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Isis Reports Financial Results and Highlights for Fiscal year 2007
Date:3/13/2008

Phase 3 program for mipomersen including studies in patients with heterozygous Familial Hypercholesterolemia," said Ms. Parshall. "We also plan to report additional clinical safety data this year."

Results of Operations

The 43% decrease in the Company's loss from operations for 2007 compared to 2006 was primarily a result of a significant increase in revenue in 2007 from corporate partnerships offset, somewhat, by higher expenses associated with the expansion of its key programs and an increase in non-cash stock compensation reflecting the increase in Isis' stock price from 2006 to 2007. The reasons for the decrease in the Company's pro forma loss from operations were the same as those for the decrease in the Company's loss from operations according to GAAP other than the effect of non-cash compensation expense related to stock options.

As illustrated in the Selected Financial Information in this press release, pro forma operating expenses and pro forma loss from operations were adjusted from GAAP to exclude compensation expense related to stock options, which are non-cash, and costs associated with restructuring activities, which are not part of ongoing operations. Isis has regularly reported non-GAAP measures for operating expenses and loss from operations as pro forma results. These measures are provided as supplementary information and are not a substitute for financial measures calculated in accordance with GAAP. Isis reports these pro forma results to better enable financial statement users to assess and compare its historical performance and project its future operating results and cash flows. Further, the presentation of Isis' pro forma results is consistent with how Isis' management internally evaluates the performance of its operations.

Revenue

Total revenue for the quarter and year ended December 31, 2007 was $24.7 million and $69.6 million, respectively, compared to $11.9 million and $24.5 million for the same periods
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SOURCE Isis Pharmaceuticals, Inc.
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