reimbursed CHDI for a portion of its support of our Huntington’s disease program out of the $30 million upfront
payment we received from our alliance with Roche to develop treatments for Huntington’s disease. All amounts
exclude non-cash compensation expense related to equity awards.
Antisense Drug Development
The following table sets forth expenses for our major antisense drug development projects (in thousands):
Year Ended
December 31,
2013
2012
KYNAMRO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,653 $ 9,451
ISIS-TTR
Rx
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,174 5,034
ISIS-SMN
Rx
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6,938 3,903
ISIS-APOCIII
Rx
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,730 3,104
Other antisense development products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,129 27,959
Development overhead costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,171 21,110
Total antisense drug development, excluding non-cash compensation
expense related to equity awards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,795 70,561
Non-cash compensation expense related to equity awards. . . . . . . . . . . . . . . .
3,202 2,482
Total antisense drug development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $80,997 $73,043
Antisense drug development expenditures were $77.8 million for the year ended December 31, 2013
compared to $70.6 million for 2012. The higher expenses in 2013 were primarily due to an increase in
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
. The increase associated with these activities was
offset, in part, by lower development expenses related to KYNAMRO and ISIS-TTR
Rx
. We initiated a Phase 2/3
clinical study of ISIS-TTR
Rx
in February 2013, for which we incurred a significant portion of the start-up
expenses in 2012. All amounts exclude non-cash compensation expense related to equity awards. In 2014, we
began presenting salaries and benefits in the development overhead costs line in our antisense drug development
table. We have adjusted 2013 and 2012 to conform to the current year presentation.
Manufacturing and Operations
Our manufacturing and operations expenses were as follows (in thousands):
Year Ended
December 31,
2013
2012
Manufacturing and operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,509 $19,232
Non-cash compensation expense related to equity awards. . . . . . . . . . . . . . . .
1,295 999
Total manufacturing and operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,804 $20,231
Manufacturing and operations expenses for the year ended December 31, 2013 were $20.5 million, and
increased slightly compared to $19.2 million for 2012, primarily because we manufactured more drug product
due to our advancing and expanding pipeline. All amounts exclude non-cash compensation expense related to
equity awards.
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