Pharmacyclics Reports First Quarter 2013 Results

               Pharmacyclics Reports First Quarter 2013 Results

PR Newswire

SUNNYVALE, Calif., May 1, 2013

SUNNYVALE, Calif., May 1, 2013 /PRNewswire/ -- Pharmacyclics, Inc. (the
"Company") (Nasdaq: PCYC) today reported financial results and recent
developments for its three months ended March 31, 2013.

Financial Results for the Three Months Ended March 31, 2013

Non-GAAP net loss reported for the quarter ended March 31, 2013 was $28.3
million, or $0.40 loss per share compared to non-GAAP net loss of $9.3
million, or $0.14 loss per share for the quarter ended March 31, 2012. See
"Use of Non-GAAP Financial Measures" below for a description of our non-GAAP
measures. Reconciliation between certain GAAP and non-GAAP measures is
provided at the end of this press release.

As reported on April 11, 2013, the Company earned a $50 million milestone
payment obligation under its collaboration and license agreement (the
"Agreement") with Janssen Biotech, Inc. and its affiliates ("Janssen") as a
result of the enrollment of a fifth patient in a study using ibrutinib
(PCI-32765) as a monotherapy versus chlorambucil in elderly patients with
newly diagnosed chronic lymphocytic lymphoma/small lymphocytic lymphoma. The
$28.3 million non-GAAP net loss for the quarter ended March 31, 2013 did not
include the $50 million milestone earned on April 11, 2013. The Company will
record the above milestone as revenue for the quarter ending June 30, 2013. As
such, the Company expects non-GAAP net income/loss to be near break-even for
the quarter ending June 30, 2013 and also for the full year ending December
31, 2013. This includes the assumption of costs by Janssen in excess of the
$50 million annual cap per calendar year ("Excess Amounts") under the
Agreement with Janssen.

The generally accepted accounting principles ("GAAP") net loss for the quarter
ended March 31, 2013 was $51.9 million, or $0.73 loss per share. This includes
stock-based compensation expense of $23.6 million. For the quarter ended March
31, 2012, GAAP net loss was $12.8 million, or $0.19 loss per share. This
includes stock-based compensation expense of $3.5 million.

The increase of the stock-based compensation expense to $23.6 million for the
three months ended March 31, 2013 compared to $3.5 million for the three
months ended March 31, 2012 was primarily related to the timing and accounting
of grants for performance-based stock options, share price appreciation and
the growth in the Company's employee base. For the remainder of 2013 the
Company expects stock-based compensation expense to average $18 million to $22
million per quarter.

GAAP operating expenses were $55.8 million for the quarter ended March 31,
2013, compared to $19.9 million for the quarter ended March 31, 2012. No
Excess Amounts were recognized as a reduction to operating expenses for the
three months ended March 31, 2013 and 2012.

As of March 31, 2013, the Company had cash, cash equivalents and marketable
securities of $511.2 million, compared with $317.1 million as of December 31,
2012. As previously announced, during the three months ended March 31, 2013,
the Company sold 2.2 million shares of its common stock in an underwritten
public offering for net proceeds of $201.0 million. The net proceeds from the
public stock offering were received during the three months ended March 31,
2013.

As previously disclosed in our earnings release for the quarter ended December
31, 2012, the Company expected to end the calendar year 2013 with cash, cash
equivalents and marketable securities of more than $225 million. With net
proceeds of $201 million from the underwritten public offering and additional
milestones expected to be earned during the calendar year, the Company now
expects to end 2013 with approximately $500 million in cash, cash equivalents,
marketable securities and receivables due from our collaboration partner.

To date, the Company has earned four milestone payments under the Agreement
with Janssen of $50 million each, totaling $200 million, including the $50
million milestone earned on April 11, 2013, which the Company expects to
collect during the quarter ended June 30, 2013. The Company may earn up to an
additional $625 million in development and regulatory milestone payments,
however, clinical development entails risks and the Company has no assurance
as to whether or when the milestone targets might be achieved.

