Skip to content
    IONS
    Earnings call· Dec 2025(Q4 FY25)

    IONIS PHARMACEUTICALS Q4 FY25 earnings call IONS

    Feb 25, 2026 Source

    Executive summary

    Ionis Q4 FY25 — Strong Commercial Launches & Pipeline Progress

    Ionis transitioned to a fully integrated commercial-stage company in FY25, marked by successful independent launches of TRYNGOLZA and DAWNZERA, alongside multiple positive pipeline readouts. The company is poised for further growth in 2026 with additional anticipated launches and late-stage data, aiming for cash flow breakeven by 2028. Near-term revenue for TRYNGOLZA is expected to decline ahead of a broader sHTG launch, as the company navigates payer discussions and pricing strategies.

    Highlights

    5
    • TRYNGOLZA exceeded expectations in its first year, generating $108 million in FY25 product sales, with Q4 sales of $50 million representing a 56% increase QoQ.

    • DAWNZERA launch showed an encouraging start with 100% conversion from its free trial program to paid therapy.

    • Olezarsen Phase III results demonstrated highly significant and substantial reductions in triglycerides (up to 72%) and acute pancreatitis events (85% reduction), leading to Breakthrough Therapy Designation.

    • Zilganersen NDA was submitted in January 2026 based on positive Phase III results, with anticipated approval and launch in H2 2026.

    • Bepirovirsen showed clinically meaningful and unprecedented functional cure rates in its Phase III program, with GSK preparing global regulatory submissions.

    Concerns

    3
    • TRYNGOLZA revenues are expected to see a meaningful decline throughout 2026 ahead of the sHTG launch due to ongoing payer discussions and pricing dynamics.

    • The company projects a non-GAAP operating loss between $500 million and $550 million for FY26, assuming a standard review for olezarsen.

    • DAWNZERA's launch in a primarily switch market means patient conversion from existing therapies is expected to take some time.

    Guidance & targets

    22
    CategoryTargetConfidence
    Full-year 2026 Revenue (adjusted for one-time license fee)
    $800M-$825M
    high materiality
    High
    Full-year 2026 Non-GAAP Operating Expenses
    low-teen percentage increase
    medium materiality
    High
    Full-year 2026 Non-GAAP Operating Loss
    $500M-$550M
    high materiality
    High
    Cash Flow Breakeven
    by 2028
    high materiality
    High
    Olezarsen annual peak sales
    more than $2 billion
    high materiality
    High
    DAWNZERA annual peak sales
    in excess of $500 million
    medium materiality
    High
    Zilganersen peak revenue
    greater than $100 million
    low materiality
    Medium
    Pelacarsen Lp(a) HORIZON trial readout
    midyear
    high materiality
    High
    Eplontersen CARDIO-TTRansform trial readout
    second half of 2026
    medium materiality
    High
    Bepirovirsen global regulatory submissions and launch
    later this year
    high materiality
    High
    Sefaxersen and Ulefnersen Phase III readouts
    later this year
    medium materiality
    High
    Obudanersen Phase III REVEAL study full enrollment
    expected this year
    medium materiality
    High
    Obudanersen Phase III REVEAL study data
    next year
    medium materiality
    High
    High-dose SPINRAZA PDUFA date
    April 1
    medium materiality
    High
    Salanersen Phase III study start
    this year
    medium materiality
    High
    Sapablursen Phase III study start
    this year
    medium materiality
    High
    Olezarsen sHTG launch readiness
    by June
    high materiality
    High
    Olezarsen sHTG approval
    Q4
    high materiality
    Medium
    Zilganersen approval and launch
    second half of this year
    medium materiality
    High
    ION464 and ION717 data readouts
    next year
    low materiality
    High
    VHH BBB molecule IND supporting toxicology studies
    later this year
    low materiality
    High
    Cash and Investments balance
    approximately $1.6 billion
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Commercial Products
    Strong first year for TRYNGOLZA and encouraging start for DAWNZERA, contributing to growing recurring revenue.
    TRYNGOLZA product sales: $108M (FY25)TRYNGOLZA product sales: $50M (Q4 FY25)TRYNGOLZA QoQ growth: 56% (Q4 FY25)DAWNZERA product sales: $8M (FY25)
    $436M
    R&D Collaborations
    Acts as a financial accelerator, driven by progress across multiple partner programs, including a significant Sapablursen license fee.
    $508M+20%
    Royalty Revenues
    Anchored by meaningful contributions from SPINRAZA and growing royalties from WAINUA.
    $285M+11%
    Total Revenue
    Overall revenue growth for 2025, exceeding financial guidance.
    $944M+34%

    Operational metrics

    12
    Revenue (adjusted for one-time license fee)
    $800M-$825M+20% YoY (like-for-like)
    FY26

    Projected revenue for 2026, excluding the $280 million one-time Sapablursen license fee from 2025. Assumes standard review for olezarsen.

