Segment Information

6 Months Ended

Jun. 30, 2020

Segment Information [Abstract]

Segment Information

7.  Segment Information

We have two reportable segments, Ionis Core and Akcea Therapeutics. At June 30, 2020 we owned approximately 76 percent of Akcea. Segment income (loss) from operations includes revenue less operating expenses attributable to each segment.

In our Ionis Core segment we are exploiting our antisense technology to generate a broad pipeline of first-in-class and/or best-in-class medicines for us and our partners. Our Ionis Core segment generates revenue from a multifaceted partnering strategy.

Akcea is a biopharmaceutical company focused on developing and commercializing medicines to treat patients with serious and rare diseases. Akcea generates revenue from TEGSEDI and WAYLIVRA product sales and from its collaborations.

The following tables show our segment revenue and income (loss) from operations for the three and six months ended June 30, 2020 and 2019 (in thousands), respectively.

Three Months Ended June 30, 2020	Ionis Core			Akcea Therapeutics			Elimination of Intercompany Activity			Total
Revenue:
Commercial revenue:
SPINRAZA royalties	$	71,746		$	—		$	—		$	71,746
Product sales, net		—			16,364			—			16,364
Licensing and other royalty revenue		2,237			—			(613	)		1,624
Total commercial revenue		73,983			16,364			(613	)		89,734
R&D revenue under collaborative agreements		55,070			6,013			(5,280	)		55,803
Total segment revenue	$	129,053		$	22,377		$	(5,893	)	$	145,537
Total operating expenses	$	131,177		$	73,468		$	(7,354	)	$	197,291
Loss from operations	$	(2,124	)	$	(51,091	)	$	1,461		$	(51,754	)

Three Months Ended June 30, 2019	Ionis Core		Akcea Therapeutics			Elimination of Intercompany Activity			Total
Revenue:
Commercial revenue:
SPINRAZA royalties	$	70,502	$	—		$	—		$	70,502
Product sales, net		—		9,865			—			9,865
Licensing and other royalty revenue		4,896		6,036			(3,000	)		7,932
Total commercial revenue		75,398		15,901			(3,000	)		88,299
R&D revenue under collaborative agreements		64,791		10,723			—			75,514
Total segment revenue	$	140,189	$	26,624		$	(3,000	)	$	163,813
Total operating expenses	$	121,774	$	65,328		$	(4,462	)	$	182,640
Income (loss) from operations	$	18,415	$	(38,704	)	$	1,462		$	(18,827	)

Six Months Ended June 30, 2020	Ionis Core			Akcea Therapeutics			Elimination of Intercompany Activity			Total
Revenue:
Commercial revenue:
SPINRAZA royalties	$	137,754		$	—		$	—		$	137,754
Product sales, net		—			31,523			—			31,523
Licensing and other royalty revenue		5,835			—			(1,416	)		4,419
Total commercial revenue		143,589			31,523			(1,416	)		173,696
R&D revenue under collaborative agreements		103,561			6,928			(5,280	)		105,209
Total segment revenue	$	247,150		$	38,451		$	(6,696	)	$	278,905
Total operating expenses	$	266,602		$	134,800		$	(9,618	)	$	391,784
Loss from operations	$	(19,452	)	$	(96,349	)	$	2,922		$	(112,879	)

Six Months Ended June 30, 2019	Ionis Core		Akcea Therapeutics			Elimination of Intercompany Activity			Total
Revenue:
Commercial revenue:
SPINRAZA royalties	$	130,212	$	—		$	—		$	130,212
Product sales, net		—		16,619			—			16,619
Licensing and other royalty revenue		6,519		6,036			(3,000	)		9,555
Total commercial revenue		136,731		22,655			(3,000	)		156,386
R&D revenue under collaborative agreements		225,347		167,785			(88,492	)		304,640
Total segment revenue	$	362,078	$	190,440		$	(91,492	)	$	461,026
Total operating expenses	$	236,290	$	202,938		$	(80,908	)	$	358,320
Income (loss) from operations	$	125,788	$	(12,498	)	$	(10,584	)	$	102,706

The following table shows our total assets by segment at June 30, 2020 and December 31, 2019 (in thousands), respectively.

Total Assets	Ionis Core		Akcea Therapeutics		Elimination of Intercompany Activity			Total
June 30, 2020	$	3,397,604	$	527,937	$	(846,591	)	$	3,078,950
December 31, 2019	$	3,478,081	$	599,250	$	(844,219	)	$	3,233,112