The Agreement with Janssen includes a cost sharing arrangement for certain
development activities. In general, Janssen is responsible for approximately
60% of development costs and the Company is responsible for 40% of development
costs. The Agreement with Janssen also provides for a $50 million annual cap
of the Company's share of development costs and pre-tax commercialization
losses for each calendar year. As of March 31, 2013, the Company's total share
of collaboration costs for the 2013 calendar year to date was approximately
$24.9 million.

"This past quarter has been particularly successful for our company," said Bob
Duggan, CEO and Chairman of the Board. "We completed the enrollment of our
first Phase III trial and are well on track with our clinical programs. We
also received the third Breakthrough Therapy Designation from the FDA. Last
month at the American Association of Clinical Research we had 8 poster
presentations and 1 oral presentation. There are 5 additional oral and 6
poster presentations with clinical and pre-clinical updates planned for the
upcoming scientific conferences this summer, the American Society of Clinical
Oncology, the European Hematology Association and the International Conference
on Malignant Lymphoma. Last month we earned a milestone payment of $50 million
from our collaboration partner Janssen, for the start of our front line study
in CLL and on March 8^th we concluded a successful equity offering netting us
$201 million. Pharmacyclics remains resolute in its goal to lead in the
creation of a new era of patient friendly, body harmonious, medicinal
solutions, which are intended to improve the quality of life, increase
duration of life and address serious, unmet medical health care needs for
patients."

Conferences and Presentations in June 2013

American Society of Clinical Oncology 2013 Annual Meeting May 31-June 4, 2013

At the upcoming American Society of Clinical Oncology (ASCO) 2013 annual
meeting the company will have one oral presentation and three poster
presentations on ibrutinib. The oral presentation discusses the Phase I study
of ibrutinib combined with R-CHOP in patients with CD20-Positive B-cell
frontline NHL (DLBCL, MCL, FL). There will be a poster discussion on tumor
genomic profiling revealing mechanisms of resistance to ibrutinib in CLL
patients. From our clinical pharmacology team we will also present a poster on
pharmacokinetics of dose ranging of ibrutinib in CLL, and another poster on
describing safety data with the evaluation of electrocardiograms in CLL
patients receiving ibrutinib.

  oOral Abstract Session
    Phase Ib Study Combining Ibrutinib with Rituximab, Cyclophosphamide,
    Doxorubicin, Vincristine, and Prednisone (R-CHOP) in Patients with
    CD20-Positive B-Cell Non Hodgkin Lymphoma (NHL) Date/Time: June 01, 2013,
    1:45PM – 2:00PM, Location: E354a , Author: Dr. Anas Younes
  oPoster Discussion Session
    Use of Tumor Genomic Profiling to Reveal Mechanisms of Resistance to the
    BTK Inhibitor Ibrutinib in Chronic Lymphocytic Leukemia (CLL)
    Date/Time Poster Display: June 01, 2013, 8:00AM - 12:00PM, Location: S405
    Poster Discussion: 12:00PM - 1:00PM, Location: S406, Author: Dr. Joseph
    Buggy
  oPoster Session
    Pharmacokinetics of Ibrutinib in Patients with Chronic Lymphocytic
    Leukemia
    Date/Time: June 02, 2013, 8:00AM - 11:45AM, Location: S Hall A2, Author:
    Dr. Juthamas Sukbuntherng
  oPoster Session
    Open Label Evaluation of ECG in Patients with Chronic Lymphocytic Leukemia
    (CLL) Receiving Ibrutinib Monotherapy
    Date/Time: June 02, 2013, 8:00AM - 11:45AM, Location: S Hall A2, Author:
    Dr. David Loury

European Hematology Association 18^th Congress in Stockholm, Sweden June
13-16, 2013

At the European Hematology Association (EHA) annual congress there will be
four presentations; two oral and two poster presentations. The oral
presentations will be from the clinical trials PCYC-1106, Pharmacyclics' Phase
II study using ibrutinib as a monotherapy in patients with relapsed or
refractory (R/R) ABC sub-type of diffuse large B-cell lymphoma (DLBCL) and
from PCYC-1104, Pharmacyclics' Phase II study using ibrutinib as a monotherapy
in R/R mantle cell lymphoma (MCL) patients. Pharmacyclics will also present
non-clinical data in a poster presentation on BTK expression in multiple
myeloma (MM). There will also be a poster presentation discussing the Phase I
study of ibrutinib combined with R-CHOP in frontline NHL patients as reported
previously at ASCO in June, 2013.