    Non-GAAP Operating Expenses
    low-teen percentage increaseYoY
    FY26

    Projected increase in operating expenses for 2026, reflecting disciplined investment to support launches and pipeline.

    Non-GAAP Operating Loss
    $500M-$550Msimilar level compared to 2025 (excluding one-time fee)
    FY26

    Projected operating loss for 2026, assuming a standard review for olezarsen.

    Cash and Investments balance
    $1.6B
    End of FY26

    Projected balance at the end of 2026, reflecting repayment of convertible notes and strategic investments.

    Cash Flow Breakeven
    by 2028
    FY28

    Company goal for achieving cash flow breakeven.

    Sapablursen license fee
    $280M
    FY25

    One-time license fee received in 2025, monetizing a noncore asset.

    DAWNZERA EU approval milestone
    $15M
    Q1 FY26

    Milestone payment earned in Q1 2026 for the EU approval of DAWNZERA.

    Roche Phase I Alzheimer's milestone
    $50M
    Q1 FY26

    Milestone payment earned in Q1 2026 when Roche initiated a Phase I trial for an investigational Alzheimer's medicine.

    Field team members
    approximately 200
    Current

    Full field organization in place, hired, trained, and deployed to support sHTG launch.

    High-volume sHTG prescribers
    approximately 20,000
    Current

    Target for engagement by the expanded field team for the sHTG launch.

    2026 convertible notes repayment
    $433M
    FY26

    Earmarked for repayment of remaining convertible notes in 2026.

    TRYNGOLZA payer mix
    60% commercial, 40% government
    Current

    Current payer mix for TRYNGOLZA patients.

    Industry KPIs

    7
    MetricValueDetails
    Launch access metricsTRYNGOLZA payer mix: 60% commercial, 40% government; DAWNZERA free trial conversion: 100%%
    Pipeline read out calendarMultiple Phase III readouts and regulatory milestones
    Regulatory approvals filingsMultiple approvals and submissions
    Peak long term sales guidanceOlezarsen >$2B; DAWNZERA >$500M; Zilganersen >$100M; Bepirovirsen ~$2.5B (GSK estimate)USD
    Clinical trial efficacy safety dataOlezarsen: up to 72% triglyceride reduction, 85% reduction in acute pancreatitis events; Zilganersen: statistically significant clinical meaningful differences on primary motor functional test endpoint.%
    Collaboration milestone royalty revenue$285MUSD
    Cumulative patients uptake since launchApproximately 300patients

    Deals & partnerships

    6
    SobiPartner for TRYNGOLZA in Europe

    Sobi is responsible for bringing TRYNGOLZA to patients in Europe.

    OtsukaPartner for DAWNZERA in Europe

    Otsuka is responsible for bringing DAWNZERA to patients across Europe.

    GSKPartner for Bepirovirsen (chronic HBV)

    GSK is preparing global regulatory submissions for Bepirovirsen following positive Phase III data.

    NovartisPartner for pelacarsen (Lp(a))

    Novartis is conducting the HORIZON trial for pelacarsen.

    AstraZenecaLicensed ION532 for APOL1-mediated kidney disease

    AstraZeneca advanced ION532 to Phase II based on strong Phase I data.

    RochePartner for investigational Alzheimer's medicine

    Roche initiated a Phase I trial for an investigational Alzheimer's medicine.

    Risks & headwinds

    4
    TRYNGOLZA revenue decline ahead of sHTG launchthroughout 2026

    meaningful decline

    Mitigation: Actively engaging with payers to ensure broad access and manage pricing dynamics; preparing for sHTG launch to drive accelerating growth post-approval.

    Standard review for olezarsen sHTG approvalFY26

    delays significant sHTG revenue contribution until Q4 2026

    Mitigation: Guidance is based on standard review; if priority review is granted, guidance would improve. Launch readiness by June 2026 to quickly capitalize on approval.

    DAWNZERA launch in a switch marketearly stages of launch

    patient conversion from existing therapies to take some time

    Mitigation: Educating patients and physicians on DAWNZERA's attractive profile; strong launch fundamentals including increasing demand, high referral-to-start conversion, positive patient outcomes, and rapid uptake of free trial program.

    Pelacarsen HORIZON trial outcome uncertaintymidyear 2026

    risk of doing something for the first time

    Mitigation: Confidence in outcome based on epidemiology, study conduct, positive interim analyses, and partner observations; pelacarsen has a meaningful first-mover advantage.

    What to watch in Q1 FY26

    5

    Olezarsen sNDA priority review decision

    next quarter
    CurrentWithin FDA filing review period
    TargetDecision on priority review

    Why it matters

    A priority review would accelerate olezarsen's approval and launch, significantly impacting 2026 revenue guidance and market entry for sHTG.

