Isis Pharma Q2 Loss Widens, But Results Top Estimates

(RTTNews) - Drugmaker Isis Pharmaceuticals, Inc. (ISIS) reported Monday a net loss for the second quarter that widened from last year, despite double-digit revenue growth, hurt by higher operating expenses. Loss per share for the quarter came in narrower than analysts' expectations, and quarterly revenues also topped their estimates.

The company noted that the $40 million in milestone payments from partners also drove improved quarterly financial performance.

"We ended the second quarter with pro forma net operating income of $1.1 million, including more than $40 million in milestone payments reflecting the significant progress our partnered programs are achieving. So far this year, because of our successful execution of our business strategy, we have achieved nearly $75 million in payments from our partners," CFO Elizabeth Hougen said in a statement.

The Carlsbad, California-based company reported a net loss of $12.08 million or $0.10 per share for the second quarter, wider than $10.13 million or $0.09 per share in the prior-year quarter.

Pro forma net loss for the quarter was $4.37 million, compared to $7.49 million last year.

On average, nine analysts polled by Thomson Reuters expected the company to report a loss of $0.13 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew to $57.08 million from $38.09 million in the same quarter last year, and topped ten Wall Street analysts' consensus estimate of $45.30 million.

Operating expenses for the quarter increased to $63.73 million from $46.02 million last year, reflecting higher development costs associated with Isis' maturing pipeline of drugs.

"We remain on track to meet our financial guidance of a pro forma NOL in the low $50 million range and year end cash in excess of $575 million," Hougen added.

In Monday's regular trading session, ISIS is currently trading at $30.10, down $0.30 or 0.99% on a volume of 0.61 million shares.