Pharmacyclics Reports Third Quarter 2013 Results

               Pharmacyclics Reports Third Quarter 2013 Results

PR Newswire

SUNNYVALE, Calif., Nov. 7, 2013

SUNNYVALE, Calif., Nov. 7, 2013 /PRNewswire/ -- Pharmacyclics, Inc. (the
"Company") (Nasdaq: PCYC) today reported financial results and recent
developments for the quarter ended September 30, 2013.

Financial Results for the Three and Nine Months Ended September 30, 2013

Revenue for the quarter ended September 30, 2013 was $79.1 million compared to
$54.7 million for the quarter ended June 30, 2013 and $102.7 million for the
quarter ended September 30, 2012. Included in revenue for the three months
ended September 30, 2013 was $75 million of regulatory milestones earned by
the Company under its collaboration and license agreement (the "Agreement")
with Janssen Biotech, Inc. and its affiliates ("Janssen"). As announced on
August 29, 2013, the U.S. Food and Drug Administration (FDA) accepted the
Company's New Drug Application (NDA) filing for ibrutinib, for two B-cell
malignancy indications: previously treated mantle cell lymphoma (MCL) and
previously treated chronic lymphocytic leukemia (CLL)/small lymphocytic
lymphoma (SLL). Revenue for the quarters ended June 30, 2013 and September 30,
2012 consisted primarily of license and milestone revenue due to development
milestones earned under the Agreement.

Revenue for the nine months ended September 30, 2013 was $136.6 million,
compared to $106.7 million for the nine months ended September 30, 2012. The
increase in revenue was primarily due to the $75 million of regulatory
milestones earned under the Agreement upon the FDA's acceptance for filing of
the Company's NDA for ibrutinib during the nine months ended September 30,
2013.

Non-GAAP net income reported for the quarter ended September 30, 2013 was
$52.5 million, or $0.72 and $0.68 net income per basic and diluted share,
respectively, compared to non-GAAP net income of $19.2 million, or $0.26 and
$0.25 net income per basic and diluted share, respectively for the quarter
ended June 30, 2013. Non-GAAP net income for the quarter ended September 30,
2012 was $78.8 million, or $1.13 and $1.06 net income per basic and diluted
share, respectively. Non-GAAP net income reported for the nine months ended
September 30, 2013 was $43.3 million, or $0.60 and $0.57 net income per basic
and diluted share, respectively, compared to non-GAAP net income of $54.4
million or $0.79 and $0.74 net income per basic and diluted share,
respectively, for the nine months ended September 30, 2012. See "Use of
Non-GAAP Financial Measures" below for a description of our non-GAAP measures.
A 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 September 30, 2013 was $42.3 million, or
$0.58 and $0.55 net income per basic and diluted share, respectively, compared
to GAAP net income of $12.4 million, or $0.17 and $0.16 net income per basic
and diluted share, respectively, for the quarter ended June 30, 2013. For the
quarter ended September 30, 2012, GAAP net income was $75.6 million, or $1.09
and $1.02 net income per basic and diluted share, respectively. For the nine
months ended September 30, 2013, GAAP net income was $2.8 million, or $0.04
net income per basic and diluted share, compared to GAAP net income of $45.9
million, or $0.66 and $0.62 net income per basic and diluted share,
respectively, for the nine months ended September 30, 2012. Included in GAAP
net income for the nine months ended September 30, 2013 and September 30, 2012
was stock-based compensation expense of $40.6 million and $8.5 million,
respectively.

