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v3.21.2

Significant Accounting Policies (Tables) | 9 Months Ended
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Sep. 30, 2021
Significant Accounting Policies [Abstract] |
Inventory | Our inventory consisted of the following (in thousands):
|  | September 30, 2021 |  |  | December 31, 2020 |
Raw materials: |  |  |  |  |  |
Raw materials- clinical |  | $ | 11,993 |  |  | $ | 9,206 |
Raw materials- commercial |  |  | 4,147 |  |  |  | 7,502 |
Total raw materials |  |  | 16,140 |  |  |  | 16,708 |
Work in process |  |  | 6,183 |  |  |  | 2,252 |
Finished goods |  |  | 607 |  |  |  | 3,005 |
Total inventory |  | $ | 22,930 |  |  | $ | 21,965 |
Basic Net Loss per Share | We calculated our basic net loss per share for the three months ended September 30, 2020 as follows (in thousands, except per share amounts):
Three months ended September 30, 2020 |  | Weighted Average Shares Owned in Akcea |  |  | Akcea’s Net Loss Per Share |  |  | Basic Net Loss Per Share Calculation (as revised*) |
Ionis’ portion of Akcea’s net loss |  |  | 77,095 |  |  | $ | (0.49 | ) |  | $ | (37,822 | )
Akcea’s net loss attributable to our ownership |  |  |  |  |  |  |  |  |  | $ | (37,822 | )
Ionis’ stand-alone net income |  |  |  |  |  |  |  |  |  |  | 13,251 |
Net loss available to Ionis common stockholders |  |  |  |  |  |  |  |  |  | $ | (24,571 | )
Weighted average shares outstanding |  |  |  |  |  |  |  |  |  |  | 139,708 |
Basic net loss per share |  |  |  |  |  |  |  |  |  | $ | (0.18 | )
We calculated our basic net loss per share for the nine months ended September 30, 2020 as follows (in thousands, except per share amounts):
Nine months ended September 30, 2020 |  | Weighted Average Shares Owned in Akcea |  |  | Akcea’s Net Loss Per Share |  |  | Basic Net Loss Per Share Calculation (as revised*) |
Ionis’ portion of Akcea’s net loss |  |  | 77,095 |  |  | $ | (1.40 | ) |  | $ | (108,176 | )
Akcea’s net loss attributable to our ownership |  |  |  |  |  |  |  |  |  | $ | (108,176 | )
Ionis’ stand-alone net income |  |  |  |  |  |  |  |  |  |  | 18,235 |
Net loss available to Ionis common stockholders |  |  |  |  |  |  |  |  |  | $ | (89,941 | )
Weighted average shares outstanding |  |  |  |  |  |  |  |  |  |  | 139,497 |
Basic net loss per share |  |  |  |  |  |  |  |  |  | $ | (0.64 | )
* | We revised our 2020 amounts to reflect the simplified convertible instruments accounting guidance, which we adopted retrospectively. Refer to Note 2, Significant Accounting Policies, for further information.
Adoption of ASU 2020-06 | The following table summarizes the adjustments we made to the condensed consolidated balance sheet we originally reported at December 31, 2020 to adopt ASU 2020-06 (in thousands):
|  | December 31, 2020 |
|  | As Previously Reported |  |  | ASU 2020-06 Adjustment |  |  | As Revised |
1 percent convertible senior notes |  | $ | 293,161 |  |  | $ | 15,648 |  |  | $ | 308,809 |
0.125 percent convertible senior notes |  | $ | 455,719 |  |  | $ | 84,417 |  |  | $ | 540,136 |
Additional paid-in-capital |  | $ | 2,113,646 |  |  | $ | (218,127 | ) |  | $ | 1,895,519 |
Accumulated deficit |  | $ | (1,249,368 | ) |  | $ | 118,062 |  |  | $ | (1,131,306 | )
The following tables summarize the adjustments we made to the condensed consolidated statement of operations we originally reported for the three and nine months ended September 30, 2020 to adopt ASU 2020-06 (in thousands):
|  | Three Months Ended September 30, 2020 |
|  | As Previously Reported |  |  | ASU 2020-06 Adjustment |  |  | As Revised |
Interest expense |  | $ | (11,321 | ) |  | $ | 8,893 |  |  | $ | (2,428 | )
