IONS - Ionis: Tough Run For Share Price Belies Multiple Reasons For Optimism

2024-05-28 16:39:10 ET

Summary

• Ionis Pharmaceuticals' Q1 2024 earnings showed a loss of $143m, a larger loss than the $87m in the previous year.
• The company has a healthy cash balance of $2.2bn and expects revenues of +$575m in 2024, albeit with further heavy losses.
• Ionis has several upcoming pipeline opportunities, including the potential approval of pelacarsen and label expansions for Wainua and Olezarsen.
• The antisense specialist with its LICA delivery technology remains a leading player in multiple liver and CNS disease categories, yet its share price has been slipping.
• I have formerly suggested Ionis is facing short term pain for long term gain, and I continue to believe it is due a significant valuation upgrade.

Investment Overview

In my last note on Ionis Pharmaceuticals, Inc. ( IONS ) in late February I covered the antisense/RNA medicine company's Q4 and full-year 2023 performance, its partnerships, pipeline, and valuation. Ultimately, I made the company a "strong buy" opportunity, albeit warning that investors may have to undergo some "short-term pain, for long-term gain".

Unfortunately, the "short-term pain" has been more in evidence than I had hoped, with Ionis' share price slipping from ~$45 at the end of February, to $37.30 at the time of writing, a loss of ~18%....

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