Ionis Diving Back Into the Red in 2022, but We See Its Pipeline as Significantly Undervalued

We're maintaining our $62 fair value estimate for Ionis Pharmaceuticals following solid-fourth quarter results and as the firm heads into a multiyear period of significant investment in its pipeline. Despite other RNA-targeting technology that could compete with its technology down the road, we continue to assign Ionis a narrow moat rating based on the breadth and potential of its late-stage pipeline in neurology, cardiology, and rare diseases. We also think Ionis' technology continues to improve in potency and deliverability, supporting the firm's ability to continue to compete beyond its first wave of promising drugs poised to launch in 2024-25.