To date, the Company has earned milestone payments of $275 million under the
Agreement. In addition to the $75 million, representing regulatory milestones
earned under the Agreement during the three months ended September 30, 2013,
the Company also earned four development milestone payments from Janssen of
$50 million each, totaling $200 million. The Company may receive up to an
additional $550 million ($50 million for development progress, $150 million
for regulatory progress and $350 million for approval) in development,
regulatory and approval 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 $25.7 million for the quarter ended September 30,
2013, compared to $42.7 million for the quarter ended June 30, 2013 and $23.9
million for the quarter ended September 30, 2012. During the three months
ended June 30, 2013, the Company exceeded the $50 million annual cap on its
share of development costs under the Agreement. As such, all of the Company's
share of development and commercial costs chargeable to the collaboration
during the quarter ended September 30, 2013 represents amounts incurred in
excess of the annual cap ("Excess Amounts"). The Company recognizes Excess
Amounts as a reduction to operating expenses. For the quarter ended September
30, 2013, the Company recognized $45.5 million of Excess Amounts as a
reduction to operating expenses. There were no Excess Amounts recognized for
the quarter ended September 30, 2012. Of the Excess Amounts recognized for the
quarter ended September 30, 2013, $34.1 million was recorded as a reduction to
research and development expenses and $11.4 million was recorded as a
reduction to general and administrative expenses.

GAAP operating expenses were $124.1 million for the nine months ended
September 30, 2013, compared to $63.4 million for the nine months ended
September 30, 2012. During the nine months ended September 30, 2013, the
Company recognized $65.9 million of Excess Amounts as a reduction to operating
expenses. There were no Excess Amounts recognized for the nine months ended
September 30, 2012. Of the Excess Amounts recognized for the nine months ended
September 30, 2013, $51.5 million was recorded as a reduction to research and
development expenses and $14.4 million was recorded as a reduction to general
and administrative expenses.

Under the Agreement, Janssen will fund maximum Excess Amounts of $200 million
and $25 million of interest thereon. To date, the Company has recorded Excess
Amounts amounting to $84.0 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 September 30, 2013, the Company had cash, cash equivalents and
marketable securities of $560.1 million, compared with $317.1 million as of
December 31, 2012.

As of September 30, 2013, cash, cash equivalents, marketable securities and
accounts receivable from Janssen totaled approximately $612.3 million. The
Company now expects to end calendar year 2013 in excess of $600 million in
cash, cash equivalents, marketable securities and receivables due from
Janssen.

With the progress and achievements to date, the Company expects to be
profitable on a GAAP basis for the quarter and year ending December 31, 2013.

"Team Pharmacyclics has consistently improved enrollment and data submission
timelines for our CLL and MCL studies over the past years. Often the clinical
accomplishments are ahead of our internal expectations," said Bob Duggan, CEO
and Chairman of the Board."Most recently we achieved an important milestone
with ibrutinib's drug application now being submitted to the European
authorities. Together with Janssen, our partner, we are working towards a
broad clinical advancement of ibrutinib and have now focused in on making the
product commercially available in all major markets around the world. Over the
next several quarters, we are anticipating additional clinical and regulatory
progress. We are on our way to becoming a true ally for patients and
physicians, addressing serious, unmet medical health care needs for patients."

Regulatory and Clinical Update

To date, over 2300 patients have been treated in company sponsored trials,
over 800 principal investigators have been involved in the conduct of our
clinical trials in 37 countries around the globe. Clinical trials are active
in all regions including US, Europe, Asia Pacific, Asia, and Latin America.
Currently there are eight Phase III clinical trials conducted with ibrutinib
and a total of 35 trials are currently registered on www.clinicaltrials.gov.

On October 30, Janssen announced it submitted a Marketing Authorization
Application (MAA) to the European Medicines Agency (EMA) for the use of
ibrutinib in the treatment of adult patients with R/R CLL/SLL or R/R MCL, two
forms of blood cancer. The EMA filings follow the New Drug Application
submission of ibrutinib to the U.S. Food and Drug Administration which was
accepted by the agency on August 27, 2013, for its use in the treatment of
patients with R/R CLL/SLL or R/R MCL.

Oral Presentations at ASH (December 7-10) for ibrutinib

Ten Oral Presentations and eleven Poster Presentations for ibrutinib have been
accepted at theAmerican Society of Hematology(ASH) Annual Meeting in New
Orleans, LA(December 7-10, 2013). These abstracts were published today on the
ASH website atwww.hematology.orgat approximately9:00 a.m. ET. Clinical
presentations scheduled during the meeting in December will provide further
updates to these abstracts regarding the efficacy and safety of ibrutinib,
particularly in chronic lymphocytic leukemia/small lymphocytic lymphoma,
Waldenstrom's macroglobulinemia and non-Hodgkin lymphoma.

