IONS - Embedded Expectations Analysis - 2021 10 25
Ionis Pharmaceuticals, Inc. (IONS:USA) currently trades at a premium relative to UAFRS-based (Uniform) assets, with a 2.0x Uniform P/B. At these levels, the market has expectations for profitability to remain stable, but management may have concerns about their commercial capabilities, phase III pipeline, and the potential of tofersen.Specifically, management may lack confidence in their ability to meet their goal of having 12 marketed products by 2026, build out their commercial and acquisitive capabilities, and invest in strategic priorities. Furthermore, they may have concerns about their phase III pipeline, including the results of the VALOR study, the progress of their FUS-ALS study, and the safety and tolerability data of Eplontersen as the firm pursues FDA authorization. They may also be overstating the potential of tofersen to become the leading platform for the treatment of neurodegenerative diseases.
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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