  oOral Presentation
    The Bruton's Tyrosine Kinase (BTK) Inhibitor, Ibrutinib (PCI-32765), has
    Preferential Activity in the Activated B-cell-like (ABC) Subtype of
    Relapsed/Refractory (R/R) DLBCL: Interim Phase 2 Results Date/Time: June
    16, 2013, 11:30AM-11:45AM, Location: Hall A7, Author: Dr. Sven de Vos
  oOral Presentation
    Updated Interim Results of an International, Multicenter, Phase 2 Study of
    Ibrutinib in Relapsed or Refractory Mantle Cell Lymphoma
    Date/Time: June 16, 2013, 11:00AM-11:15AM, Location: Hall A7, Author: Dr.
    Simon Rule
  oPoster Presentation
    Bruton Tyrosine Kinase Expression in Multiple Myeloma
    Date/Time: June 14, 2013, 5:45PM-7:00PM, Location: Poster Hall, Author:
    Dr. Laurence Elias
  oPoster Presentation (Encore from ASCO)
    Phase 1b Study Combining Ibrutinib with Rituximab, Cyclophosphamide,
    Doxorubicin, Vincristine, and Prednisone (R-CHOP) in Patients with
    CD20-Positive B-Cell Non-Hodgkin Lymphoma (NHL)
    Date/Time: June 15, 2013, 5:45PM-7:00PM, Location: Poster Hall, Author:
    Dr. Anas Younes

International Conference on Malignant Lymphoma in Lugano, Switzerland June
19-22, 2013

At the International Conference on Malignant Lymphoma (ICML) there will be
three oral presentations and three poster presentations on ibrutinib, and one
oral presentation on abexinostat, Pharmacyclics' HDAC inhibitor. One oral
presentation in the plenary session will show results using ibrutinib as a
monotherapy in R/R CLL patients with deletion 17p as previously reported at
AACR earlier this year. One oral presentation will cover the trial results
using ibrutinib as a monotherapy in R/R Waldenstrom Macroglobulinemia (WM)
patients. The other oral presentation will show the Phase I results using
R-CHOP plus ibrutinib in frontline NHL patients similar to the data that will
be presented at ASCO and EHA in June, 2013. Two posters are updates from the
MD Anderson trial using ibrutinib plus rituximab in high risk CLL patients. An
additional poster will show updated results from Pharmacyclics' trial
PCYC-1104 with similar data from the oral presentation at EHA in June, 2013.
An additional oral presentation will show trial data using the HDAC inhibitor
abexinostat in patients with R/R follicular lymphoma.

