Pharmacyclics Reports Fourth Quarter and Full Year 2013 Results

       Pharmacyclics Reports Fourth Quarter and Full Year 2013 Results

Company launches its first product, IMBRUVICA™, and records net product
revenue of $13.6 million

PR Newswire

SUNNYVALE, Calif., Feb. 20, 2014

SUNNYVALE, Calif., Feb. 20, 2014 /PRNewswire/ -- Pharmacyclics, Inc. (the
"Company") (Nasdaq: PCYC) today reported financial results and recent
developments for the quarter and year ended December 31, 2013.

Financial Results for the Quarter and Year Ended December 31, 2013

Revenue

Total revenue for the quarter ended December 31, 2013 increased 113% to $123.6
million, from $58.0 million for the quarter ended December 31, 2012. Total
revenue for the year ended December 31, 2013 increased 58% to $260.2 million
from $164.7 million for the year ended December 31, 2012.

Collaboration and license agreement revenue increased 90% to $110.0 million
for the quarter ended December 31, 2013, from $58.0 million for the quarter
ended December 31, 2012, primarily driven by an increase in milestone revenue
related to our collaboration and license agreement (the "Agreement") with
Janssen Biotech, Inc. and its affiliates ("Janssen"). During the quarter ended
December 31, 2013, milestone revenue of $110.0 million included $60 million
earned related to an approval milestone and $50 million earned related to
regulatory milestones under the Agreement. During the quarter ended December
31, 2012, milestone revenue of $50 million was earned related to a development
milestone under the Agreement and $5 million of license revenue was earned
related to the Company's license agreement with Novo Nordisk A/S.

Collaboration and license agreement revenue increased 50% to $246.6 million
for the year ended December 31, 2013, from $164.7 million for the year ended
December 31, 2012, primarily driven by an increase in milestone revenue earned
under the Agreement. For the year ended December 31, 2013, collaboration and
license agreement revenue included milestone revenue of $235 million earned
under the Agreement and total collaboration revenue of $11.6 million. For the
year ended December 31, 2013, milestone revenue related to the Agreement
included $125 million in regulatory milestones earned, a $60 million approval
milestone earned and $50 million development milestone earned. For the year
ended December 31, 2012, total revenue of $164.7 million included $150 million
of development milestone revenue earned under the Agreement, $5 million of
license revenue earned related to the Company's license agreement with Novo
Nordisk A/S and total collaboration revenue of $9.7 million.

Total revenue for the quarter and year ended December 31, 2013 also increased
due to $13.6 million of net product revenue from sales of IMBRUVICA™
(ibrutinib). As previously announced, on November 13, 2013, the U.S. Food and
Drug Administration ("FDA") approved IMBRUVICA™ as a single agent for the
treatment of patients with mantle cell lymphoma ("MCL") who have received at
least one prior therapy.

Subsequent to December 31, 2013, on February 12, 2014 we announced that the
FDA approved IMBRUVICA™ as a single agent for the treatment of patients with
chronic lymphocytic leukemia ("CLL") who have received at least one prior
therapy. This approval of IMBRUVICA™ in CLL triggers a $60 million milestone
payment to us under our collaboration agreement with Janssen, which will be
recognized as revenue in the first quarter of 2014.

To date, in addition to upfront payment of $150 million, we have earned
milestone payments of $445 million under the Agreement. We may receive up to
an additional $380 million ($50 million for development progress, $100 million
for regulatory progress and $230 million for approval) in development,
regulatory and approval milestone payments, however, clinical development
entails risks and we have no assurance as to whether or when the milestone
targets might be achieved.

Non-GAAP and GAAP net income

Non-GAAP net income reported for the quarter ended December 31, 2013 was $73.9
million, or $1.00 and $0.95 net income per basic and diluted share,
respectively, compared to non-GAAP net income of $46.2 million, or $0.66 and
$0.62 net income per basic and diluted share, respectively for the quarter
ended December 31, 2012.

Non-GAAP net income for the year ended December 31, 2013 was $117.2 million,
or $1.61 and $1.52 net income per basic and diluted share, respectively.
Non-GAAP net income reported for the year ended December 31, 2012 was $100.6
million, or $1.45 and $1.36 net income per basic and diluted share,
respectively. 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 December 31, 2013 was $64.2 million, or
$0.87 and $0.82 net income per basic and diluted share, respectively, compared
to GAAP net income of $41.9 million, or $0.60 and $0.56 net income per basic
and diluted share, respectively, for the quarter ended December 31, 2012.
Included in GAAP net income for the quarters ended December 31, 2013 and 2012
was stock-based compensation expense of $9.6 million and $4.3 million,
respectively.

