Isis Reports Financial Results and Highlights for First Quart...(pared to$2.7 million for the same period...),Health

Regulus Therapeutics LLC

In April 2008, Regulus entered into a strategic alliance with GlaxoSmith Kline (GSK) to discover, develop and market novel microRNA-targeted therapeutics. Regulus received $20 million in upfront payments from GSK, including a $15 million option fee and a $5 million note that will convert into Regulus common stock in the future under certain specified circumstances. The $15 million option fee will be amortized into revenue over Regulus' six-year period of performance. The $5 million note will be shown as a liability on Isis' Consolidated Balance Sheet.

Net Loss Applicable to Common Stock

Isis' net loss for the quarter ended March 31, 2008 was $4.3 million or $0.05 per share compared to $13.0 million or $0.16 per share for the first quarter of 2007. Isis' net loss for the first quarter of 2008 was lower than the first quarter of 2007 primarily due to the decrease in the Company's loss from operations and lower interest expense, offset by an increase in investment income and the $6.8 million loss attributed to the noncontrolling interest in Symphony GenIsis, Inc. that Isis recorded in the first quarter of 2007. Isis did not record this benefit in the first quarter of 2008 because it purchased all of the equity of Symphony GenIsis in the third quarter of 2007, saving $75 million in the predetermined purchase price.

Balance Sheet

As of March 31, 2008, Isis had cash, cash equivalents and short-term investments of $338.4 million compared to $193.7 million at December 31, 2007. As of March 31, 2008, Isis had consolidated working capital of $272.6 million compared to $145.1 million at December 31, 2007. The cash Isis received in the first quarter of 2008 from Genzyme ($150 million) and Abbott ($20 million) primar
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