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Pharmacyclics Reports Second Quarter 2013 Results

              Pharmacyclics Reports Second Quarter 2013 Results

PR Newswire

SUNNYVALE, Calif., July 31, 2013

SUNNYVALE, Calif., July 31, 2013 /PRNewswire/ -- Pharmacyclics, Inc. (the
"Company") (Nasdaq: PCYC) today reported financial results and recent
developments for its quarter ended June 30, 2013.

Financial Results for the Three and Six Months Ended June 30, 2013

Non-GAAP net income reported for the quarter ended June 30, 2013 was $19.2
million, or $0.26 and $0.25 net income per basic and diluted share,
respectively, compared to non-GAAP net loss of $15.1 million, or $0.22 net
loss per basic and diluted share for the quarter ended June 30, 2012. Non-GAAP
net loss reported for the six months ended June 30, 2013 was $9.1 million, or
$0.13 net loss per share, compared to non-GAAP net loss of $24.4 million or
$0.35 net loss per share for the six months ended June 30, 2012. See "Use of
Non-GAAP Financial Measures" below for a description of our non-GAAP measures.
Reconciliation between certain generally accepted accounting principles
("GAAP") and non-GAAP measures is provided at the end of this press release.

GAAP net income for the quarter ended June 30, 2013 was $12.4 million, or
$0.17 and $0.16 net income per basic and diluted share, respectively. This
includes stock-based compensation expense of $6.9 million. For the quarter
ended June 30, 2012, GAAP net loss was $16.9 million, or $0.24 net loss per
share. This includes stock-based compensation expense of $1.8 million. For the
six months ended June 30, 2013, GAAP net loss was $39.6 million, or $0.55 net
loss per basic and diluted share, compared to GAAP net loss of $29.7 million,
or $0.43 loss per basic and diluted share for the six months ended June 30,
2012. Included in GAAP net loss for the six months ended June 30, 2013 and
June 30, 2012 was stock-based compensation expense of $30.4 million and $5.3
million, respectively.

Revenue for the quarter ended June 30, 2013 was $54.7 million compared to $2.1
million for the quarter ended June 30, 2012. The increase in revenue was
primarily due to the Company earning a $50 million milestone payment during
the quarter ended June 30, 2013 under its collaboration and license agreement
(the "Agreement") with Janssen Biotech, Inc. and its affiliates ("Janssen").
The $50 million milestone was earned on April 11, 2013 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 leukemia (CLL)/small lymphocytic lymphoma (SLL). Revenue
for the six months ended June 30, 2013 was $57.5 million, compared to $4.1
million for the six months ended June 30, 2012.

To date, the Company has received four milestone payments from Janssen of $50
million each, totaling $200 million, under the Agreement. The Company may
receive up to an additional $625 million ($50 million for development
progress, $225 million for regulatory progress, and $350 million for
regulatory approval) 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.

GAAP operating expenses were $42.7 million for the quarter ended June 30,
2013, compared to $19.6 million for the quarter ended June 30, 2012. During
the three months ended June 30, 2013, the Company exceeded the $50 million
annual cap on the Company's share of development costs and pre-tax
commercialization losses by $20.4 million. The Company recognizes amounts
incurred in excess of the annual cap ("Excess Amounts") as a reduction to
operating expenses. For the three months ended June 30, 2013, the Company
recognized $20.4 million of Excess Amounts as a $17.4 million reduction to
research and development expense and a $3.0 million reduction to general and
administrative expense.

GAAP operating expenses were $98.5 million for the six months ended June 30,
2013, compared to $39.5 million for the six months ended June 30, 2012. For
the six months ended June 30, 2013, the Company recognized $20.4 million of
Excess Amounts as a $17.4 million reduction to research and development
expense and $3.0 million reduction to general and administrative expense.
Under the Agreement, Janssen will fund maximum Excess Amounts of $225 million,
which includes interest of $25 million. To date, the Company has recorded
Excess Amounts of $38.5 million. The Company recognizes Excess Amounts as a
reduction to operating expenses as the Company's repayment of Excess Amounts
to Janssen is contingent and would become payable only after the third
profitable calendar quarter for the product. Further, Excess Amounts shall be
reimbursable only from the Company's share of pre-tax profits (if any) after
the third profitable calendar quarter for the product.

