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

us Therapeutics Inc.-(4,666)(4,666)Investment income5,241(141)5,100Interest expense(9,421)122(9,299)Gain on investments2,794(3)2,791Loss from continuing operations, before income tax expense (17,251)1,188(16,063)Income tax expense(873)-(873)Net loss from continuing operations(18,124)1,188(16,936)Discontinued operations:Loss from discontinued operations(29)-(29)Gain on sale of Ibis Biosciences, Inc., net of tax187,153-187,153Net income from discontinued operations, net of tax187,124-187,124Net income169,0001,188170,188Net loss attributable to noncontrolling interest in Regulus Therapeutics Inc.2,906(2,906)-Net income attributable to Isis Pharmaceuticals, Inc. common stockholders$171,906$(1,718)$170,188Basic and diluted net income (loss) per share:Net loss from continuing operations attributable to Isis Pharmaceuticals, Inc. common stockholders$(0.16)$(0.17)Net income from discontinued operations1.911.91Basic and diluted net income$1.75$1.74Shares used in computing basic and diluted net income (loss) per share97,98897,988(1)  Assuming Isis would have adopted the new accounting standard retrospectively, these are the adjustments that would have been made to Isis' 2009 Statement of Operations.Isis Pharmaceuticals, Inc.Reconciliation of GAAP to Pro Forma Basis:  Condensed Consolidated Operating Expenses and Income (Loss) From Operations(In Thousands)Three months ended,

September 30,Nine months ended,

September 30, 2010200920102009(unaudited)(unaudited)As reported operating expenses according to GAAP$37,571$37,167$114,551$105,204Excluding compensation expense related to stock options(2,960)(3,546)(9,448)(9,814)Pro forma operating expenses$34,611$33,621$105,103$95,390As reported loss from operations according to GAAP$(8,947)$(10,396)$(32,498)$(15,865)Excluding compensation expense related to stock options(2,960)(3,546)(9,448)(9,814)Pro forma loss from operations$(5,987)$(6,850)$(23,050)$(6,
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SOURCE Isis Pharmaceuticals, Inc.
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