IONS - Embedded Expectations Analysis - 2019 10 03
Ionis Pharmaceuticals, Inc. (IONS:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 25.4x Uniform P/E. At these levels, the market has expectations for profitability to remain near recent highs, but management may be concerned about their ongoing drug trials, the strength of their pipeline, and the sustainability of their operating income growth.Specifically, management may be concerned about the success of their WAYLIVRA trial and about the timing of their IONIS-FXIR study. Furthermore, they may be exaggerating the strength and depth of their pipeline, and may be concerned about their development partnership with Bayer. Additionally, they may be concerned about the breadth of indications for prekallikrein, and may be exaggerating their excitement for their APOCIII drug. Finally, they may be concerned about the sustainability of SPINRAZA's market leadership, and may lack confidence in their ability to sustain recent operating income growth.
Ionis Pharmaceuticals is engaged in discovering and developing RNA-targeted therapeutics. The company has two commercial medicines, SPINRAZA and TEGSEDI. SPINRAZA (nusinersen) injection for intrathecal use is a survival motor neuron-2, directed antisense oligonucleotide indicated for the treatment of spinal muscular atrophy in pediatric and adult patients. TEGSEDI (inotersen) injection is a Generation 2+ antisense medicine and an approved subcutaneous RNA-targeting medicine designed to treat people with polyneuropathy caused by hereditary transthyretin amyloidosis.
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