As of June 30, 2013, the Company had cash, cash equivalents and marketable
securities of $505.0 million, compared with $317.1 million as of December 31,
2012. As previously announced on July 10, 2013, the Company submitted a New
Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for the
investigational oral Bruton's tyrosine kinase (BTK) inhibitor, ibrutinib, for
two relapsed/refractory B-cell malignancy indications: mantle cell lymphoma
(MCL) and CLL/SLL. Upon acceptance of such filing by the FDA, the Company
would be entitled to receive from Janssen $75 million in regulatory milestone
payments.

The Company expects to end 2013 in excess of $550 million in cash, cash
equivalents, marketable securities and receivables due from our collaboration
partner, which includes the $75 million of milestone payments that would be
earned upon acceptance of the filing by the FDA.

The Company expects non-GAAP net income/loss to be near break-even for the
full year ending December 31, 2013, which includes the reduction of expenses
related tothe assumption of Excess Amounts by Janssen.

"Over the past five months, we have been steadily and inexorably building the
commercial personnel infrastructure that ensures Pharmacyclics has highly
professional and competent Marketing, Medical Affairs, Drug Safety and
Clinical Sales teams. I am pleased to announce that we have completed the
hiring process and we are now integrating our new team members into our
culture and vision to ensure Pharmacyclicswill be commercial-ready on a
timely basis," said Bob Duggan, CEO & Chairman of Pharmacyclics. "We have
entered into a very exciting chapter for the company and for our ibrutinib
partner, Janssen, who has been a tremendous support in this process. Just 4
years ago we dosed our first patient with ibrutinib and since have explored
its potential in most of the B-cell malignancies with Phase II and Phase III
studies. Ibrutinib's success has been continuously evolving with three
Breakthrough Therapy Designationsannounced earlierthis year, two
publications in the prestigious New England Journal of Medicine in June and
the filing of our first NDA for ibrutinib with the Food and Drug
Administration just a few weeks back. We are making very steady progress in
our goal to advance science and drug development in the hopes of making a
significant difference for the betterment of patients with serious, unmet
healthcare needs."

Regulatory Update

Earlier this month the Company submitted its first NDA to theFDA for the
investigational oral BTK inhibitor, ibrutinib, for two relapsed/refractory
B-cell malignancy indications: MCL and CLL/ SLL. With this
submission,Pharmacyclicshas also requested Priority Review.Pharmacyclicsis
jointly developing ibrutinib withJanssen.

Further information on the implications of this filing for potential
commercialization will be provided subsequent to theFDArendering a decision
on the filing.

Corporate Update

Over the past months Pharmacyclics has steadily advanced the build out of its
Sales, Marketing and Medical Affairs Organizations. As of today, key
executives for these areas and their respective staff have been hired and have
been integrated into the Company. In addition, Pharmacyclics has hired a total
of 62 Sales Representatives for its US territories and is currently
on-boarding and training them to be ready in the event the FDA finalizes their
review of the most recently filed New Drug Application and awards a label. Our
partner Janssen already has an oncology sales organization in place. The
Market Access, Marketing, Business Analytics & Informatics andPublic
Relationsorganizations have also been established. Together with Janssen, we
nowhave a commercial team with a reach across all US regions that will be
launch ready. This is not to be interpreted as an indication of when or if the
FDA will provide us a label.

The Medical Affairs Group has also significantly grown, with four specific
functional teams now established: Medical Sciences, Medical Communications,
Medical Information, Medical Science Liaisons. Pharmacyclics has also hired
seasoned professionals to support post-marketing safety activities. We have
also bolstered our legal affairs team, now consisting of contracts, corporate
compliance, intellectual property and corporate legal to protect and advance
the corporate mission. Over the past 6 months Pharmacyclics hired a total of
220 employees, and has increased the total headcount to 415 employees as of
the end of June.

Recent Developments & Highlights

Two New England Journal of Medicine Publications
In June 2013, The New England Journal of Medicine(NEJM) published results
from two Phase II studies of ibrutinib: PCYC 1104-CA, a Phase II study
evaluating the safety and efficacy of ibrutinib monotherapy in patients with
relapsed/refractory MCL; and PCYC 1102-CA, a Phase Ib/II study examining the
safety and efficacy of ibrutinib monotherapy for the treatment of patients
with relapsed/refractory CLL/ SLL, some of whom had deletion of part of
chromosome 17 (del 17p). These data suggested ibrutinib may be effective and
generally well-tolerated in patients with relapsed/refractory MCL and in
patients with relapsed/refractory CLL/SLL. Both studies were originally
presented at the annual meeting of the American Society of Hematology (ASH) in
December 2012. Updated results from PCYC 1104-CA were presented at the
European Hematology Association (EHA) Annual Meeting in June 2013.