Chronic Lymphocytic Leukemia/Small Lymphocytic Lymphoma Oral Presentations:

Title: Ibrutinib in combination with rituximab (iR) is well tolerated and
induces a high rate of durable remissions in patients with high-risk Chronic
Lymphocytic Leukemia (CLL): new, updated results of a Phase II trial in 40
patients
Session: 642. CLL: Therapy, excluding Transplantation: Clinical Trials of B
Cell Receptor Signaling Inhibitors
Date: Monday, December 9, 2013
Presentation Time: 5:00 PM
Location: Ernest N. Morial Convention Center, 295-296
Presenter: Burger

Title: Ibrutinib in Combination with Bendamustine and Rituximab is Active and
Tolerable in Patients with Relapsed/Refractory CLL/SLL: Final Results of a
Phase 1b Study
Session: CLL: Therapy, excluding Transplantation: Chemoimmunotherapy Clinical
Trials
Date: Monday, December 9, 2013 Session Time: 2:45 PM - 4:15 PM
Presentation Time: 3:15 PM
Location: Ernest N. Morial Convention Center, 220-222
Presenter: Brown

Title: Clonal evolution in patients with chronic lymphocytic leukemia
developing resistance to BTK inhibition
Session: 641. CLL: Biology and Pathophysiology, excluding Therapy: Molecular
Mechanisms of CLL and Genomic Alterations in CLL Pathogenesis
Date: Tuesday, December 10, 2013
Presentation Time: 7:45 AM
Location: Ernest N. Morial Convention Center, 288-290
Presenter: Burger

Title: Single agent Ibrutinib (PCI-32765) achieves equally good and durable
responses in chronic lymphocytic leukemia (CLL) patients with and without
deletion 17p
Session: 642. CLL: Therapy, excluding Transplantation: Clinical Trials of B
Cell Receptor Signaling Inhibitors
Date: Monday, December 9, 2013
Presentation Time: 4:30 PM
Location: Ernest N. Morial Convention Center, 295-296
Presenter: Farooqui

Title: Ibrutinib inhibits B-cell adhesion and causes an efflux of chronic
lymphocytic leukemia cells from the tissue microenvironment into the blood
leading to a transient treatment-induced lymphocytosis
Session: 642. CLL: Therapy, excluding Transplantation
Date: Monday, December 9, 2013
Presentation Time: 4:45 PM
Presenter: Mustafa

Title: Effective inhibition of tumor microenvironment interactions in CLL
patients treated with the BTK inhibitor ibrutinib result in sustained
inhibition of tumor proliferation and survival pathways
Session: 641. CLL: Biology and Pathophysiology, excluding Therapy
Date: Sunday, December 8, 2013
Presentation Time: 5:45 PM
Location: Ernest N. Morial Convention Center, 288-290
Presenter: Herman

Title: In-vivo effects of ibrutinib on the migration of chronic lymphocytic
leukemia cells differ between patients and reduce the ability of the bone
marrow microenvironment to attract the tumor cells
Session: 604. Molecular Pharmacology, Drug Resistance
Date: Monday, December 9, 2013
Presentation Time: 5:15 PM
Location: Ernest N. Morial Convention Center, 275-277
Presenter: Herman

Non Hodgkin Lymphoma Oral Presentations:

Title: Combining Ibrutinib With Rituximab, Cyclophosphamide, Doxorubicin,
Vincristine, and Prednisone (R-CHOP): Updated Results From a Phase 1b Study in
Patients With CD20-Positive B-Cell non-Hodgkin's lymphoma
Session: 624. Lymphoma: Therapy with Biological Agents, Excluding Pre-Clinical
Models: Aggressive Lymphomas
Date: Tuesday, December 10, 2013
Presentation Time: 8:45 AM
Location: Ernest N. Morial Convention Center, La Nouvelle Ballroom AB
Presenter: Younes

