•
$17 million fromBiogen Idec because we advanced the Phase 2 study of ISIS-SMN
Rx
in infants and
for selecting and advancing ISIS-DMPK-2.5
Rx
in development; and
•
$3.5 million when Xenon licensed XEN701.
Our revenue in 2013 also included $64 million primarily from the amortization of upfront fees and
manufacturing services performed for our partners.
Research and Development Revenue Under Collaborative Agreements
Research and development revenue under collaborative agreements for the year ended December 31, 2013
was $144.2 million compared to $96.4 million for 2012. The increase in 2013 was primarily due to an increase
in revenue frommilestone payments we received and amortization of upfront fees.
Licensing and Royalty Revenue
Our revenue from licensing activities and royalties for the year ended December 31, 2013 was $3.1 million
and decreased compared to $5.6 million for 2012. The decrease was primarily due to $0.8 million in sublicensing
revenue that we earned fromAlnylam in 2013 compared to $2.7 million we earned fromAlnylam in 2012.
Operating Expenses
Operating expenses for the year ended December 31, 2013 were $199.0 million compared to $171.0 million
for 2012. The increase in operating expenses was primarily due to higher costs associated with the advancement
and expansion of our pipeline.
Research, Development and Patent Expenses
Our research, development and patent expenses consist of costs for antisense drug discovery, antisense drug
development, manufacturing and operations and R&D support costs.
The following table sets forth information on research, development and patent expenses (in thousands):
Year Ended
December 31,
2013
2012
Research, development and patent expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . $174,360 $151,212
Non-cash compensation expense related to equity awards. . . . . . . . . . . . . . . .
9,673 7,246
Total research, development and patent expenses. . . . . . . . . . . . . . . . . . . . . $184,033 $158,458
For the year ended December 31, 2013, we incurred total research, development and patent expenses of
$174.4 million compared to $151.2 million for 2012. Research, development and patent expenses in 2013 were
higher primarily due to higher development costs associated with the progression of numerous drugs in our
pipeline into later stage clinical trials, including advancing ISIS-APOCIII
Rx
and ISIS-SMN
Rx
. We also initiated
numerous clinical studies and added new drugs to our pipeline. All amounts exclude non-cash compensation
expense related to equity awards.
Antisense Drug Discovery
Our antisense drug discovery expenses were as follows (in thousands):
Year Ended
December 31,
2013
2012
Antisense drug discovery expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $42,402 $34,035
Non-cash compensation expense related to equity awards. . . . . . . . . . . . . . . .
2,878 2,108
Total antisense drug discovery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $45,280 $36,143
Antisense drug discovery costs were $42.4 million for the year ended December 31, 2013 compared to
$34.0 million for 2012. Expenses increased in 2013 compared to 2012 primarily due to an increase in activities
to support our Biogen Idec andAstraZeneca research collaborations, a $1.5 million payment we made to CHDI,
and additional supplies used in our research activities. Under the terms of our agreement with CHDI, we
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