Carlsbad drugmaker Ionis Pharmaceuticals Inc.’s stock is up over 26 percent despite a slight miss on earnings reported Wednesday.
The company posted revenue of $110.9 million in the third quarter, nearly in line with Wall Street expectations of $111 million to $113 million. Earnings per share came in at 6 cents, while expectations were at 7 to 8 cents.
So why the soaring stock price? Despite missing expectations, Ionis Pharma's third quarter revenue is up 126 percent from a year ago, and that the company's net income improved to a gain of $7.4 million from a loss of $36 million in the same quarter last year.
Ionis’ shares have also benefited from positive trial results for nusinersen, a therapy that could win FDA approval next year for use in patients diagnosed with spinal muscular atrophy.
In Ionis Pharma's latest financial statement, management provided an update on nusinersen and its other products in development. The company's top-line growth was mostly thanks to $96.9 million in licensing fees paid by big biotech firm Biogen that's related to nusinersen's development.
Of course, Ionis’ earnings statement comes alongside a widespread rally in biotechnology shares following the election of Donald Trump as the next U.S. president. On the campaign trail, Trump appeared more amenable to the industry than Hillary Clinton.
Ionis’ stock (Nasdaq: IONS) was trading for $39.71 at midday Wednesday, up a whopping 47 percent just since last Tuesday.