Ionis Pharmaceuticals kept its 2022 outlook intact Tuesday despite a broad second-quarter miss, and IONS stock dropped below a buy point.
The biotech company says it's on track to meet its financial goals this year. Previously, Ionis said it expects more than $575 million in sales. But that's below revenue forecasts for $602.8 million, and would decline year over year. Ionis also expects a net loss of less than $275 million.
Next year, Ionis hopes to launch two new medicines, a treatment for hereditary polyneuropathy and a treatment for the genetic form of amyotrophic lateral sclerosis, or ALS. Polyneuropathy is a nerve condition. Also known as Lou Gehrig's disease, ALS causes progressive muscle weakness.
"We also significantly advanced our late- and midstage pipeline," Chief Executive Brett Monia said in a written statement. These efforts put Ionis in position to grow its pipeline to eight drugs across 10 diseases, he added.
On today's stock market, IONS stock skidded 3.2% to finish at 44.26. Shares broke out of a consolidation with a buy point at 44.52 last week, according to MarketSmith.com.
IONS Stock: Losses Widen And Miss
During the June quarter, Ionis lost 74 cents per share, widening from a 57-cent loss in the year-earlier period. That missed expectations for 61 cents in losses, according to FactSet. Sales also lagged at $134 million, up 6%. IONS stock analysts predicted $140.5 million in sales.
The lion's share of Ionis' revenue comes from Spinraza, a spinal muscular atrophy treatment in partnership with Biogen. Biogen paid Ionis $60 million in June-quarter royalties. But that measure fell 20% year over year.
Meanwhile, sales of Tegsedi and Waylivra sank to $10 million. Tegsedi treats a disorder in which abnormal protein builds up on the nerves, causing systemic problems. Waylivra helps treats a condition in which the body can't properly break down triglycerides.
Other licensing and royalty revenue climbed to $8 million. Ionis also reported $39 million in collaboration revenue and $56 million in research and development revenue.
Highly Rated Biotech Stock
In addition to a recent breakout, IONS stock has also climbed in IBD Digital rankings. Shares now have a strong Relative Strength Rating of 97, which puts their performance over the last 12 months in the leading 3% of all stocks.
Shares also have a Composite Rating of 96. This means IONS stock ranks in the top 4% of all stocks for fundamental and technical measures.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
