COMPARISONOF 5YEARCUMULATIVETOTALRETURN
Among Isis Pharmaceuticals, Inc., the NASDAQComposite Index,
and the NASDAQBiotechnology Index
Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14
Isis Pharmaceuticals, Inc. . . . . . . . . . . . . . . . . . . . . . . $100.00 $ 91.09 $ 64.90 $ 93.97 $358.60 $555.72
NASDAQComposite Index . . . . . . . . . . . . . . . . . . . . $100.00 $117.61 $118.70 $139.00 $196.83 $223.74
NASDAQBiotechnology Index . . . . . . . . . . . . . . . . . $100.00 $106.73 $122.40 $166.72 $286.55 $379.71
(1) This section is not ‘‘soliciting material,’’ is not deemed ‘‘filed’’with the SEC, is not subject to the liabilities of Section 18 of the
ExchangeAct and is not to be incorporated by reference in any of our filings under the Securities Act or the ExchangeAct, whether
made before or after the date hereof and irrespective of any general incorporation language in any such filing.
Item6.
Selected Financial Data
Set forth below are our selected consolidated financial data (in thousands, except per share amounts):
Years Ended December 31,
2014
2013
2012
2011
2010
Consolidated Statement of Operations Data:
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$214,161 $147,285 $102,049 $ 99,086 $108,473
Research, development and patent expenses . . . . . . .
$241,751 $184,033 $158,458 $157,397 $145,160
Net loss attributable to Isis Pharmaceuticals, Inc.
common stockholders . . . . . . . . . . . . . . . . . . . . . . .
$(38,984) $(60,644) $(65,478) $(84,801) $(61,251)
Basic and diluted net loss per share attributable to
Isis Pharmaceuticals, Inc. common stockholders . .
$ (0.33) $ (0.55) $ (0.65) $ (0.85) $ (0.62)
Shares used in computing basic and diluted net loss
per share. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
117,691 110,502 100,576 99,656 99,143
As of December 31,
2014
2013
2012
2011
2010
Consolidated Balance Sheet:
Cash, cash equivalents and short-term investments . . $ 728,832 $ 656,761 $ 374,446 $ 343,664 $ 472,353
Working capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 721,265 $ 637,698 $ 349,116 $ 284,027 $ 377,247
Investment in Regulus Therapeutics Inc.(1) . . . . . . . . $ 81,881 $ 52,096 $ 33,622 $ 4,424 $ 870
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 955,809 $ 847,156 $ 545,686 $ 484,894 $ 550,477
Long-term debt and other obligations, less current
portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 582,697 $ 370,954 $ 288,598 $ 232,924 $ 199,175
Accumulated deficit. . . . . . . . . . . . . . . . . . . . . . . . . . . $(1,006,594) $(967,610) $(906,966) $(841,488) $(756,687)
Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . $ 257,780 $ 378,390 $ 182,766 $ 171,434 $ 244,542
(1) In October 2012, Regulus completed an IPO and we changed to accounting for our investment in Regulus at fair value from the equity
method because our ownership in Regulus dropped below 20 percent and we no longer had significant influence over Regulus’
operating and financial policies. For additional information, see Note 2,
Investment in Regulus Therapeutics Inc.
in the Notes to the
Consolidated Financial Statements.
Item7.
Management’s Discussion andAnalysis of Financial Condition and Results of Operations
Overview
We are the leading company in RNA-targeted drug discovery and development, exploiting a proven novel
drug discovery platformwe created to generate a broad pipeline of first-in-class or best-in-class antisense drugs.
The efficiency and broad applicability of our drug discovery platform allows us to discover and develop
antisense drugs to treat a wide range of diseases with an emphasis on cardiovascular, metabolic, severe and rare
diseases, including neurological disorders, and cancer. The efficiency of our drug discovery technology allows us
to employ a unique business strategy designed to maximize the value of our drugs and technology while
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