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Collaborative Arrangements and Licensing Agreements | 9 Months Ended
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Sep. 30, 2020
Collaborative Arrangements and Licensing Agreements [Abstract] |
Collaborative Arrangements and Licensing Agreements | 6. Collaborative Arrangements and Licensing Agreements Below, we have included our collaborations with substantive changes during the first nine months of 2020 from those included in Note 6 of our audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019. Strategic Partnership Biogen We have several strategic collaborations with Biogen focused on using antisense technology to advance the treatment of neurological disorders. These collaborations combine our expertise in creating antisense medicines with Biogen’s expertise in developing therapies for neurological disorders. We developed and licensed to Biogen SPINRAZA, our approved medicine to treat people with spinal muscular atrophy, or SMA. We and Biogen are currently developing eight medicines to treat neurodegenerative diseases under these collaborations, including medicines in development to treat people with ALS, Alzheimer’s disease and Parkinson’s disease. In addition to these medicines, our collaborations with Biogen include a substantial research pipeline that address a broad range of neurological diseases. From inception through September 2020, we have received more than $2.7 billion from our Biogen collaborations. During the three and nine months ended September 30, 2020 and 2019, we earned the following revenue from our relationship with Biogen (in millions, except percentage amounts):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
SPINRAZA royalties (commercial revenue) |  | $ | 74.2 |  |  | $ | 81.7 |  |  | $ | 211.9 |  |  | $ | 211.9 |
R&D revenue |  |  | 51.2 |  |  |  | 25.5 |  |  |  | 98.6 |  |  |  | 81.9 |
Total revenue from our relationship with Biogen |  | $ | 125.4 |  |  | $ | 107.2 |  |  | $ | 310.5 |  |  | $ | 293.8 |
Percentage of total revenue |  |  | 78 | % |  |  | 64 | % |  |  | 71 | % |  |  | 47 | %
Our condensed consolidated balance sheet at September 30, 2020 and December 31, 2019 included deferred revenue of $475.5 million and $525.8 million, respectively, related to our relationship with Biogen. During the first nine months of 2020, we did not have any changes to our performance obligations, transaction price or the timing in which we expect to recognize revenue under our Biogen collaborations, except as noted below. 2012 Neurology In the first and third quarters of 2020, we achieved a $7.5 million milestone payment and a $12 million milestone payment, respectively, when we advanced IONIS-MAPTRx in development. These milestone payments did not create new performance obligations because each milestone payment is part of our performance obligation to conduct development of IONIS-MAPTRx. Therefore, we included each milestone payment in our transaction price for our IONIS-MAPTRx development performance obligation, in the period in which we achieved the milestone payment. We are recognizing revenue for our IONIS-MAPTRx development performance obligation based on the percentage of completion. From inception through September 30, 2020, we have included $57 million in the transaction price for our IONIS-MAPTRx development performance obligation. We currently estimate we will satisfy our performance obligation in 2022. We will achieve the next payment of up to $25 million if a medicine under this collaboration advances. 2013 Strategic Neurology In the third quarter of 2020, we achieved several milestone payments from Biogen under our 2013 Strategic Neurology collaboration.
| ● | We earned $18 million in milestone payments when Biogen initiated a Phase 1/2 trial for ION464, a medicine in development targeting alpha-synuclein to treat patients with multiple system atrophy; and
| ● | We earned a $10 million milestone payment when Biogen initiated a Phase 1/2 trial for ION541, a medicine in development targeting ataxin 2 to treat patients with amyotrophic lateral sclerosis, or ALS.
