IONS – Market expectations are for Uniform ROA to remain stable, but management may be concerned about drug trials, their pipeline, and operating income growth

• Ionis Pharmaceuticals, Inc. (IONS:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 25.4x Uniform P/E. At these levels, the market has expectations for profitability to remain near recent highs, but management may be concerned about their ongoing drug trials, the strength of their pipeline, and the sustainability of their operating income growth
• Specifically, management may be concerned about the success of their WAYLIVRA trial and about the timing of their IONIS-FXIR study. Furthermore, they may be exaggerating the strength and depth of their pipeline, and may be concerned about their development partnership with Bayer. Additionally, they may be concerned about the breadth of indications for prekallikrein, and may be exaggerating their excitement for their APOCIII drug. Finally, they may be concerned about the sustainability of SPINRAZA’s market leadership, and may lack confidence in their ability to sustain recent operating income growth.