GAAP net income for the year ended December 31, 2013 was $67.0 million, or
$0.92 and $0.87 net income per basic and diluted share respectively, compared
to GAAP net income of $87.8 million, or $1.27 and $1.19 net income per basic
and diluted share, respectively, for the year ended December 31, 2012.
Included in GAAP net income for the years ended December 31, 2013 and 2012 was
stock-based compensation expense of $50.2 million and $12.8 million,
respectively.

Costs and expenses

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 we are responsible for 40% of development costs.
The Agreement includes a 50/50 net profit sharing arrangement for the
commercialization of any products resulting from the collaboration including
IMBRUVICA™. The Agreement with Janssen also provides for a $50 million annual
cap of our share of development costs and pre-tax commercialization losses for
each calendar year.

GAAP costs and expenses were $38.1 million for the quarter ended December 31,
2013, compared to $16.7 million for the quarter ended December 31, 2012. As we
exceeded the $50 million annual cap on our share of development costs under
the Agreement, all of our share of development and commercial costs chargeable
to the collaboration during the quarter ended December 31, 2013 represented
amounts incurred in excess of the annual cap ("Excess Amounts"). We recognize
Excess Amounts as a reduction to costs and expenses. For the quarter ended
December 31, 2013, we recognized $50.2 million of Excess Amounts as a
reduction to costs and expenses, compared to $18.1 million for the quarter
ended December 31, 2012. Of the Excess Amounts recognized for the quarter
ended December 31, 2013, $34.2 million was recorded as a reduction to research
and development expenses and $16.0 million was recorded as a reduction to
general and administrative expenses.

GAAP costs and expenses were $162.2 million for the year ended December 31,
2013, compared to $80.1 million for the year ended December 31, 2012. During
the year ended December 31, 2013, we recognized $116.1 million of Excess
Amounts as a reduction to costs and expenses, compared to $18.1 million for
the year ended December 31, 2012. Of the Excess Amounts recognized for the
year ended December 31, 2013, $85.7 million was recorded as a reduction to
research and development expenses and $30.4 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, we have recorded Excess Amounts
amounting to $134.3 million. We recognize Excess Amounts as a reduction to
costs and expenses since our 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 our share of pre-tax profits (if any) after the third profitable calendar
quarter for the product. 

Cash and Investments Position

As of December 31, 2013, we had cash, cash equivalents and marketable
securities of $635.6 million, compared with $317.1 million as of December 31,
2012. The Company now expects to end calendar year 2014 in excess of $600
million in cash, cash equivalents and marketable securities.

"Today, we are reporting on the first commercial sales in the history of
Pharmacyclics. After our first approval at the end of last year, we had a
strong commercial start and reported $13.6 million of IMBRUVICA^™ net product
revenue in our first six weeks of sales," said Bob Duggan, CEO and Chairman of
Pharmacyclics. "Our company's goal is to lead the creation of a new era of
patient-friendly, body-harmonious medicinal solutions. The commercialization
of IMBRUVICA^™ in the therapeutic areas of MCL and most recently in CLL is a
big step forward in support of patients. We have built a new commercial
organization and are now educating healthcare professionals about the safety
and efficacy of IMBRUVICA™ as a new alternative for patients struggling with
these diseases. We are looking ahead to a very productive 2014, a year where
we intend to make a significant difference for the betterment of patients."

Regulatory Update

IMBRUVICA™ is the first FDA approved, once-daily, single-agent, oral kinase
inhibitor for patients with MCL or CLL who have received at least one prior
therapy. IMBRUVICA™ is being jointly developed and commercialized by
Pharmacyclics and Janssen Biotech, Inc.

On November 7, 2013, we announced that 117 events had occurred in the
randomized, multicenter, open-label Phase III RESONATE study, PCYC-1112-CA, a
head-to-head comparison of IMBRUVICA™ versus ofatumumab, and that an interim
analysis would be performed. On January 7, 2014, we announced that the
Independent Data Monitoring Committee unanimously recommended that the study
be stopped early because the study demonstrated that patients receiving
IMBRUVICA™ showed a statistically significant improvement in progression-free
survival and overall survival over those receiving ofatumumab. We anticipate
providing a comprehensive RESONATE study report to the regulatory authorities
within the coming months and look forward to presenting the data at an
upcoming medical congress.

