Ionis Pharmaceuticals, Inc.
IONS · NASDAQ-GS
Next quarter
Reports Nov 4, 2026.
Consensus is -$1.22 EPS for Sep 2026 across 9 estimates, ranging -$1.37 to -$0.98.
IONS Jun 2026
- 35.78%
- -1.41%
- -$1.09
- -$0.70
- —
- $267.95M
Reported results
- $267.95M
- 98.98%
- -$102.29M
- -38.18%
- -$114.65M
- -$0.69
Highlights
- EPS beat: Diluted EPS was -$0.69 versus consensus of -$1.09, a 35.78% positive surprise, although net loss was $114.6 million.
- Revenue mix: Revenue was $267.9 million, up 9% from $246.1 million in Q1 but down 41% from $452.0 million a year ago, which included a $280 million sapablursen upfront payment.
- Underlying growth: Excluding last year’s sapablursen upfront payment, second-quarter revenue increased 56% year over year; commercial revenue rose 15% to $118.6 million.
- Commercial launches: DAWNZERA sales reached $26.5 million, up 63% sequentially, while TRYNGOLZA generated $4.6 million after its June sHTG approval; Ionis maintained 2026 product-sales targets of $110-120 million for DAWNZERA and $100-110 million for TRYNGOLZA.
- Partner revenue: R&D revenue was $149.3 million, including $45 million from Biogen’s salanersen Phase 3 initiation, $15 million for a Biogen ALS license, $20 million from Ono’s sapablursen Phase 3 initiation and $21 million recognized from the Recordati zilganersen license.
- Pipeline setback: The Phase 3 CARDIO-TTRansform trial of eplontersen missed its primary ATTR-CM composite endpoint, though the pre-specified monotherapy population showed nominal significance and safety remained favorable.
- Investment and spending: GAAP operating expenses increased 19% to $370.2 million, or $324.6 million excluding equity compensation, driven mainly by commercial investments and zilganersen launch preparation.
- Liquidity and outlook: Cash, cash equivalents and short-term investments were $2.1 billion at quarter-end after repaying $432.5 million of convertible notes; management remains on track for 2026 guidance and 2028 cash-flow breakeven.
Analysis
Ionis delivered a better-than-expected second quarter on earnings but remained loss-making as it invested ahead of a broader commercial transition. Diluted EPS of -$0.69 compared with consensus of -$1.09, while net loss was $114.6 million versus net income of $123.6 million a year ago and a $92.5 million loss in Q1. Revenue was $267.9 million, 9% above Q1 but 41% below the unusually strong year-ago quarter, which included a $280 million sapablursen upfront payment. Excluding that payment, Ionis said revenue rose 56% year over year.
The print was defined by growing commercial revenue, heavy launch spending and a meaningful pipeline disappointment. Commercial revenue increased 15% to $118.6 million, led by DAWNZERA product sales of $26.5 million and early TRYNGOLZA sales of $4.6 million following its June sHTG approval. Operating expenses rose to $370.2 million from $312.2 million, with SG&A up 66% to $150.4 million as Ionis built its commercial infrastructure and prepared for zilganersen. The eplontersen ATTR-CM study missed its primary endpoint, but Ionis completed Angelman enrollment and highlighted second-half catalysts including potential zilganersen and bepirovirsen approvals and pelacarsen outcomes. Cash ended at $2.1 billion after the $432.5 million debt repayment.
Commercial launch momentum
Ionis is increasingly shifting toward revenue from its own medicines, although launch products remain early in their ramps. Commercial revenue reached $118.6 million, up from $102.8 million a year earlier and $107.8 million in Q1, while total product sales rose to $31.1 million from $19.3 million a year ago.
- DAWNZERA: U.S. net product sales were $26.5 million, up 63% from Q1, taking first-half sales to $42.4 million. Ionis maintained its full-year target of $110-120 million, with launches outside the U.S. continuing.