Conferences and Presentations in June 2013
In June, Pharmacyclics and its collaborators presented 5 oral and 6 poster
presentations on ibrutinib at three annual conferences: American Society of
Clinical Oncology (ASCO), EHA, and the International Conference on Malignant
Lymphoma (ICML). These conferences showcased updated and expanded data in
high risk CLL, relapsed or refractory MCL, and relapsed or refractory diffuse
large B-cell lymphoma (DLBCL). Also at these conferences ibrutinib data in
two new areas were presented: Waldenstrom's Macroglobulinemia (WM) and
frontline DLBCL in combination with R-CHOP (rituximab, cyclophosphamide,
doxorubicin, vincristine, and prednisone). All oral presentations made at
these conferences have been filed in Form 8-K's with the SEC.

Selected Clinical Trials Initiated with Ibrutinib Over the Last 18 Months

CLL/SLL

  oRESONATE™ (PCYC-1112) Phase III study of ibrutinib versus ofatumumab in
    patients with R/R CLL/SLL. This trial is a randomized, multi-center,
    open-label Phase III trial of ibrutinib as a monotherapy. The enrollment
    of 391 patients was completed more than two quarters ahead of schedule in
    April, 2013. The primary endpoint of this study is to demonstrate a
    clinically significant improvement in progression-free survival (PFS) when
    compared to ofatumumab. A pre-defined number of progression events will
    trigger an interim analysis. Pharmacyclics expects a read out from the
    interim analysis 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.
  oRESONATE™-17 (PCYC-1117): Phase II study of ibrutinib in 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 (ORR). This
    global study has just completed enrollment more than two quarters ahead of
    schedule. Pharmacyclics plans to announce top-line data from this study in
    the first half of 2014.
  oRESONATE™-2 (PCYC-1115): Phase III study of ibrutinib versus chlorambucil
    in frontline newly diagnosed elderly CLL/SLL patients. This trial is a
    randomized, multicenter, open-label study of ibrutinib as a monotherapy
    versus chlorambucil in patients 65 years or older with treatment naive
    CLL/SLL. The study design, whichwas granted a Special Protocol Assessment
    (SPA), is designed to demonstrate superiority of ibrutinib with the
    primary endpoint of PFS when compared to chlorambucil. The study is
    currently recruiting and Pharmacyclics plans to enroll 272 patients
    worldwide, with an enrollment completion target by the end of Q3 of 2014.
  oHELIOS (CLL3001): Phase III study of ibrutinib in combination with
    bendamustine and rituximab in patients with R/R CLL/SLL. This trial is a
    randomized, multi-center, double-blinded, placebo-controlled trial of
    ibrutinib in combination with bendamustine and rituximab versus placebo 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 PFS
    when compared to bendamustine and rituximab. This global study, conducted
    by Janssen, is recruiting and Janssen plans to enroll 580 patients
    worldwide.
  oNCI STUDY: Phase III study of ibrutinib alone compared to ibrutinib in
    combination with rituximab or compared to rituximab in combination with
    bendamustine in treatment naive older CLL patients. This trial is a
    randomized trial of ibrutinib in treating patients 65 years or older with
    previously untreated CLL and is being initiated by the National Cancer
    Institute (NCI). The primary endpoint of the study is PFS. This study is
    not yet recruiting and the NCI plans to enroll 523 patients.

MCL

  oSPARK (MCL2001): Phase II study of ibrutinib in patients with R/R MCL who
    progressed after bortezomib therapy. 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
    ORR, 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 2013.
  oRAY (MCL3001): Phase III study of ibrutinib versus temsirolimus in R/R MCL
    patients. 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 PFS. This global study, conducted by
    Janssen outside the US, is recruiting and Janssen plans to enroll 280
    patients.
  oSHINE (MCL3002): Phase III study of ibrutinib in combination with
    bendamustine and rituximab in elderly patients with newly diagnosed MCL.
    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 65 years or
    older with newly diagnosed MCL. The primary endpoint of the study is PFS.
    This global study, conducted by Janssen, is recruiting and Janssen plans
    to enroll 520 patients.
  oMCL4001: A multicenter, open label Expanded Access Program (EAP) for
    ibrutinib as a monotherapy in relapsed/refractory (R/R) MCL patients has
    been initiated in the US by Janssen. 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.

