Isis 2Q Loss Narrows, Helped By Genzyme Partnership

Isis Pharmaceuticals Inc.'s (ISIS) second-quarter loss narrowed, helped by revenue generated by its partnership with Genzyme Corp. (GENZ), as the drug-therapies developer said it remains on track to meet 2009 targets.

Isis develops drug therapies based on antisense technology, in which drugs attach themselves to strands of a molecule known as RNA to block them from producing disease-causing proteins.

Its lead drug is cholesterol fighter mipomersen, leased to Genzyme. The drug helps patients who are unable to properly metabolize bad cholesterol and face the risk of cardiovascular disease. Isis' shares were briefly hurt in May after a late-stage trial of mipomersen, while showing the drug to be effective in cutting bad cholesterol levels, suggested it might be difficult to tolerate, putting potential milestone payments in jeopardy.

Isis stands to receive at least $325 million from Genzyme under a licensing and development deal reached last year.

Isis's second-quarter loss narrowed to $2.9 million, or 3 cents a share, from $3.7 million, or 4 cents a share, a year earlier. Revenue rose 4.3% to $31 million as research-and-development revenue rose 31%.

Analysts surveyed by Thomson Reuters were expecting a 2-cent loss on revenue of $32 million.

Shares closed Wednesday at $18.41 and were inactive premarket. The stock is up 30% this year.

-By Mike Barris, Dow Jones Newswires; 212-416-2330; [e-mail]

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