Waldenstrom's Macroglobulinemia Oral Presentations:

Title: A Prospective Multicenter Study of the Bruton's Tyrosine Kinase
Inhibitor Ibrutinib in Patients with Relapsed or Refractory Waldenstrom's
Macroglobulinemia
Session: 624.Lymphoma: Therapy with Biological Agents, Excluding Pre-Clinical
Models: Novel Therapies for Indolent Lymphomas
Date: Monday, December 9, 2013
Presentation Time: 8:00 AM
Location: Ernest N. Morial Convention Center, La Nouvelle Ballroom AB
Presenter: Treon

Other Ibrutinib Oral Presentations:

Title: Ibrutinib (PCI-32765) antagonizes Rituximab-dependent NK-cell mediated
cytotoxicity
Session: 625. Lymphoma: Pre-Clinical – Chemotherapy and Biologic Agents:
Modulating the Immune System in Lymphoma
Date: Monday, December 9, 2013
Presentation Time: 10:30 AM
Location: Ernest N. Morial Convention Center, 220-222
Presenter: Kohrt

Selected Clinical Trials Initiated with ibrutinib Over the Last 21 Months

CLL/SLL

  oRESONATE™ (PCYC-1112) Phase III study of ibrutinib versus ofatumumab in
    patients with R/R CLL/SLL started in the second quarter of 2012. This 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 statistically 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 the
    first quarter 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) started
    in the first quarter of 2013. The primary endpoint of the study is overall
    response rate (ORR). This global study completed its enrollment of 145
    patients more than two quarters ahead of schedule.
  oRESONATE™-2 (PCYC-1115): Phase III study of ibrutinib versus chlorambucil
    in frontline newly diagnosed elderly CLL/SLL patients started in the first
    quarter of 2013. This is a randomized, multicenter, open-label trial of
    ibrutinib as a monotherapy versus chlorambucil in patients 65 years or
    older with treatment naïve CLL/SLL. The study design was agreed upon with
    the FDA under a Special Protocol Assessment (SPA). The study is designed
    to demonstrate superiority of ibrutinib with the primary endpoint of PFS
    when compared to chlorambucil. Pharmacyclics plans to enroll 272 patients
    worldwide and enrollment is now targeted to be completed by the second
    quarter of 2014, one quarter earlier than previously announced.
  oHELIOS (CLL3001): Phase III study of ibrutinib in combination with
    bendamustine and rituximab in patients with R/R CLL/SLL started enrolling
    patients in the third quarter of 2012. This 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. The enrollment target of this global study is
    580 patients.

MCL

  oSPARK (MCL2001): Phase II study of ibrutinib in patients with R/R MCL who
    progressed after bortezomib therapy started in the third quarter of 2012.
    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. Enrollment in MCL2001 was completed
    in April of 2013 with 120 patients enrolled.
  oRAY (MCL3001): Phase III study of ibrutinib versus temsirolimus in R/R MCL
    patients started in the fourth quarter of 2012. This 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. The enrollment target of this global study is 280 patients.
  oSHINE (MCL3002): Phase III study of ibrutinib in combination with
    bendamustine and rituximab in elderly patients with newly diagnosed MCL
    started in the second quarter of 2013. This 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. The enrollment target of this global study is 520 patients.
  oMCL4001: A multicenter, open label Expanded Access Program for ibrutinib
    as a monotherapy in relapsed/refractory (R/R) MCL patients was initiated
    in the US in the second quarter of 2013. 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 diffuse large B-cell lymphoma (DLBCL). This multicenter,
    open-label trial 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 started in the second quarter
    of 2011. This trial is active in several US sites and Pharmacyclics has
    enrolled 70 patients with updated results most recently published at the
    Annual Meeting of the European Hematology Association in June of 2013. In
    July of 2013 a new cohort with ibrutinib dosed at 840mg in patients with
    non-GCB subtype DLBCL was initiated. Pharmacyclics is currently enrolling
    patients in this new cohort.
  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) started in the second quarter of 2012. 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 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, an additional 15 patients with newly diagnosed DLBCL
    enrolled in the study. DBL1002 is currently in the follow up phase.
  oDBL3001: Phase III study of ibrutinib in combination with R-CHOP
    (rituximab, cyclophosphamide, doxorubicin, vincristine, and prednisone) in
    patients with newly diagnosed the non-GCB subtype of DLBCL started in the
    third quarter of 2013. This 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. The enrollment target of this global
    study is 800 patients.