  oOral Presentation in Plenary Session (Encore from AACR)
    Single Agent Ibrutinib (PCI-32765) is Highly Effective in Chronic
    Lymphocytic Leukemia (CLL) Patients with 17p Deletion
    Date/Time: June 19, 2013, 2:40PM – 3:00PM, Locations: Room A, B and
    Marquee Parco Ciani, Author: Dr. Adrian Wiestner
  oOral Presentation
    A Prospective, Multicenter, Phase II Study of the Bruton's Tyrosine Kinase
    Inhibitor Ibrutinib in Patients with Relapsed and Refractory Waldenstrom's
    Macroglobulinemia
    Date/Time: June 20, 2013, 4:20PM - 4:35PM, Location: Room A and Marquee,
    Author: Dr. Steven Treon
  oOral Presentation (Encore from ASCO)
    Phase Ib Study Combining Ibrutinib with Rituximab, Cyclophosphamide,
    Doxorubicin, Vincristine, and Prednisone (R-CHOP) in Patients with
    CD20-Positive B-Cell Non-Hodgkin Lymphoma
    Date/Time: June 20, 2013, 4:50PM – 5:05PM, Location: Room A and Marquee,
    Author: Dr. Anas Younes
  oPoster Presentation
    Efficacy and Safety of Ibrutinib in Combination with Rituximab (iR) in
    High-Risk CLL Patients
    Date/Time: June 19, 2013, 12:00PM - 6:30PM, June 20, and June 21, 2013,
    8:30AM - 6:30PM, Location: Marquee Parco Ciani, Author: Dr. Jan Burger
  oPoster Presentation
    Cytokine Quantification in High-Risk Chronic Lymphocytic Leukemia (CLL)
    Patients Treated with Ibrutinib and Rituximab
    Date/Time: June 19, 2013, 12:00PM - 6:30PM, June 20, and June 21, 2013,
    8:30AM - 6:30PM, Location: Marquee Parco Ciani, Author: Dr. Iris de Weerdt
  oPoster Presentation (Encore from EHA)
    Updated Interim Results of an International Multicenter, Phase 2 Study of
    Ibrutinib (PCI-32765) in Relapsed or Refractory (R/R) Mantle Cell Lymphoma
    (MCL)
    Date/Time: June 19, 2013, 12:00PM - 6:30PM, June 20, and June 21, 2013,
    8:30AM - 6:30PM, Location: Marquee Parco Ciani, Author: Dr. Michael Wang
  oOral Presentation
    The Pan-Histone Deacetylase Inhibitor (HDACi) Abexinostat (PCI-24781):
    Significant Clinical Activity in Relapsed/Refractory Follicular Lymphoma
    (FL) in a Multicenter Phase II Study
    Date/Time: June 21, 2013, 10:00AM – 10:15AM, Location: Room A and Marquee,
    Author: Dr. Andrew Evens

Recent Developments & Highlights

Three Breakthrough Therapy Designations

The U.S. Food and Drug Administration (FDA) granted three Breakthrough Therapy
Designations for the investigational oral agent ibrutinib. These include
ibrutinib used as a monotherapy in patients with R/R MCL, in patients with WM
and in patients with CLL who have a deletion of chromosome 17p.

The Breakthrough Therapy Designation is intended to expedite the development
and review of a potential new drug for serious or life-threatening diseases
where "preliminary clinical evidence indicates that the drug may demonstrate
substantial improvement over existing therapies on one or more clinically
significant endpoints, such as substantial treatment effects observed early in
clinical development." The designation of a drug as a Breakthrough Therapy was
enacted as part of the 2012 Food and Drug Administration Safety and Innovation
Act. Pharmacyclics, together with Janssen, is working with the FDA to
determine the implications of this Breakthrough Therapy Designation to the
ongoing and planned development and the filing requirements for the use of
ibrutinib in patients. At this time Pharmacyclics is targeting to submit the
MCL filing before the end of the third quarter 2013. Pharmacyclics anticipates
to provide guidance prior to year end on the WM and CLL with deletion 17p
filing timelines after further discussions with the FDA.

The FDA Breakthrough Therapy Designations for ibrutinib were based on data
from clinical and pre-clinical studies. Ibrutinib has the potential to improve
the outcome in these serious and life-threatening diseases which have a poor
prognosis. The company and its collaboration partner, Janssen, have designed
and are currently executing a development program for ibrutinib in each of
these indications.

Comprehensive Pre-Clinical Research and Clinical Development

To broaden our understanding of ibrutinib, Pharmacyclics has performed
research into mechanisms of action both in its own research department, and
through collaborations with leading universities and clinical centers. Over
the past 3 years, Pharmacyclics' research department has established and
maintained 47 collaborations with academic investigators at universities or
clinical centers. This broad-reaching collaborative effort has resulted in 40
preclinical abstracts presented at scientific congresses, and 15 original
peer-reviewed scientific manuscripts in leading scientific journals, plus 17
review articles and commentaries in the literature. Most recently 8
presentations were made at the American Association for Cancer Research in
April, where ibrutinib was evaluated preclinically in various disease
settings.

