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Segment Information and Concentration of Business Risk

12 Months Ended

Dec. 31, 2019

Segment Information and Concentration of Business Risk [Abstract]

Segment Information and Concentration of Business Risk

7. Segment Information and Concentration of Business Risk

We have two reportable segments Ionis Core and Akcea Therapeutics. At December 31, 2019, we owned approximately 76 percent of Akcea. Segment income (loss) from operations includes revenue less operating expenses attributable to each segment.

In our Ionis Core segment we are exploiting our antisense technology to generate a broad pipeline of first-in-class and/or best-in-class medicines for us and our partners. Our Ionis Core segment generates revenue from a multifaceted partnering strategy.

Akcea is a biopharmaceutical company focused on developing and commercializing medicines to treat patients with serious and rare diseases. Akcea generates revenue from TEGSEDI and WAYLIVRA product sales and from its collaborations.

The following tables show our segment revenue and income (loss) from operations for 2019, 2018 and 2017 (in thousands), respectively.

2019	Ionis Core		Akcea Therapeutics		Elimination of Intercompany Activity			Total
Revenue:
Commercial revenue:
SPINRAZA royalties	$	292,992	$	—	$	—		$	292,992
Product sales, net		—		42,253		—			42,253
Licensing and other royalty revenue		12,616		10,172		(5,583	)		17,205
Total commercial revenue		305,608		52,425		(5,583	)		352,450
R&D revenue under collaborative agreements		553,038		436,118		(219,007	)		770,149
Total segment revenue	$	858,646	$	488,543	$	(224,590	)	$	1,122,599
Total operating expenses	$	523,207	$	450,469	$	(216,960	)	$	756,716
Income (loss) from operations	$	335,439	$	38,074	$	(7,630	)	$	365,883

2018	Ionis Core		Akcea Therapeutics			Elimination of Intercompany Activity			Total
Revenue:
Commercial revenue:
SPINRAZA royalties	$	237,930	$	—		$	—		$	237,930
TEGSEDI product sales, net		—		2,237			—			2,237
Licensing and other royalty revenue		2,755		12,000			—			14,755
Total commercial revenue		240,685		14,237			—			254,922
R&D revenue under collaborative agreements		401,259		50,630			(107,137	)		344,752
Total segment revenue	$	641,944	$	64,867		$	(107,137	)	$	599,674
Total operating expenses	$	380,212	$	295,683		$	(14,849	)	$	661,046
Income (loss) from operations	$	261,732	$	(230,816	)	$	(92,288	)	$	(61,372	)

2017	Ionis Core		Akcea Therapeutics			Elimination of Intercompany Activity			Total
Revenue:
Commercial revenue:
SPINRAZA royalties	$	112,540	$	—		$	—		$	112,540
Licensing and other royalty revenue		7,474		—			—			7,474
Total commercial revenue		120,014		—			—			120,014
R&D revenue under collaborative agreements		405,171		43,401			(54,407	)		394,165
Total segment revenue	$	525,185	$	43,401		$	(54,407	)	$	514,179
Total operating expenses	$	373,788	$	163,871		$	(54,527	)	$	483,132
Income (loss) from operations	$	151,397	$	(120,470	)	$	120		$	31,047

The following table shows our total assets by segment at December 31, 2019 and 2018 (in thousands), respectively.

Total Assets	Ionis Core		Akcea Therapeutics		Elimination of Intercompany Activity			Total
December 31, 2019	$	3,478,081	$	599,250	$	(844,219	)	$	3,233,112
December 31, 2018	$	2,975,491	$	365,261	$	(672,968	)	$	2,667,784

Contracts receivables at December 31, 2019 and December 31, 2018 were comprised of approximately 75 percent and 99 percent for each year from one and four significant partners, respectively.