Segment Information

9 Months Ended

Sep. 30, 2020

Segment Information [Abstract]

Segment Information

7.  Segment Information

Through September 30, 2020, we had two reportable segments, Ionis Core and Akcea Therapeutics. At September 30, 2020 we owned approximately 76 percent of Akcea. In October 2020, we acquired the remaining common stock of Akcea which we did not own. 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. Our Ionis Core segment generates revenue from a multifaceted partnering strategy.

Akcea is 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 nine months ended September 30, 2020 and 2019 (in thousands), respectively.

Three Months Ended September 30, 2020	Ionis Core		Akcea Therapeutics			Elimination of Intercompany Activity			Total
Revenue:
Commercial revenue:
SPINRAZA royalties	$	74,171	$	—		$	—		$	74,171
Product sales, net		—		19,040			—			19,040
Licensing and other royalty revenue		2,975		—			(846	)		2,129
Total commercial revenue		77,146		19,040			(846	)		95,340
R&D revenue under collaborative agreements		64,309		430			—			64,739
Total segment revenue	$	141,455	$	19,470		$	(846	)	$	160,079
Total operating expenses	$	129,657	$	69,283		$	(2,324	)	$	196,616
Loss from operations	$	11,798	$	(49,813	)	$	1,478		$	(36,537	)

Three Months Ended September 30, 2019	Ionis Core		Akcea Therapeutics			Elimination of Intercompany Activity			Total
Revenue:
Commercial revenue:
SPINRAZA royalties	$	81,672	$	—		$	—		$	81,672
Product sales, net		—		11,945			—			11,945
Licensing and other royalty revenue		1,946		136			—			2,082
Total commercial revenue		83,618		12,081			—			95,699
R&D revenue under collaborative agreements		69,165		8,543			(5,515	)		72,193
Total segment revenue	$	152,783	$	20,624		$	(5,515	)	$	167,892
Total operating expenses	$	119,147	$	53,215		$	(6,993	)	$	165,369
Income (loss) from operations	$	33,636	$	(32,591	)	$	1,478		$	2,523

Nine Months Ended September 30, 2020	Ionis Core			Akcea Therapeutics			Elimination of Intercompany Activity			Total
Revenue:
Commercial revenue:
SPINRAZA royalties	$	211,925		$	—		$	—		$	211,925
Product sales, net		—			50,562			—			50,562
Licensing and other royalty revenue		8,809			—			(2,261	)		6,548
Total commercial revenue		220,734			50,562			(2,261	)		269,035
R&D revenue under collaborative agreements		167,870			7,358			(5,280	)		169,948
Total segment revenue	$	388,604		$	57,920		$	(7,541	)	$	438,983
Total operating expenses	$	396,259		$	204,084		$	(11,944	)	$	588,399
Loss from operations	$	(7,655	)	$	(146,164	)	$	4,403		$	(149,416	)

Nine Months Ended September 30, 2019	Ionis Core		Akcea Therapeutics			Elimination of Intercompany Activity			Total
Revenue:
Commercial revenue:
SPINRAZA royalties	$	211,884	$	—		$	—		$	211,884
Product sales, net		—		28,563			—			28,563
Licensing and other royalty revenue		8,466		6,172			(3,000	)		11,638
Total commercial revenue		220,350		34,735			(3,000	)		252,085
R&D revenue under collaborative agreements		294,512		176,328			(94,007	)		376,833
Total segment revenue	$	514,862	$	211,063		$	(97,007	)	$	628,918
Total operating expenses	$	355,437	$	256,152		$	(87,900	)	$	523,689
Income (loss) from operations	$	159,425	$	(45,089	)	$	(9,107	)	$	105,229

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

Total Assets	Ionis Core		Akcea Therapeutics		Elimination of Intercompany Activity			Total
September 30, 2020	$	3,436,990	$	507,977	$	(849,266	)	$	3,095,701
December 31, 2019	$	3,478,081	$	599,250	$	(844,219	)	$	3,233,112