Today over 1300 patients have been dosed with ibrutinib in company sponsored
trials. Together with our collaboration partner Janssen, Pharmacyclics has
engaged upwards of approximately 250 clinical sites, using ibrutinib in CLL,
and additionally over 100 clinical sites engaged for the use of ibrutinib in
MCL. These numbers are continuously growing as new studies are being initiated
within the overall clinical development program. As of today there are over 28
studies registered with the U.S. National Institutes of Health. Five of these
studies are Phase III trials, which each enrolling approximately 300-600
patients. Several of the trials in our clinical program are sponsored by the
National Cancer Institute or other medical centers. To date ibrutinib is being
clinically advanced in over 25 countries, which include the major population
regions: U.S., Europe, Asia Pacific and Latin America.

Phase II / III / IV Clinical Trials Initiated with Ibrutinib Over the Last 12
Months

  oA multicenter, open label Expanded Access Program for ibrutinib in R/R MCL
    patients (MCL4001) is being initiated in the US by Janssen. In the time
    before a potential U.S. marketing approval, Pharmacyclics and Janssen will
    strive to provide early access to ibrutinib under an Expanded Access
    Program (EAP). EAPs are clinical studies allowed under certain
    circumstances by the FDA. They are designed to provide a mechanism for
    access to an investigational drug to treat patients with a serious or
    immediately life-threatening diseases or conditions until the time of an
    anticipated U.S. marketing approval. Further information about this
    program can be found on www.clinicaltrials.gov.
  oPhase III study of ibrutinib versus ofatumumab in patients with R/R
    CLL/SLL, RESONATE™. This trial is a randomized, multi-center, open-label
    Phase III trial of ibrutinib as a monotherapy. The target enrollment of
    350 patients was achieved on April 3, 2013 and the study was closed for
    further enrollment on April 18, 2013 with an additional 41 patients
    enrolled at that time. The primary endpoint of this study is to
    demonstrate a clinically significant improvement in progression-free
    survival when compared to ofatumumab. A pre-defined number of progression
    events will trigger an interim analysis. A read out from the interim
    analysis is expected during Q1 of 2014. If the treatment effect of
    ibrutinib in comparison to ofatumumab is deemed statistically favorable by
    an independent review committee, a discussion with the FDA and other
    health authorities for a potential early filing may take place.
  oPhase III study of ibrutinib versus chlorambucil in frontline newly
    diagnosed elderly CLL/SLL patients, RESONATE™-2. This trial is a
    randomized, multicenter, open-label study of ibrutinib as a monotherapy
    versus chlorambucil in patients 65 years or older with treatment naïve
    CLL/SLL. The study design was granted a Special Protocol Assessment (SPA),
    designed to demonstrate superiority of ibrutinib with the primary endpoint
    of progression-free survival when compared to chlorambucil. This global
    study enrolled its first patient at the end of Q1 of 2013. Pharmacyclics
    plans to enroll 272 patients worldwide and anticipates enrollment for this
    study to be completed by the end of Q3 of 2014.
  oPhase III study of ibrutinib in combination with bendamustine and
    rituximab in patients with R/R CLL/SLL, HELIOS (CLL3001). This trial is a
    randomized, multi-center, double blinded, placebo controlled trial of
    ibrutinib in combination with bendamustine and rituximab in R/R CLL/SLL
    patients who received at least one line of prior systemic therapy. The
    primary endpoint of the study is to demonstrate a clinically significant
    improvement in progression-free survival when compared to bendamustine and
    rituximab. This global study, conducted by Janssen, is open and Janssen
    plans to enroll 580 patients worldwide.
  oPhase II study, RESONATE™-17, which is a single-arm, open-label,
    multi-center trial using ibrutinib as a monotherapy in patients who have
    deletion 17p and who did not respond to or relapsed after at least one
    prior treatment (a high unmet need population). The primary endpoint of
    the study is the overall response rate. This global study is open and
    Pharmacyclics plans to enroll 111 patients worldwide. The Company plans to
    complete enrollment for this study before year end 2013.
  oPhase III study of ibrutinib versus temsirolimus in R/R MCL patients, RAY
    (MCL3001). This trial is a randomized, multi-center, open-label trial of
    ibrutinib as a monotherapy versus temsirolimus in R/R MCL patients who
    received at least one prior rituximab-containing chemotherapy regimen. The
    primary endpoint of the study is progression-free-survival when compared
    to temsirolimus. This global study, conducted by Janssen outside the US,
    is open and Janssen plans to enroll 280 patients.
  oPhase III study of ibrutinib in combination with bendamustine and
    rituximab in patients with newly diagnosed MCL, SHINE (MCL3002). This
    trial is a randomized, multi-center, double-blinded, placebo-controlled
    trial of ibrutinib plus bendamustine and rituximab versus placebo plus
    bendamustine and rituximab in patients with newly diagnosed MCL. The
    primary endpoint of the study is progression-free-survival when compared
    to bendamustine and rituximab. Janssen plans to enroll 520 patients in
    this study.
  oPhase II study of ibrutinib in patients with R/R MCL who progress after
    bortezomib therapy, SPARK (MCL2001). This is a single-arm, multi-center
    trial of ibrutinib as a monotherapy in R/R MCL patients who received at
    least one prior rituximab-containing chemotherapy regimen and who
    progressed after bortezomib therapy. The primary endpoint of the study is
    overall response rate, which is scheduled to be evaluated 6 months from
    the completion of enrollment. This global study, conducted by Janssen has
    completed enrollment of the planned 110 patients in April of 2013.
  oPhase Ib dose escalating study of ibrutinib in combination with R-CHOP in
    patients with newly diagnosed CD20 positive B-cell Non Hodgkin Lymphoma
    (DLBCL, MCL, FL). The purpose of this study is to identify a safe and
    tolerable dose of ibrutinib in combination with R-CHOP. With a recommended
    Phase II dose established, the study is currently in the expansion phase
    in patients with newly diagnosed DLBCL. This global, multi-center study,
    conducted by Janssen, has been fully accrued. An update on the dose
    escalating phase of this study will be provided at ASCO, 2013.
  oPhase II study of ibrutinib in patients with R/R MM. This is a Phase II,
    multi-center, open-label trial designed trial to assess the safety and
    efficacy of ibrutinib single agent and in combination with dexamethasone
    in patients with R/R MM. This study is conducted by Pharmacyclics and is
    currently exploring ibrutinib administration at 560 mg in combination with
    dexamethasone. Two further cohorts are planned to be explored; 840 mg with
    dexamethasone and 840 mg as a single agent. Pharmacyclics anticipates an
    update on this program will be provided by year end 2013.
  oPhase II study of ibrutinib in patients with R/R follicular lymphoma (FL).
    This is a multi-center, global study of ibrutinib in patients with
    chemoimmunotherapy-resistant FL, whose disease has relapsed from at least
    2 prior lines of therapy, including at least 1 rituximab combination
    chemotherapy regimen. The primary endpoint of this study is objective
    response rate. This global study, conducted by Janssen, was opened in Q1
    of 2013 and Janssen plans to enroll 110 patients.

