61,372) | 31,047 | ||||||||
Net income (loss) | 203,957 | 18,432 | (10,012) | 90,884 | 302,735 | (20,365) | (56,573) | (10,812) | 303,262 | 214,985 | (10,783) | ||||||||
Net income (loss) attributable to Ionis Pharmaceuticals, Inc. common stockholders | $ 184,415 | $ 26,163 | $ (876) | $ 84,443 | $ 320,078 | $ (4,559) | $ (40,358) | $ (1,420) | $ 294,146 | $ 273,741 | $ 346 | ||||||||
Basic net income per share (in dollars per share) | $ 1.31 | [1],[2] | $ 0.19 | [1],[2] | $ (0.01) | [1],[2] | $ 0.63 | [1],[2] | $ 2.32 | [1],[2] | $ (0.03) | [1],[2] | $ (0.29) | [1],[2] | $ (0.01) | [1],[2] | $ 2.12 | $ 2.09 | $ 0.15 |
Diluted net income (loss) per share (in dollars per share) | $ 1.28 | [2],[3] | $ 0.18 | [2],[3],[4] | $ (0.01) | [2] | $ 0.62 | [2],[3],[4] | $ 2.21 | [2],[3] | $ (0.03) | [2] | $ (0.29) | [2] | $ (0.01) | [2] | $ 2.08 | $ 2.07 | $ 0.15 |
Income (Numerator) [Abstract] | |||||||||||||||||||
Income (loss) available to Ionis common stockholders | $ 183,795 | $ 26,158 | $ (933) | $ 87,543 | $ 319,694 | $ (4,563) | $ (37,932) | $ (1,212) | $ 296,563 | $ 276,868 | $ 18,792 | ||||||||
Income available to Ionis common shareholders, plus assumed conversions | $ 196,485 | $ 26,158 | $ 87,543 | $ 330,439 | $ 296,563 | $ 276,868 | $ 18,792 | ||||||||||||
Shares (Denominator) [Abstract] | |||||||||||||||||||
Shares used in computing basic net income (loss) per share (in shares) | 140,583 | 140,551 | 140,247 | 138,582 | 137,699 | 137,346 | 128,712 | 125,330 | 139,998 | 132,320 | 124,016 | ||||||||
Effect of Diluted Securities [Abstract] | |||||||||||||||||||
Shares issuable related to our ESPP (in shares) | 18 | 20 | 38 | 7 | |||||||||||||||
Shares used in computing diluted net income per share (in shares) | 153,303 | 143,408 | 141,537 | 149,856 | 142,872 | 134,056 | 126,098 | ||||||||||||
0.125 Percent Convertible Senior Notes [Member] | |||||||||||||||||||
Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||||||
Interest rate on convertible senior notes | 0.125% | 0.125% | 0.125% | 0.125% | |||||||||||||||
Income (Numerator) [Abstract] | |||||||||||||||||||
Shares issuable related to our convertible notes | $ 644 | ||||||||||||||||||
Effect of Diluted Securities [Abstract] | |||||||||||||||||||
Shares issuable related to our convertible notes | 860 | ||||||||||||||||||
1 Percent Convertible Senior Notes [Member] | |||||||||||||||||||
Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||||||
Interest rate on convertible senior notes | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | |||||||||||||
Income (Numerator) [Abstract] | |||||||||||||||||||
Shares issuable related to our convertible notes | $ 12,046 | $ 0 | $ 0 | $ 10,745 | |||||||||||||||
Effect of Diluted Securities [Abstract] | |||||||||||||||||||
Shares issuable related to our convertible notes | 9,527 | 0 | 0 | 10,260 | |||||||||||||||
Stock Options [Member] | |||||||||||||||||||
Effect of Diluted Securities [Abstract] | |||||||||||||||||||
Shares issuable related to stock-based compensation (in shares) | 1,467 | 1,993 | 2,252 | 1,254 | 2,090 | 1,216 | 1,619 | ||||||||||||
Restricted Stock Awards [Member] | |||||||||||||||||||
Effect of Diluted Securities [Abstract] | |||||||||||||||||||
Shares issuable related to stock-based compensation (in shares) | 848 | 844 | 665 | 636 | 766 | 514 | 459 | ||||||||||||
Ionis [Member] | |||||||||||||||||||
Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||||||
Net income (loss) attributable to Ionis Pharmaceuticals, Inc. common stockholders | $ 121,552 | $ 49,930 | $ 27,311 | $ 63,697 | $ 372,913 | $ 43,226 | $ 5,882 | $ 18,785 | $ 262,490 | $ 440,806 | $ 110,776 | ||||||||
Akcea [Member] | |||||||||||||||||||
Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||||||
Net income (loss) attributable to Ionis Pharmaceuticals, Inc. common stockholders | $ 62,243 | $ (23,772) | $ (28,244) | $ 23,846 | $ (53,219) | $ (47,789) | $ (43,814) | $ (19,997) | |||||||||||
Basic net income per share (in dollars per share) | $ 0.87 | $ (0.34) | $ (0.40) | $ 0.35 | $ (0.79) | $ (0.73) | $ (0.72) | $ (0.44) | |||||||||||
Weighted average shares owned in Akcea (in shares) | 71,342 | 70,221 | 70,221 | 68,582 | 67,130 | 65,538 | 60,832 | 45,448 | |||||||||||
[1] | As discussed in Note 1, Organization and Significant Accounting Policies, 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. Our basic net income (loss) per share calculation for each of the quarters in 2019 and 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. As a result of this calculation, our total net income (loss) available to Ionis common stockholders for the calculation of net income (loss) per share is different than net income (loss) attributable to Ionis Pharmaceuticals, Inc. common stockholders in the consolidated statements of operations. | ||||||||||||||||||
[2] | We computed net income (loss) per share independently for each of the quarters presented. Therefore, the sum of the quarterly net income (loss) per share will not necessarily equal the total for the year. | ||||||||||||||||||
[3] | We had net income available to Ionis common stockholders for the following periods. 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. | ||||||||||||||||||
[4] | For the three months ended March 31, 2019 and September 30, 2019, the calculation excluded the 1 percent notes because the effect on diluted earnings per share was anti-dilutive. |