On February 12, 2014, after a priority review of our New Drug Application, the
U.S. Food and Drug Administration (FDA) approved IMBRUVICA™ under the FDA's
accelerated approval program as a single agent for the treatment of patients
with chronic lymphocytic leukemia (CLL) who have received at least one prior
therapy. This second indication follows the approval of IMBRUVICA™ on November
13, 2013, for the treatment of patients with mantle cell lymphoma (MCL) who
have received at least one prior therapy, granted under the agency's
Breakthrough Therapy Designation. Both approvals were based on data from Phase
II studies and are based on overall response rate (ORR). An improvement in
survival or disease-related symptoms has not been established.

Most recently IMBRUVICA™ was also included in the National Comprehensive
Cancer Network (NCCN) Clinical Practice Guidelines in Oncology (NCCN
Guidelines^® Non-Hodgkin's Lymphomas, Version 1.2014) for relapsed/refractory
(R/R) MCL, (R/R) CLL and two other histologies.

Commercial Update

Together with our collaboration partner Janssen we built a hematology-focused
commercial team with a national footprint, reaching across all US regions.
After the MCL approval on November 13, 2013, IMBRUVICA™ became commercially
available in the United States. On February 12, 2014 IMBRUVICA™ was also
approved for patients with CLL who have received at least one prior therapy.
IMBRUVICA™ is being sold today in both indications by over 120 full-time
equivalent sales professionals in conjunction with our commercial partner
Janssen and supported by National Account Directors, Medical Science Liaisons,
as well as Pharmacyclics' teams of Medical Affairs, Market Access, Marketing,
Business Intelligence and Public Relations professionals.

Clinical Update

To date, over 2,800 patients have been treated in company sponsored trials,
conducted in over 35 countries around the globe and involving more than 800
principal investigators. IMBRUVICA™ clinical trials are active in all regions
including US, Europe, Asia Pacific, Asia, and Latin America. Currently there
are 10 Phase III clinical trials initiated with IMBRUVICA™ and a total of 41
trials are registered on www.clinicaltrials.gov. As all these studies complete
enrollment we will have approximately 7,500 patients participating in
IMBRUVICA™ trials. In the past months we initiated one company sponsored Phase
III study and two medical research center sponsored Phase III studies. As of
today there are 6 Phase III studies focused on patients with CLL, two designed
for patients with MCL, one for patients with diffuse large B-cell lymphoma and
one for patients with follicular lymphoma.

During our fourth quarter 2013, Pharmacyclics participated in the 55th Annual
American Society of Hematology (ASH) Meeting in New Orleans. During the
conference 40 clinical, non-clinical and pre-clinical presentations on
IMBRUVICA^™ were provided. There were seven presentations of IMBRUVICA^™
clinical data, of which five were oral presentations, including one
presentation on the use of IMBRUVICA^™ in Waldenstrom's Macroglobulinemia(WM)
that was designated "Best of ASH". In total, 33 additional pre-clinical and
non-clinical presentations provided new discoveries using IMBRUVICA™; seven of
these were oral presentations. These presentations further elucidated the
mechanism of action of IMBRUVICA^™ and its effect in the tumor
microenvironment and provided data on quality of life changes. Results covered
various B-cell malignancies: chronic lymphocytic leukemia (CLL) and small
lymphocytic lymphoma (SLL), Waldenstrom's Macroglobulinemia (WM), and
Non-Hodgkin's Lymphoma (NHL).

In December of 2013, Dr. Susan O'Brien of MD Anderson Cancer Center published
in The Lancet data from a cohort of 31 elderly, treatment naive CLL patients
treated with single agent IMBRUVICA™. The data showed an acceptable safety
profile of IMBRUVICA™ with most common side effects being Grade 1 diarrhea,
nausea and fatigue. After a median follow up of 22 months, one patient
progressed, and the progression free survival (PFS) at approximately 2 years
in that population was 96%.

An Investigational New Drug (IND) Application was filed for a BTK inhibitor
developed by Pharmacyclics and designed for autoimmune diseases. The FDA
reviewed the IND and considered it safe to proceed. This compound will now
enter the dose escalation stage of a Phase I trial, administered first to
healthy volunteers and then to autoimmune patients with Rheumatoid Arthritis.