Conference Call and further Corporate Updates

The Company will hold a conference call today at 4:30 p.m. EDT. To participate
in the conference call, please dial 1-877-407-0778 for domestic callers and
1-201-689-8565 for international callers. To access the live audio broadcast
or the subsequent archived recording, log on to
http://ir.pharmacyclics.com/events.cfm. To access a replay of the call please
dial 1-877-660-6853 domestic callers and 1-201-612-7415 for international
callers and use the conference ID number: 413317. The archived version of the
webcast and conference call will be available for 30 days on the Investor
Relations section of the company's Web site at http://www.pharmacyclics.com.

About Ibrutinib

Ibrutinib was designed to specifically target and selectively inhibit an
enzyme called Bruton tyrosine kinase (BTK). BTK is a key mediator of at least
three critical B-cell pro-survival mechanisms occurring in parallel –
regulation of apoptosis, cell adhesion, and cell migration and homing.

The effectiveness of ibrutinib alone or in combination with other treatments
is being studied in several B-cell malignancies, including chronic lymphocytic
leukemia/small lymphocytic lymphoma, mantle cell lymphoma, diffuse large
B-cell lymphoma, follicular lymphoma, Waldenström's macroglobulinemia and
multiple myeloma. To date 5 Phase III trials have been initiated with
ibrutinib and a total of 28 trials are currently registered on
www.clinicaltrials.gov. Janssen Biotech, Inc. and Pharmacyclics entered a
collaboration and license agreement in December 2011 to co-develop and
co-commercialize ibrutinib.