DLBCL

  oPCYC-1106: Phase II study of ibrutinib in patients with relapsed or
    refractory DLBCL. This trial is a multicenter, open-label study designed
    to assess the activity of ibrutinib in two genetically distinct subtypes
    of DLBCL, the activated B-cell (ABC) subtype and the germinal center
    B-cell (GCB) subtype. This trial is active in several US sites and
    Pharmacyclics has enrolled 70 patients with updated results most recently
    published at EHA in June 2013. In July a new cohort with ibrutinib dosed
    at 840mg in patients with non-GCB subtype DLBCL was initiated. This cohort
    will increase the enrollment target for this study to 125 patients.
  oDBL1002: Phase 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. This global,
    multi-center study, conducted by Janssen, has been fully accrued with 17
    patients and an update on the dose escalating phase of this study was
    provided at ASCO 2013.With a recommended Phase II dose established, the
    study has enrolled additional 15 patients with newly diagnosed DLBCL and
    is currently in the expansion phase.
  oDBL3001: Phase III study of ibrutinib in combination with R-CHOP
    (rituximab, cyclophosphamide, doxorubicin, vincristine, and prednisone) in
    patients with newly diagnosed non-germinal center B-cell subtype of DLBCL.
    This trial is a randomized, multi-center, double-blinded, controlled trial
    of ibrutinib plus R-CHOP versus R-CHOP in patients with newly diagnosed
    non-GCB subtype DLBCL. The primary endpoint of the study is to demonstrate
    a clinically significant improvement in event-free survival when compared
    to R-CHOP. This global study, conducted by Janssen, is not yet recruiting
    and Janssen plans to enroll 800 patients worldwide.

FL

  oFLR2002: Phase 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, is
    recruiting and Janssen plans to enroll 110 patients.

WM

  oNCI STUDY: Phase II study of ibrutinib in patients with R/R WM. This is a
    multicenter, open label study with a primary endpoint of ORR and is
    currently exploring ibrutinib administration at 420 mg in patients with WM
    who have failed at least 1 prior therapy. The study will assess the
    safety and tolerability of ibrutinib as well as progression-free survival.
    This study is sponsored by the Dana-Farber Cancer Institute and completed
    enrollment of 63 patients.

MM

  oPCYC-1111: Phase II study of ibrutinib in patients with R/R multiple
    myeloma (MM). This is a Phase II, multi-center, open-label trial designed
    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 and 840 mg in
    combination with dexamethasone and 840 mg as a single agent. Pharmacyclics
    anticipates an update on this program will be provided during the first
    half of 2014.

Conference Call

The Company will hold a conference call today at 4:30 p.m. EDT. To participate
in the conference call, please dial 1-877-303-7908 for domestic callers and
1-678-373-0875 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 1-855-859-2056 domestic callers and 1-404-537-3406 for international
callers and use the conference ID number: 23863642. 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 is an investigational agent designed to provide potent and sustained
inhibition of an enzyme called Bruton's tyrosine kinase (BTK). By inhibiting
BTK, ibrutinib blocks B-cell receptor signaling. BTK is a key mediator of at
least three critical B-cell pro-survival mechanisms occurring in parallel –
regulation of apoptosis, adhesion, and cell migration and homing. Through
these multiple signals, BTK regulation helps to direct malignant B-cells to
lymphoid tissues, thus allowing access to a micro-environment necessary for
survival.

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, Waldenstrom's macroglobulinemia and
multiple myeloma. To date, 7 Phase III trials have been initiated with
ibrutinib and a total of 31 trials are currently registered on
www.clinicaltrials.gov. Janssen and Pharmacyclics entered into 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.

