Analyst Note
| Karen Andersen, CFA |We're raising our Ionis fair value estimate to $66 from $58 after awarding the firm a narrow economic moat (previously none) based on the firm's spinal muscular atrophy therapy Spinraza, solid late-stage pipeline, and growing mid-stage pipeline of wholly-owned programs, all of which benefit from increasing validation of the firm's antisense oligonucleotide (RNA-based) drug technology. Third-quarter results came in as expected, with collaboration revenue poised to jump in the fourth quarter and allow the firm to meet the maintained full-year guidance for revenue over $700 million. Shares look undervalued as the firm approaches several key pipeline-related catalysts.