About Pharmacyclics

Pharmacyclics is a clinical-stage biopharmaceutical company focused on
developing and commercializing innovative small-molecule drugs for the
treatment of cancer and immune mediated diseases. Our mission and goal is to
build a viable biopharmaceutical company that designs, develops and
commercializes novel therapies intended to improve quality of life, increase
duration of life and resolve serious unmet medical healthcare needs; and to
identify promising product candidates based on scientific development and
administrational expertise, develop our products in a rapid, cost-efficient
manner and pursue commercialization and/or development partners when and where
appropriate.

Presently, Pharmacyclics has three product candidates in clinical development
and several preclinical molecules in lead optimization. The Company is
committed to high standards of ethics, scientific rigor, and operational
efficiency as it moves each of these programs to viable commercialization.

The Company is headquartered in Sunnyvale, California and is listed on NASDAQ
under the symbol PCYC. To learn more about how Pharmacyclics advances science
to improve human healthcare visit us at http://www.pharmacyclics.com.

Use of Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, including operating
expenses and other expenses adjusted to exclude certain non-cash expenses.
These measures are not in accordance with, or an alternative to, generally
accepted accounting principles, or GAAP, and may be different from non-GAAP
financial measures used by other companies. The items included in GAAP
presentations but excluded for purposes of determining non-GAAP financial
measures for the periods presented in this press release are employee related
non-cash expenses. The Company believes the presentation of non-GAAP financial
measures provides useful information to management and investors regarding
various financial and business trends relating to our financial condition and
results of operations. When GAAP financial measures are viewed in conjunction
with non-GAAP financial measures, investors are provided with a more
meaningful understanding of our ongoing operating performance. In addition,
these non-GAAP financial measures are among those indicators the Company uses
as a basis for evaluating operational performance, allocating resources and
planning and forecasting future periods. Non-GAAP financial measures are not
intended to be considered in isolation or as a substitute for GAAP financial
measures. To the extent this release contains historical non-GAAP financial
measures, the Company has also provided corresponding GAAP financial measures
for comparative purposes. Reconciliation between certain GAAP and non-GAAP
measures is provided below.

NOTE: This announcement may contain forward-looking statements made in
reliance upon the safe harbor provisions of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended, including statements, among others, relating to our future capital
requirements, including our expected liquidity position and timing of the
receipt of certain milestone payments, and the sufficiency of our current
assets to meet these requirements, our future results of operations, our
expectations for and timing of ongoing or future clinical trials and
regulatory approvals for any of our product candidates, and our plans,
objectives, expectations and intentions. Because these statements apply to
future events, they are subject to risks and uncertainties. When used in this
announcement, the words "anticipate", "believe", "estimate", "expect",
"expectation", "goal", "should", "would", "project", "plan", "predict",
"intend", "target" and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements are based on
information currently available to us and are subject to a number of risks,
uncertainties and other factors that could cause our actual results,
performance, expected liquidity or achievements to differ materially from
those projected in, or implied by, these forward-looking statements. Factors
that may cause such a difference include, without limitation, our need for
substantial additional financing and the availability and terms of any such
financing, the safety and/or efficacy results of clinical trials of our
product candidates, our failure to obtain regulatory approvals or comply with
ongoing governmental regulation, our ability to commercialize, manufacture and
achieve market acceptance of any of our product candidates, for which we rely
heavily on collaboration with third parties, and our ability to protect and
enforce our intellectual property rights and to operate without infringing
upon the proprietary rights of third parties. Although we believe that the
expectations reflected in the forward-looking statements are reasonable, we
cannot guarantee future results, performance or achievements and no assurance
can be given that the actual results will be consistent with these
forward-looking statements. For more information about the risks and
uncertainties that may affect our results, please see the Risk Factors section
of our filings with the Securities and Exchange Commission, including our
transition report on Form 10-K for the six month period ended December 31,
2012 and quarterly reports on Form 10-Q. We do not intend to update any of the
forward-looking statements after the date of this announcement to conform
these statements to actual results, to changes in management's expectations or
otherwise, except as may be required by law.