FL

  oFLR2002: Phase II study of ibrutinib in patients with R/R follicular
    lymphoma (FL) started in the second quarter of 2013. This is a
    multi-center, global trial 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 overall
    response rate. The enrollment target of this global study is 110 patients.
  oFLR3001: Phase III study of ibrutinib in patients with R/R indolent
    Non-Hodgkin's Lymphoma (iNHL) was initiated in the third quarter of 2013.
    This is a multi-center, global trial of ibrutinib in patients with
    chemoimmunotherapy-experienced FL and marginal zone lymphoma (MZL), whose
    disease has relapsed from at least 1 prior therapy. The primary endpoint
    of this study is progression free survival. The enrollment target of this
    global study is 400 patients.

WM

  oPhase II study of ibrutinib in patients with R/R Waldenstrom's
    Macroglobulinemia (WM) was started in the second quarter of 2012. 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 also 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) started in the first quarter of 2012. 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. Enrollment in stage I of dosing cohorts 1-4 is complete with
    a total of 67 patients enrolled. At this time, an expansion of cohorts 1
    and 2 is not planned due to the fact that the protocol-defined response
    rate was not achieved. Dosing of the enrolled patients in cohorts 3 and 4
    is continuing.
  oPCYC-1119: Phase I/IIb study of ibrutinib in combination with carlfizomib
    in patients with R/R MM was registered in the third quarter of 2013. The
    Phase I portion of this study is a dose escalation study designed to the
    safety and recommended Phase IIb dose of ibrutinib and carlfizomib. The
    Phase IIb portion will be a randomized, double-blind, placebo controlled
    study to evaluate the efficacy of ibrutinib and carlfizomib versus
    carlfizomib and placebo. The primary endpoint of the Phase IIb portion of
    the study is progression-free survival. Pharmacyclics plans to enroll up
    to 176 patients.

Conference Call

The Company will hold a conference call today at 4:30 p.m. ET. 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: 92632034. 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

B-cells are the immune cells in the body that are responsible for producing
antibodies to fight infections and provide long term immunity. Ibrutinib is a
B-cell receptor pathway inhibitor that interferes with the proteins involved
in signaling and it effectively blocks signals that tell B-cells to grow and
divide, uncontrollably. This therapy can help stop cancer progression while
preserving normal, healthy cells. Ibrutinib is a first in its class, oral
therapy and is a new agent that inhibits the B-cell receptor signaling complex
that plays an important role in the survival of malignant B-cells. It is one
of the first medicines to file for FDA approval via the new Breakthrough
Therapy Designation pathway, bringing new hope to many suffering from CLL and
other B-cell malignancies.

AboutPharmacyclics

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.

We strive to be allies to all of our stakeholders – most importantly patients
waging struggles against rare and incurable cancers – but also the physicians
and family members who care for them, payers, our employees, our shareholders,
and regulatory agencies working to bring life-changing medicines to patients.

Presently,Pharmacyclicshas 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.

