Segment Information and Concentration of Business Risk

3 Months Ended

Mar. 31, 2016

Segment Information and Concentration of Business Risk [Abstract]

Segment Information and Concentration of Business Risk

7. Segment Information and Concentration of Business Risk

We have two reportable segments Ionis Core and Akcea Therapeutics, our wholly owned subsidiary. Segment loss from operations includes revenue less operating expenses attributable to each segment.

In our Ionis Core segment we are exploiting a novel drug discovery platform we created to generate a broad pipeline of first-in-class or best-in-class drugs for us and our partners. Our Ionis Core segment generates revenue from a multifaceted partnering strategy.

We formed Akcea to develop and commercialize drugs for patients with serious cardiometabolic diseases caused by lipid disorders. Moving our lipid drugs into a company that we own and control ensures that our core focus at Ionis remains on innovation while allowing us to maintain control over and retain more value from our lipid drugs. To date, Akcea has not earned any revenue.

The following table shows our segment revenue and loss from operations for the three months ended March 31, 2016 and March 31, 2015 (in thousands), respectively.

March 31, 2016	Ionis Core			Akcea Therapeutics			Elimination of Intercompany Activity			Total
Revenue:
Research and development	$	35,214		$	—		$	—		$	35,214
Licensing and royalty		1,660			—			—			1,660
Total segment revenue	$	36,874		$	—		$	—		$	36,874
Loss from operations	$	(38,567	)	$	(16,049	)	$	(36	)	$	(54,652	)

March 31, 2015	Ionis Core			Akcea Therapeutics			Total
Revenue:
Research and development	$	61,892		$	—		$	61,892
Licensing and royalty		691			—			691
Total segment revenue	$	62,583		$	—		$	62,583
Loss from operations	$	(2,325	)	$	(7,005	)	$	(9,330	)

The following table shows our total assets by segment at March 31, 2016 and December 31, 2015 (in thousands), respectively.

Total Assets	Ionis Core		Akcea Therapeutics		Elimination of Intercompany Activity			Total
March 31, 2016	$	936,903	$	65,131	$	(126,215	)	$	875,819
December 31, 2015	$	995,852	$	66,306	$	(114,258	)	$	947,900

We have historically funded our operations from collaborations with corporate partners and a relatively small number of partners have accounted for a significant percentage of our revenue. Revenue from significant partners, which is defined as ten percent or more of our total revenue, was as follows:

	Three Months Ended March 31,
	2016		2015
Partner A		58%		63%
Partner B		14%		26%

Contracts receivables from two significant partners comprised approximately 98 percent and 99 percent of our contracts receivables at March 31, 2016 and December 31, 2015, respectively.