Pharmacyclics, Inc.

Condensed Consolidated Balance Sheets

(unaudited; in thousands)
                                Mar. 31,                   Dec. 31,
                                2013                       2012
Assets
Cash, cash equivalents and      $               $        
marketable securities ^1          511,247                    317,114
Other current assets ^2         21,416                     29,378
 Total current assets     532,663                    346,492
Property and equipment, net     9,478                      6,403
Other assets                    3,020                      2,234
 Total assets             $               $        
                                  545,161                    355,129
Liabilities and Stockholders'
Equity
Deferred revenue - current      $               $        
portion                              8,036                  
                                                           8,139
Other current liabilities       39,353                     21,118
 Total current            47,389                     29,257
liabilities
Deferred revenue - non-current  59,879                     62,562
portion
Deferred rent                   783                        784
 Total liabilities        108,051                    92,603
Stockholders' equity            437,110                    262,526
 Total liabilities and    $               $        
stockholders' equity              545,161                    355,129
                                $               $        
^1 Marketable securities             8,721                  
                                                           9,681
^2 As of March 31, 2013 and December 31, 2012, Other current assets includes
$17.1 million and $26.6 million, respectively, due to the Company from
Janssen under the collaboration and license agreement.

Pharmacyclics, Inc.

Condensed Consolidated Statements of Operations
(unaudited; in thousands, except per share data)
                                     Three Months Ended
                                     Mar. 31,               Mar. 31,
                                     2013                   2012
Revenue:
 License and milestone revenue      $          -  $        -
 Collaboration services revenue     2,846                  1,927
 Total revenue                   2,846                  1,927
Operating expenses*:
 Research and Development           35,784                 15,828
 General and Administrative         20,026                 4,061
 Total operating expenses        55,810                 19,889
Loss from operations                 (52,964)               (17,962)
Interest and other income, net       79                     56
Loss before income taxes             (52,885)               (17,906)
Income tax benefit                   974                    5,083
Net loss                             $    (51,911)      $   (12,823)
Net loss per share:
 Basic                            $       (0.73)   $     (0.19)
 Diluted                          $       (0.73)   $     (0.19)
Weighted average shares used to
compute
net loss per share:
 Basic                            70,933                 68,848
 Diluted                          70,933                 68,848
* Includes stock-based compensation
as follows:
Research and development             $     11,180      $     2,695
General and administrative           12,398                 790
                                     $     23,578      $     3,485



Reconciliation of Selected GAAP Measures to Non-GAAP Measures ^(1)

(unaudited; in thousands, except per share data)
                                         Three Months Ended
                                         Mar. 31,           Mar. 31,
                                         2013               2012
GAAP net loss                            $            $     (12,823)
                                         (51,911)
Adjustments:
 Research and Development stock-based 11,180             2,695
compensation (2)
 General and Administrative           12,398             790
stock-based compensation (2)
                                         23,578             3,485
Non-GAAP net loss                        $            $     
                                         (28,333)           (9,338)
GAAP net loss per share - basic          $          $      
                                         (0.73)            (0.19)
 Stock-based compensation expense     0.33               0.05
Non-GAAP net loss per share - basic      $          $      
                                         (0.40)            (0.14)
GAAP net loss per share - diluted        $          $      
                                         (0.73)            (0.19)
 Stock-based compensation expense     0.33               0.05
Non-GAAP net loss per share - diluted    $          $      
                                         (0.40)            (0.14)

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are
not meant to be considered in isolation or as a substitute for comparable GAAP
measures and should be read only in conjunction with our financial statements
prepared in accordance with GAAP.
(2) All stock-based compensation was excluded for the non-GAAP analysis. 



SOURCE Pharmacyclics, Inc.

Website: http://www.pharmacyclics.com
Contact: Joshua T. Brumm, Executive Vice President, Finance, 408-215-3311;
Ramses Erdtmann, SVP Investor Relations & Administration, 408-215-3325