Segment Information and Concentration of Business Risk

12 Months Ended

Dec. 31, 2020

Segment Information and Concentration of Business Risk [Abstract]

Segment Information and Concentration of Business Risk

9. Segment Information and Concentration of Business Risk

Through 2020, we had two reportable segments, our Ionis Core segment and Akcea Therapeutics. We have provided segment financial information and results for our Ionis Core segment and our Akcea Therapeutics segment based on the segregation of revenues and expenses that our chief decision maker reviewed to assess operating performance and to make operating decisions through 2020. 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 was focused on developing and commercializing medicines to treat patients with serious and rare diseases. Akcea generated revenue from TEGSEDI and WAYLIVRA product sales and from its collaborations.

The following tables show our segment revenue and income (loss) from operations for 2020, 2019 and 2018 (in thousands), respectively.

2020	Ionis Core		Akcea Therapeutics			Elimination of Intercompany Activity			Total
Revenue:
Commercial revenue:
SPINRAZA royalties	$	286,583	$	—		$	—		$	286,583
Product sales, net		—		69,999			—			69,999
Licensing and other royalty revenue		11,334		—			(3,217	)		8,117
Total commercial revenue		297,917		69,999			(3,217	)		364,699
R&D revenue under collaborative agreements		325,024		82,321			(42,780	)		364,565
Total segment revenue	$	622,941	$	152,320		$	(45,997	)	$	729,264
Total operating expenses	$	563,647	$	389,575		$	(51,876	)	$	901,346
Income (loss) from operations	$	59,294	$	(237,255	)	$	5,879		$	(172,082	)

2019	Ionis Core		Akcea Therapeutics		Elimination of Intercompany Activity			Total
Revenue:
Commercial revenue:
SPINRAZA royalties	$	292,992	$	—	$	—		$	292,992
Product sales, net		—		42,253		—			42,253
Licensing and other royalty revenue		12,616		10,172		(5,583	)		17,205
Total commercial revenue		305,608		52,425		(5,583	)		352,450
R&D revenue under collaborative agreements		553,038		436,118		(219,007	)		770,149
Total segment revenue	$	858,646	$	488,543	$	(224,590	)	$	1,122,599
Total operating expenses	$	523,207	$	450,469	$	(216,960	)	$	756,716
Income (loss) from operations	$	335,439	$	38,074	$	(7,630	)	$	365,883

2018	Ionis Core		Akcea Therapeutics			Elimination of Intercompany Activity			Total
Revenue:
Commercial revenue:
SPINRAZA royalties	$	237,930	$	—		$	—		$	237,930
Product sales, net		—		2,237			—			2,237
Licensing and other royalty revenue		2,755		12,000			—			14,755
Total commercial revenue		240,685		14,237			—			254,922
R&D revenue under collaborative agreements		401,259		50,630			(107,137	)		344,752
Total segment revenue	$	641,944	$	64,867		$	(107,137	)	$	599,674
Total operating expenses	$	380,212	$	295,683		$	(14,849	)	$	661,046
Income (loss) from operations	$	261,732	$	(230,816	)	$	(92,288	)	$	(61,372	)

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

Total Assets	Ionis Core		Akcea Therapeutics		Elimination of Intercompany Activity			Total
December 31, 2020	$	2,792,222	$	435,824	$	(838,291	)	$	2,389,755
December 31, 2019	$	3,478,081	$	599,250	$	(844,219	)	$	3,233,112

Contracts receivables at December 31, 2020 was comprised of approximately 99.5percent from two significant partners. Contracts receivables at December 31, 2019 was comprised of approximately 75 percent from one significant partner.