Investor Relations (IR) Questions: Isis Pharmaceuticals $ISIS
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Answers received: April 2013
1. When is the last time ISIS raised cash through an offering (diluted)? Answer: Isis has not done an equity offering for over 10 years (our last was in 2001). Last year we completed a convertible debt financing and used the proceeds to retire our outstanding convertible debt. This financing was done at a time when terms for convertible debt were quite favorable, so we were able to accomplish this refinancing, extending the maturity of our debt, with only 12.1 million additional shares of potential dilution.
2. How much cash (not cash equivalents) does ISIS have? Answer: At the end of last year Isis had cash and short-term investments of $374 million. We manage our short-term investments so that they provide a return but are available to us as we need cash. Prudently, we keep little of our cash un-invested.
3. What and approximately when is the next known catalyst? Answer: We have a number of data events planned over the next 12 months from Isis and our partners (see attached slide). Already this year we have reported encouraging data from our CRP and SMA programs. Toward the middle of the year we plan to have additional data from our CRP program for rheumatoid arthritis, as well as the first data from our Phase 2 program for ISIS-APOCIIIRx for triglyceride lowering. With such a large pipeline we plan numerous announcements regarding clinical study initiation. For example, already this year we have started a Phase 3 study with ISIS-TTRRx for familial amyloid polyneuropathy, a Phase 1 study for ISIS-APOARx for atherosclerosis and AstraZeneca has started a second Phase 2 study for ISIS-STAT3Rx for cancer. We expect a number of additional studies to start this year as our pipeline assets continue to mature. In addition, we expect continuing news from our numerous existing partnerships. For example, already this year we have announced the launch of KYNAMRO, the start of the Phase 3 study with ISIS-TTRRx and the initiation of a new collaboration with Roche for Huntington’s disease. These partnerships are the foundation of our business strategy – not only do they validate and support our technology and pipeline, they also bring in valuable funding.
4. What is ISIS's quarterly cash burn? Answer: Our quarterly cash burn varies depending on the timing of payments from partners including upfront payments and milestone payments. For example in Q1’13, we received $32.5M in cash from Genzyme and GSK for milestone payments. That being said, we have said we expect to end the year with more than $325M in cash, which translates into an annual burn rate for 2013 of approximately $50 million. This would give an average quarterly burn rate of about $12.5 million.
5. Does ISIS have an existing line of credit and if so how much can they draw against it? Answer: We don’t have a revolving line of credit, but we do have an equipment lease line. We have $6M available on the line.
If I can be of further assistance, please let me know.
Best regards,
Wade
______________________________________________________
D. Wade Walke, Ph.D.
Executive Director
Corporate Communications and Investor Relations
There is extensive additional coverage of Isis here at BiotechDueDiligence. Start at the ISIS stock research page and also see all blog posts related to the company.
1. When is the last time ISIS raised cash through an offering (diluted)? Answer: Isis has not done an equity offering for over 10 years (our last was in 2001). Last year we completed a convertible debt financing and used the proceeds to retire our outstanding convertible debt. This financing was done at a time when terms for convertible debt were quite favorable, so we were able to accomplish this refinancing, extending the maturity of our debt, with only 12.1 million additional shares of potential dilution.
2. How much cash (not cash equivalents) does ISIS have? Answer: At the end of last year Isis had cash and short-term investments of $374 million. We manage our short-term investments so that they provide a return but are available to us as we need cash. Prudently, we keep little of our cash un-invested.
3. What and approximately when is the next known catalyst? Answer: We have a number of data events planned over the next 12 months from Isis and our partners (see attached slide). Already this year we have reported encouraging data from our CRP and SMA programs. Toward the middle of the year we plan to have additional data from our CRP program for rheumatoid arthritis, as well as the first data from our Phase 2 program for ISIS-APOCIIIRx for triglyceride lowering. With such a large pipeline we plan numerous announcements regarding clinical study initiation. For example, already this year we have started a Phase 3 study with ISIS-TTRRx for familial amyloid polyneuropathy, a Phase 1 study for ISIS-APOARx for atherosclerosis and AstraZeneca has started a second Phase 2 study for ISIS-STAT3Rx for cancer. We expect a number of additional studies to start this year as our pipeline assets continue to mature. In addition, we expect continuing news from our numerous existing partnerships. For example, already this year we have announced the launch of KYNAMRO, the start of the Phase 3 study with ISIS-TTRRx and the initiation of a new collaboration with Roche for Huntington’s disease. These partnerships are the foundation of our business strategy – not only do they validate and support our technology and pipeline, they also bring in valuable funding.
4. What is ISIS's quarterly cash burn? Answer: Our quarterly cash burn varies depending on the timing of payments from partners including upfront payments and milestone payments. For example in Q1’13, we received $32.5M in cash from Genzyme and GSK for milestone payments. That being said, we have said we expect to end the year with more than $325M in cash, which translates into an annual burn rate for 2013 of approximately $50 million. This would give an average quarterly burn rate of about $12.5 million.
5. Does ISIS have an existing line of credit and if so how much can they draw against it? Answer: We don’t have a revolving line of credit, but we do have an equipment lease line. We have $6M available on the line.
If I can be of further assistance, please let me know.
Best regards,
Wade
______________________________________________________
D. Wade Walke, Ph.D.
Executive Director
Corporate Communications and Investor Relations
There is extensive additional coverage of Isis here at BiotechDueDiligence. Start at the ISIS stock research page and also see all blog posts related to the company.