- TRYNGOLZA: Sales were $4.6 million in the quarter and $31.7 million in the first half. Demand in FCS remained strong, but the April 1 price reduction affected revenue; the company expects 2026 product sales of $100-110 million.
- Royalties: Royalty revenue increased 9% to $76.0 million. SPINRAZA generated $402 million of global sales and $53.5 million of Ionis royalty revenue, while WAINUA generated $70 million of global sales and $16.4 million of royalties.
Partner milestone revenue
Partnership activity supplied a large portion of the quarter’s revenue and offset the absence of the prior-year sapablursen upfront payment. R&D revenue was $149.3 million versus $349.3 million a year ago, but Ionis recognized approximately $100 million of license and milestone revenue from multiple partnerships in the quarter.
- Biogen: Ionis recognized a $45 million milestone when salanersen entered Phase 3 for SMA and a $15 million license fee for an ALS candidate. Biogen-related revenue totaled $133.9 million, or 50% of quarterly revenue.
- Ono: A $20 million milestone was recognized when Ono initiated a pivotal sapablursen trial for polycythemia vera.
- Recordati: Ionis recognized $21 million of the $30 million zilganersen upfront payment for the ex-U.S. license; the remaining $9 million will be recognized as R&D services are delivered.
- GSK: The amended bepirovirsen agreement provides eligibility for more than $510 million in additional milestones and tiered royalties of 10% to 12% outside China, Hong Kong and Macau.
Eplontersen setback
The most important clinical negative was the Phase 3 CARDIO-TTRansform result for eplontersen in ATTR-CM. The study missed its primary composite endpoint of cardiovascular mortality and recurrent cardiovascular events through Week 140 in the overall population. A pre-specified monotherapy population showed nominal significance, and the safety and tolerability profile was favorable; full results are scheduled for presentation at the August ESC Congress.
- Financial implication: WAINUA ATTRv-PN royalties continued to grow, reaching $16.4 million in the quarter, but the ATTR-CM failure reduces the near-term expansion opportunity for the partnered program.
- Development spending: Eplontersen development expense declined to $14.6 million from $24.3 million a year ago as the late-stage study neared completion.
Pipeline and catalysts
Ionis completed enrollment in the Phase 3 REVEAL study of obudanersen in Angelman syndrome, with data expected in the second half of 2027. The company is preparing for several regulatory and clinical events in the second half of 2026.
- Zilganersen: The Alexander disease NDA is under FDA Priority Review with a September 22, 2026 PDUFA date; Recordati will commercialize the medicine outside the U.S.
- Bepirovirsen: The chronic hepatitis B application has FDA Priority Review and an October 26, 2026 PDUFA date, with global launch preparations underway.
- Pelacarsen: Novartis is expected to report results from the Phase 3 Lp(a) HORIZON cardiovascular outcomes trial.
- Additional programs: Salanersen and sapablursen entered Phase 3, while ION775 began a Phase 2 study in sHTG.
Costs and liquidity
Ionis continued to spend ahead of independent launches while maintaining its full-year outlook. GAAP operating expenses rose 19% to $370.2 million, including $45.6 million of equity compensation; expenses excluding equity compensation increased to $324.6 million from $282.5 million.
- Operating result: GAAP operating loss was $102.3 million versus operating income of $139.8 million a year ago and a $117.4 million loss in Q1. Non-GAAP operating loss was $57 million.
- Commercial investment: SG&A rose to $150.4 million from $90.6 million, reflecting TRYNGOLZA and DAWNZERA commercialization and zilganersen launch preparation. Management expects full-year expenses to grow in the low teens year over year.
- Balance sheet: Cash, cash equivalents and short-term investments totaled $2.1 billion at June 30, down from $2.7 billion at year-end, primarily because Ionis repaid its 0% convertible notes due 2026 for $432.5 million.
- Cash outlook: Management said the company remains on track for 2026 financial guidance and its goal of cash-flow breakeven in 2028.