Pharmacyclics 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 or future 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)
                                        Jun. 30,              Dec. 31,
                                        2013                  2012
Assets
Cash, cash equivalents and              $ 504,984             $ 317,114
marketable securities ^1
Other current assets ^2                 48,168                29,378
 Total current assets             553,152               346,492
Property and equipment, net             14,217                6,403
Other assets                            3,276                 2,234
 Total assets                     $ 570,645             $ 355,129
Liabilities and Stockholders'
Equity
Deferred revenue - current              $   7,680          $   8,139
portion
Other current liabilities               44,697                21,118
 Total current liabilities        52,377                29,257
Deferred revenue - non-current          55,605                62,562
portion
Deferred rent                           800                   784
 Total liabilities                108,782               92,603
Stockholders' equity                    461,863               262,526
 Total liabilities and            $ 570,645             $ 355,129
stockholders' equity
^1Marketable securities                 $  10,830            $   9,681
^2As of June 30, 2013 and December 31, 2012, Other current assets includes
$37.3 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        Six Months Ended
                             Jun. 30,    Jun. 30,    Jun. 30,   Jun. 30,
                             2013         2012         2013        2012
Revenue:
 License and milestone      $ 50,000     $       $  50,000  $     
revenue                                   -                       -
 Collaboration services     4,684        2,123        7,530       4,050
revenue
 Total revenue           54,684       2,123        57,530      4,050
Operating expenses*:
 Research and Development   45,300       15,385       81,084      31,213
 Less: Excess amounts
related to Research and      (17,377)     -            (17,377)    -
Development
 Research and            27,923       15,385       63,707      31,213
Development, net
 General and                17,736       4,220        37,762      8,281
Administrative
 Less: Excess amounts
related to General and       (3,006)      -            (3,006)     -
Administrative
 General and             14,730       4,220        34,756      8,281
Administrative, net
 Total operating         42,653       19,605       98,463      39,494
expenses
Income (loss) from           12,031       (17,482)     (40,933)    (35,444)
operations
Interest and other income    (23)         47           56          103
(expense), net
Income (loss) before income  12,008       (17,435)     (40,877)    (35,341)
taxes
Income tax benefit           343          529          1,317       5,612
Net income (loss)            $ 12,351     $ (16,906)   $ (39,560)  $ (29,729)
Net income (loss) per
share:
 Basic                    $   0.17  $          $         $  
                                          (0.24)      (0.55)     (0.43)
 Diluted                  $   0.16  $          $         $  
                                          (0.24)      (0.55)     (0.43)
Weighted average shares
used to compute
net income (loss) per
share:
 Basic                    72,953       69,081       71,948      68,965
 Diluted                  77,194       69,081       71,948      68,965
* Includes share-based
compensation as follows:
Research and development     $  3,760   $   1,013  $  14,940  $   3,708
General and administrative   3,101        835          15,499      1,625
                             $  6,861   $   1,848  $  30,439  $   5,333





Reconciliation of Selected GAAP Measures to Non-GAAP Measures ^(1)
(unaudited; in thousands, except per share data)
                              Three Months Ended       Six Months Ended
                              Jun. 30,  Jun. 30,       Jun. 30,     Jun. 30,
                              2013      2012           2013         2012
GAAP net income (loss)        $ 12,351  $ (16,906)     $ (39,560)   $ (29,729)
Adjustments:
 Research and Development  3,760     1,013          14,940       3,708
share-based compensation (2)
 General and
Administrative share-based    3,101     835            15,499       1,625
compensation (2)
                              6,861     1,848          30,439       5,333
Non-GAAP net income (loss)    $ 19,212  $ (15,058)     $  (9,121)  $ (24,396)
GAAP net income (loss) per    $       $   (0.24)  $          $  
share - basic                 0.17                    (0.55)      (0.43)
 Share-based compensation  0.09      $    0.02   0.42         0.08
expense
Non-GAAP net income (loss)    $       $   (0.22)  $          $  
per share - basic             0.26                    (0.13)      (0.35)
GAAP net income (loss) per    $       $   (0.24)  $          $  
share - diluted               0.16                    (0.55)      (0.43)
 Share-based compensation  0.09      0.02           0.42         0.08
expense
Non-GAAP net income (loss)    $       $   (0.22)  $          $  
per share - diluted           0.25                    (0.13)      (0.35)



    This presentation includes non-GAAP measures. Our non-GAAP measures are
(1) 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.

The non-GAAP net income/loss guidance of near break-even for the full year
ending December 31, 2013 does not include projected share-based compensation
expense for such period.

SOURCE Pharmacyclics, Inc.

Website: http://www.pharmacyclics.com
Contact: Joshua T. Brumm, Executive Vice President, Finance, 408-215-3311, or
Ramses Erdtmann, SVP Investor Relations & Administration, 408-215-3325, or
Manisha Pai, Sr. Director Public Relations & Corporate Communications,
408-215-3720, or U.S. Medical Information, Pharmacyclics, 855-ibrutinib
[(855)-427-8846], medinfo@pcyc.com