Pharmacyclicsis headquartered inSunnyvale, Californiaand is listed on
NASDAQ under the symbol PCYC. To learn more about howPharmacyclics advances
science to improve human healthcare visit us athttp://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)


                                         Sep. 30,              Dec. 31,
                                         2013                  2012
Assets
Cash, cash equivalents and               $ 560,100             $ 317,114
marketable securities ^1
Other current assets ^2                  64,310                29,378
 Total current assets              624,410               346,492
Property and equipment, net              20,856                6,403
Other assets                             3,033                 2,234
 Total assets                      $ 648,299             $ 355,129
Liabilities and Stockholders'
Equity
Deferred revenue - current portion       $   7,411          $   8,139
Other current liabilities                59,775                21,118
 Total current liabilities         67,186                29,257
Deferred revenue - non-current           52,054                62,562
portion
Deferred rent                            707                   784
 Total liabilities                 119,947               92,603
Stockholders' equity                     528,352               262,526
 Total liabilities and             $ 648,299             $ 355,129
stockholders' equity
^1Marketable securities                  $  11,667            $   9,681
^2As of September 30, 2013 and December 31, 2012, Other current assets
includes $52.2 million and $26.6 million, respectively, due to the Company
from Janssen under the collaboration and license agreement related to cost
sharing and Excess Amounts.



Pharmacyclics, Inc.

Condensed Consolidated Statements of Operations

(unaudited; in thousands, except per share data)
                          Three Months Ended          Nine Months Ended
                          Sep. 30,      Sep. 30,    Sep. 30,    Sep. 30,
                          2013           2012         2013         2012
Revenue:
 License and milestone   $         $        $        $   
revenue                   75,000        100,000      125,000      100,000
 Collaboration services  4,088          2,695        11,618       6,745
revenue
 Total revenue        79,088         102,695      136,618      106,745
Operating expenses*:
 Research and            45,066         19,072       126,150      50,285
Development
 Less: Excess amounts
related to Research and   (34,146)       -            (51,523)     -
Development
 Research and         10,920         19,072       74,627       50,285
Development, net
 General and             26,120         4,868        63,882       13,149
Administrative
 Less: Excess amounts
related to General and    (11,378)       -            (14,384)     -
Administrative
 General and          14,742         4,868        49,498       13,149
Administrative, net
 Total operating      25,662         23,940       124,125      63,434
expenses
Income from operations    53,426         78,755       12,493       43,311
Interest and other        148            52           204          155
income, net
Income before income      53,574         78,807       12,697       43,466
taxes
Income tax provision      11,241         3,201        9,924        (2,411)
(benefit)
Net income                $          $        $       $    
                          42,333        75,606       2,773       45,877
Net income per share:
 Basic                 $        $       $       $     
                          0.58           1.09        0.04       0.66
 Diluted               $        $       $       $     
                          0.55           1.02        0.04       0.62
Weighted average shares
used to compute
net income per share:
 Basic                 73,316         69,512       72,409       69,149
 Diluted               77,659         74,456       76,684       73,840
* Includes share-based
compensation as follows:
Research and development  $         $       $        $     
                          5,287          2,590        20,227       6,298
General and               4,849          576          20,348       2,201
administrative
                          $          $       $        $     
                          10,136         3,166       40,575       8,499





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

(unaudited; in thousands, except per share data)
                            Three Months Ended        Nine Months Ended
                            Sep. 30,     Sep. 30,     Sep. 30,     Sep. 30,
                            2013         2012         2013         2012
GAAP net income             $ 42,333     $ 75,606     $  2,773    $ 45,877
Adjustments:
 Research and
Development share-based     5,287        2,590        20,227       6,298
compensation (2)
 General and
Administrative share-based  4,849        576          20,348       2,201
compensation (2)
                            10,136       3,166        40,575       8,499
Non-GAAP net income         $ 52,469     $ 78,772     $ 43,348     $ 54,376
GAAP net income per share - $   0.58  $   1.09  $   0.04  $   0.66
basic
 Share-based             0.14         0.04         0.56         0.13
compensation expense
Non-GAAP net income per     $   0.72  $   1.13  $   0.60  $   0.79
share - basic
GAAP net income per share - $   0.55  $   1.02  $   0.04  $   0.62
diluted
 Share-based             0.13         0.04         0.53         0.12
compensation expense
Non-GAAP net income per     $   0.68  $   1.06  $   0.57  $   0.74
share - diluted

(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: Ramses Erdtmann, SVP of Investor Relations and 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
 
Press spacebar to pause and continue. Press esc to stop.