Isis Pharmaceuticals Inc. on Wednesday posted a larger loss in the fourth quarter, as it continued developing drug candidates like Kynamro, an experimental treatment for a genetic condition that causes very high cholesterol.
Isis (Nasdaq: ISIS) lost $20 million, or 20 cents per share, compared with $14 million, or 14 cents per share, in the fourth quarter of 2010. Research and development costs climbed 20 percent to $47.2 million. Revenue rose 23 percent, to $32.4 million from $26.4 million. Most of Isis' revenue comes from research and development partnerships.
Analysts expected the company to report a loss of 18 cents per share and $29.5 million in revenue, according to FactSet.
Isis shares rose50 cents, or 5.8 percent, to close at $9.11.
Isis said its revenue grew because it received a $5 million payment from partner GlaxoSmithKline PLC (NYSE: GSK) after GlaxoSmithKline chose a drug candidate as part of a collaboration between the companies. Isis also got $5.8 million from Sanofi, its partner on Kynamro.
Kynamro is designed to treat homozygous familial hypercholesterolemia, a rare genetic condition that causes severely elevated levels of “bad” LDL cholesterol. Sanofi's Genzyme unit asked European Union regulators to approve the drug in July. Isis said Wednesday that the companies will file for U.S. approval of the drug in the first quarter, and they hope to begin selling Kynamro during the second half of the year.
Isis lost $84.8 million, or 85 cents per share, in 2011. It reported a loss of $61.3 million, or 62 cents per share, in 2010. Revenue fell 9 percent, to $99.1 million from $108.5 million.
The company expects more revenue in 2012, including a total of $50 million in payments related to the marketing application and approval of Kynamro. Isis recently received a $29 million payment from new partner Biogen Idec Inc. (Nasdaq: BIIB). Isis and Biogen announced in January that they would develop a treatment for spinal muscular atrophy, a rare genetic disorder. Isis could ultimately get another $270 million from the partnership, as well as royalties on sales if the drug is approved.
Analysts expect the company to report $141.9 million in revenue this year.
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