Loss before income tax expense |  | $ | (40,443 | ) |  | $ | 8,893 |  |  | $ | (31,550 | )
Income tax expense |  | $ | (2,648 | ) |  | $ | (2,416 | ) |  | $ | (5,064 | )
Net loss |  | $ | (43,091 | ) |  | $ | 6,477 |  |  | $ | (36,614 | )
Net loss attributable to Ionis Pharmaceuticals, Inc. common stockholders |  | $ | (30,944 | ) |  | $ | 6,477 |  |  | $ | (24,467 | )
Basic and diluted net loss per share |  | $ | (0.22 | ) |  | $ | 0.04 |  |  | $ | (0.18 | )
|  | Nine Months Ended September 30, 2020 |
|  | As Previously Reported |  |  | ASU 2020-06 Adjustment |  |  | As Revised |
Interest expense |  | $ | (33,484 | ) |  | $ | 26,408 |  |  | $ | (7,076 | )
Loss before income tax benefit (expense) |  | $ | (146,387 | ) |  | $ | 26,408 |  |  | $ | (119,979 | )
Income tax benefit (expense) |  | $ | 1,047 |  |  | $ | (5,124 | ) |  | $ | (4,077 | )
Net loss |  | $ | (145,340 | ) |  | $ | 21,284 |  |  | $ | (124,056 | )
Net loss attributable to Ionis Pharmaceuticals, Inc. common stockholders |  | $ | (111,015 | ) |  | $ | 21,284 |  |  | $ | (89,731 | )
Basic and diluted net loss per share |  | $ | (0.80 | ) |  | $ | 0.16 |  |  | $ | (0.64 | )
The following tables summarize the adjustments we made to our condensed consolidated statements of stockholders’ equity we originally reported at December 31, 2020 and 2019 to adopt ASU 2020-06 (in thousands):
|  | December 31, 2020 |
|  | As Previously Reported |  |  | ASU 2020-06 Adjustment |  |  | As Revised |
Additional paid-in-capital |  | $ | 2,113,646 |  |  | $ | (218,127 | ) |  | $ | 1,895,519 |
Accumulated deficit |  | $ | (1,249,368 | ) |  | $ | 118,062 |  |  | $ | (1,131,306 | )
Total stockholders’ equity |  | $ | 843,347 |  |  | $ | (100,065 | ) |  | $ | 743,282 |
|  | December 31, 2019 |
|  | As Previously Reported |  |  | ASU 2020-06 Adjustment |  |  | As Revised |
Additional paid-in-capital |  | $ | 2,203,778 |  |  | $ | (218,128 | ) |  | $ | 1,985,650 |
Accumulated deficit |  | $ | (707,534 | ) |  | $ | 111,039 |  |  | $ | (596,495 | )
Total stockholders’ equity |  | $ | 1,684,547 |  |  | $ | (107,089 | ) |  | $ | 1,577,458 |
Weighted-Average Assumptions for Stock Options | Employee Stock Options:
|  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |
Risk-free interest rate |  |  | 0.5 | % |  |  | 1.5 | %
Dividend yield |  |  | 0.0 | % |  |  | 0.0 | %
Volatility |  |  | 54.3 | % |  |  | 58.8 | %
Expected life |  | 4.9 years |  |  | 4.7 years |
Ionis Board of Director Stock Options:
|  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |
Risk-free interest rate |  |  | 1.2 | % |  |  | 0.5 | %
Dividend yield |  |  | 0.0 | % |  |  | 0.0 | %
Volatility |  |  | 55.9 | % |  |  | 57.6 | %
Expected life |  | 7.3 years |  |  | 6.7 years |
Weighted-Average Assumptions for ESPP | ESPP:
|  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |
Risk-free interest rate |  |  | 0.1 | % |  |  | 0.8 | %
Dividend yield |  |  | 0.0 | % |  |  | 0.0 | %
Volatility |  |  | 42.4 | % |  |  | 47.9 | %
Expected life |  | 6 months |  |  | 6 months |
Stock-Based Compensation Expense | The following table summarizes stock-based compensation expense for the three and nine months ended September 30, 2021 and 2020 (in thousands).
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Cost of sales |  | $ | 111 |  |  | $ | 315 |  |  | $ | 293 |  |  | $ | 902 |
Research, development and patent expense |  |  | 23,332 |  |  |  | 25,359 |  |  |  | 71,979 |  |  |  | 76,931 |
Selling, general and administrative expense |  |  | 7,094 |  |  |  | 20,171 |  |  |  | 26,147 |  |  |  | 57,244 |
Total non-cash stock-based compensation expense |  | $ | 30,537 |  |  | $ | 45,845 |  |  | $ | 98,419 |  |  | $ | 135,077 |

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