We recognized these payments in full in the third quarter of 2020 because we did not have any performance obligations for the respective payments. We will achieve the next payment of up to $10 million if Biogen advances a medicine under this collaboration. Research, Development and Commercialization Partners AstraZeneca We have two collaborations with AstraZeneca, one focused on the treatment of cardiovascular, renal and metabolic diseases and a second focused on the treatment of oncology diseases. We and AstraZeneca are currently developing several medicines under these collaborations, including medicines in development to treat people with cardiovascular disease, a genetically associated form of kidney disease, nonalcoholic steatohepatitis, or NASH and cancer. From inception through September 30, 2020, we have received more than $330 million from our AstraZeneca collaborations. During the three and nine months ended September 30, 2020 and 2019, we earned the following revenue from our relationship with AstraZeneca (in millions, except percentage amounts):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
R&D revenue |  | $ | 3.8 |  |  | $ | 6.6 |  |  | $ | 34.3 |  |  | $ | 14.3 |
Percentage of total revenue |  |  | 2 | % |  |  | 4 | % |  |  | 8 | % |  |  | 2 | %
Our condensed consolidated balance sheet at September 30, 2020 and December 31, 2019 included deferred revenue of $13.8 million and $25.0 million, respectively, related to our relationship with AstraZeneca. During the first nine months of 2020, we did not have any changes to our performance obligations, transaction price or the timing in which we expect to recognize revenue under our AstraZeneca collaborations, except as noted below. Cardiovascular, Renal and Metabolic Diseases Collaboration In the first quarter of 2020, we achieved a $10 million milestone payment from AstraZeneca when AstraZeneca advanced ION532, a medicine in development targeting APOL1 for the treatment of kidney disease. We concluded that this milestone payment was not related to our R&D services performance obligation. Therefore, we recognized the $10 million milestone payment in full in the first quarter of 2020 because we did not have any performance obligations related to this payment. We will achieve the next payment of up to $30 million if AstraZeneca advances a medicine under this collaboration. Oncology Collaboration In the second quarter of 2020, we earned a $13 million license fee when AstraZeneca licensed ION736, a medicine in development targeting FOXP3 for the treatment of cancer. We determined that the license was distinct from our other performance obligations. We recognized the license fee for ION736 as revenue in the second quarter of 2020 because AstraZeneca had full use of the license without any continuing involvement from us. Additionally, we did not have any further performance obligations related to the license after we delivered it to AstraZeneca in the second quarter of 2020. We will achieve the next payment of $12 million when AstraZeneca advances ION736 in development. Janssen Biotech, Inc. We have a collaboration with Janssen Biotech, Inc. to discover and develop antisense drugs that can be locally administered, including oral delivery, to treat immune-mediated diseases of the gastrointestinal tract, or GI. Janssen is currently advancing ION253, for the treatment of immune-mediated GI disease, under this collaboration. From inception through September 30, 2020, we have received more than $80 million from our Janssen collaboration. During the three and nine months ended September 30, 2020, we earned the following revenue from our relationship with Janssen (in millions, except percentage amounts):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2020 |  |  | 2020 |
R&D revenue |  | $ | 5.0 |  |  | $ | 5.0 |
Percentage of total revenue |  |  | 3 | % |  |  | 1 | %
During the three and nine months ended September 30, 2019, we did not earn any revenue from our relationship with Janssen. We did not have any deferred revenue from our relationship with Janssen at September 30, 2020 or December 31, 2019. During the first nine months of 2020, we did not have any changes to our performance obligations, transaction price or the timing in which we expect to recognize revenue under our Janssen collaboration, except as noted below. In the third quarter of 2020, we achieved a $5 million milestone payment from Janssen when Janssen initiated a Phase 1 trial for ION253. We recognized this payment in full in the third quarter of 2020 because we did not have any performance obligation for the payment. We will achieve the next payment of $5 million if Janssen advances ION253 in development. Pfizer We entered into a license agreement with Pfizer for vupanorsen (formerly AKCEA-ANGPTL3-LRx), a medicine in development to treat people with cardiovascular diseases. We completed a Phase 2 study of vupanorsen in patients with elevated levels of triglycerides, or hypertriglyceridemia, type 2 diabetes and non-alcoholic fatty liver disease, or NAFLD. Pfizer is responsible for all development, regulatory activities and commercialization costs, if approved. From inception through September 30, 2020, we have received more than $255 million from Pfizer. In October 2020, we earned a $75 million milestone payment from Pfizer when Pfizer began a Phase 2b study of vupanorsen. We will achieve the next payment of $50 million if Pfizer continues to advance vupanorsen in development.

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