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Isis Reports Financial Results and Highlights for Third Quarter 2010
Date:11/4/2010

of tax-34-187,124Net income (loss)(12,454)(12,718)(47,265)169,000Net loss attributable to noncontrolling interest in Regulus Therapeutics Inc.-1,136-2,906Net income (loss) attributable to Isis Pharmaceuticals, Inc. common stockholders$(12,454)$(11,582)$(47,265)$171,906Basic and diluted net income (loss) per share:Net loss from continuing operations attributable to Isis Pharmaceuticals, Inc. common stockholders$(0.13)$(0.12)$(0.48)$(0.16)Net income from discontinued operations---1.91Basic and diluted net income (loss) attributable to Isis Pharmaceuticals, Inc. common stockholders$(0.13)$(0.12)$(0.48)$1.75Shares used in computing basic and diluted net income (loss) per share99,19698,32099,10197,988(1)  During the preparation of the year end 2009 annual tax provision, Isis determined that certain tax items had been attributed to discontinued operations that are appropriately associated with continuing operations.  As a result, Isis revised the tax provisions reflected in each of the first three quarters during 2009 to reflect the correction of this allocation. The historical condensed consolidated statements of operations for the three and nine months ended September 30, 2009 reflect the revised tax provisions.Isis Pharmaceuticals, Inc.Reconciliation of Isis' 2009 Statement of OperationsAdjusted for Regulus Therapeutics Inc.(In Thousands, Except Per Share Data)(unaudited)Nine months ended September 30, 2009(as reported)Adjustments for Regulus(1)Nine months ended September 30, 2009(as adjusted)Revenue:Research and development revenue under collaborative agreements $86,415$(2,388)$84,027Licensing and royalty revenue2,924-2,924Total revenue89,339(2,388)86,951Expenses:Research and development 94,519(6,282)88,237General and administrative 10,685(1,982)8,703Total operating expenses105,204(8,264)96,940Loss from operations(15,865)5,876(9,989)Other income (expense):Equity in net loss of Regul
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