    We requested priority review and expect a decision from the FDA shortly.

    Q&A highlights

    7

    Clarification on whether 2026 guidance includes sHTG sales, new royalty income from milestones, and if TRYNGOLZA pricing is matching a competitor.

    Management clarified that 2026 guidance assumes olezarsen sHTG sales only in Q4 due to a standard review assumption, and limited new royalty income from Bepirovirsen due to its late-year launch. They did not confirm matching competitor pricing for TRYNGOLZA but stated they are actively engaging with payers to ensure broad access while maximizing value, expecting a meaningful decline in TRYNGOLZA revenue before sHTG launch.

    So we are assuming sales and revenue from olezarsen in the sHTG patient population. But with the assumption of standard review, that would be in really just the fourth quarter of the year.

    asked by Yaron Werber · answered by Elizabeth L. Hougen

    3 min read6 chapters

    Detailed Narrative

    01

    Olezarsen sHTG Launch & Breakthrough Status

    Ionis' olezarsen demonstrated groundbreaking Phase III results in severe hypertriglyceridemia (sHTG), achieving up to 72% reduction in triglycerides and an 85% reduction in acute pancreatitis events. This positions olezarsen as the first medicine to show benefit in reducing acute pancreatitis risk, earning it Breakthrough Therapy Designation from the FDA. The sNDA was submitted at the end of 2025, and the company anticipates being launch-ready by June 2026, with an expected approval in Q4 2026 under a standard review assumption. The company has increased its annual peak revenue estimates for olezarsen to over $2 billion, driven by strong product profile and HCP enthusiasm.

    02

    Zilganersen for Alexander Disease Progress

    Zilganersen, an innovative medicine for Alexander's disease, delivered positive Phase III results in 2025, marking the first time any therapy demonstrated a disease-modifying impact in this ultra-rare neurodegenerative condition. The NDA was submitted in January 2026, with anticipated approval and launch in the second half of 2026. Zilganersen is expected to be Ionis' first independent launch from its neurology franchise, targeting approximately 300 patients in the U.S. and projected to achieve peak revenues greater than $100 million. An expanded access program has been initiated to provide early patient access.

    03

    Partnered Pipeline Catalysts

    The partnered pipeline is poised for multiple significant events in 2026. Bepirovirsen for chronic hepatitis B showed positive top-line Phase III data in January, demonstrating clinically meaningful functional cure rates, with GSK preparing global regulatory submissions for a potential launch later this year. Key cardiovascular outcome trials, pelacarsen Lp(a) HORIZON and Eplontersen CARDIO-TTRansform, are expected to read out midyear and in H2 2026, respectively. Additionally, sefaxersen for IgA nephropathy and ulefnersen for FUS-ALS are slated for Phase III readouts later in the year, potentially leading to four additional launches by the end of 2027.

    04

    Commercial Performance of TRYNGOLZA & DAWNZERA

    TRYNGOLZA had a strong first year on the market, generating $108 million in product sales for FY25, with Q4 sales reaching $50 million, a 56% increase QoQ. Demand remains strong, with no meaningful impact from new market entrants. DAWNZERA, launched in August 2025, showed an encouraging start with $8 million in product sales for FY25 and 100% conversion from its free trial program. Both products are seeing high prescriber and patient satisfaction, though TRYNGOLZA revenues are expected to decline meaningfully in 2026 ahead of the sHTG launch due to payer negotiations.

    05

    Financial Outlook & Operating Leverage

    Ionis reported $944 million in total revenue for 2025, a 34% increase YoY, split between $436 million from commercial products and $508 million from R&D collaborations. For 2026, the company projects adjusted revenue of $800 million to $825 million, representing a 20% increase on a like-for-like basis. Operating expenses are expected to increase in the low-teen percentages, driving improved operating leverage. The company anticipates a non-GAAP operating loss of $500 million to $550 million for 2026, while remaining on track to achieve cash flow breakeven by 2028.

    06

    Neurology Pipeline Expansion

    The neurology pipeline continues to advance with Obudanersen for Angelman Syndrome receiving Breakthrough Therapy Designation in late 2025. The Phase III REVEAL study for Obudanersen is expected to achieve full enrollment in 2026, with data anticipated in 2027. Furthermore, ION464 for multiple system atrophy and ION717 for Prion disease are undergoing studies with additional dose cohorts, and data from both programs are now expected in 2027. The company is also making progress on its blood-brain barrier penetrating platforms, with the first VHH BBB molecule in manufacturing and IND-supporting toxicology studies planned for later in 2026.

    AI-generated summary of the company’s earnings call. Not investment advice.