BIIB - Ionis Pharmaceuticals 2023 Earnings Review: Short-Term Pain Long-Term Gain

2024-02-23 17:58:23 ET

Summary

• Ionis Pharmaceuticals, Inc. reported Q4 2023 earnings this week - revenues increased 34% year-on-year to $788m, comfortably outperforming management's guidance.
• The stock price of Ionis has dipped in 2024 after a lengthy bull run - current market cap valuation of $6.4bn is ~$5bn shy of my own valuation.
• The performance of Ionis' commercially approved drugs was underwhelming, but the pipeline is exceptionally strong.
• 2024 guidance is for a drop in revenues to ~$575m, and an operating loss of <$475m. Investors need not be put off by losses.
• Ionis has several Big Pharma partners, pledging the company billions of dollars in milestone payments, and royalties on sales of partnered drugs with compelling revenue potential. I make this company a Strong Buy opportunity.

Investment Overview

Ionis Pharmaceuticals, Inc. ( IONS ), the Carlsbad, California-based, commercial stage pharmaceutical company, announced its Q4 and full-year 2023 earnings on Wednesday after the market close.

Ionis stock presently trades at around a value of $45.5 per share, and the market appears to have been largely unmoved by this latest earnings report, although, this month, a bull run that lasted throughout 2023, carrying the share price from ~$35 in March, to ~$54 at the end of December - a gain of >50%, ended abruptly, with shares falling >15% in value....

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