IMBRUVICA™ (ibrutinib) – Selected Clinical Trial Updates

Chronic Lymphocytic Leukemia/ Small Lymphocytic Lymphoma (CLL/SLL)

  oRESONATE™ (PCYC-1112): Phase III study of IMBRUVICA™ versus ofatumumab in
    patients with relapsed/refractory (R/R) CLL/SLL was initiated in the
    second quarter of 2012. This is a randomized, multi-center, open-label
    Phase III trial of IMBRUVICA™ 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. The study met its primary end point of PFS as well as a key
    secondary endpoint of overall survival at the interim analysis in January
    2014. We anticipate to file the study data with the FDA within the first
    half of 2014 and expect a review by the agency to be completed within the
    first half of 2015.
  oRESONATE™-17 (PCYC-1117): Open label, single arm, Phase II study of
    IMBRUVICA™ as a mono-therapy in patients with CLL who have deletion of
    chromosome 17p and who did not respond to or relapsed after at least one
    prior treatment (a high unmet need population) was initiated 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 in
    Q3 of 2013, more than two quarters ahead of schedule. Patients will be
    followed for 12 months after the enrollment of the last patient for an
    assessment of ORR.
  oRESONATE™-2 (PCYC-1115): Phase III study of IMBRUVICA™ versus chlorambucil
    in newly diagnosed elderly CLL/SLL patients was initiated in the first
    quarter of 2013. This is a randomized, multicenter, open-label trial of
    IMBRUVICA^™ 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 primary objective
    of the study is to demonstrate a clinically significant improvement in PFS
    when compared to chlorambucil. Pharmacyclics has just completed enrollment
    of 273 patients worldwide, approximately 9 months ahead of the original
    schedule. A data read out is anticipated in the second half of 2015.
  oHELIOS (CLL3001): Phase III study of IMBRUVICA™ in combination with
    bendamustine and rituximab in patients with R/R CLL/SLL was initiated in
    the third quarter of 2012. This is a randomized, multi-center,
    double-blinded, placebo-controlled trial of IMBRUVICA™ in combination with
    bendamustine and rituximab versus placebo in combination with bendamustine
    and rituximab (BR) in R/R CLL/SLL patients who have received at least one
    line of prior therapy. The primary objective of the study is to
    demonstrate a clinically significant improvement in PFS when compared to
    bendamustine and rituximab. This study completed enrollment of 578
    patients worldwide in Q1, 2014.
  oCLL3002: Phase III study of IMBRUVICA™ versus rituximab in patients with
    R/R CLL/SLL was initiated in the fourth quarter of 2013. This is a
    randomized, open-label, multi-center study to evaluate the efficacy and
    safety of versus rituximab in adult Chinese patients with R/R CLL or SLL
    with active disease requiring treatment, who have failed at least 1 prior
    line of therapy and are not considered appropriate candidates for
    treatment or retreatment with purine analog-based therapy or combination
    chemo-immunotherapy. The primary objective of the study is to demonstrate
    a clinically significant improvement in PFS. The enrollment target of this
    study is 150 patients.
  oThird party sponsored: Phase III study of IMBRUVICA™ versus IMBRUVICA™ +
    rituximab versus bendamustine + rituximab in frontline newly diagnosed
    elderly (≥ 65 Years of Age) CLL/SLL patients (Alliance A041202) was
    initiated by the National Cancer Institute in the fourth quarter of 2013.
    This is a randomized, multi-center study designed to evaluate the
    improvement in PFS of IMBRUVICA™ with or without rituximab vs bendamustine
    and rituximab. Secondary outcome measures include overall survival and
    duration of response. The enrollment target of this multi-center study is
    523 patients.
  oThird party sponsored: Phase III study in treatment naive, young fit
    patients with CLL, comparing the combination of IMBRUVICA^™ and Rituxan to
    chemo immunotherapy of FCR (fludarabine, cyclophosphamide, and rituximab),
    (ECOG1912), was initiated by the Eastern Cooperative Oncology Group in the
    first quarter of 2014. This is a randomized study designed to evaluate the
    improvement in PFS of IMBRUVICA™ with rituximab vs FCR. Secondary outcome
    measures include overall survival and adverse events. The enrollment
    target of this multi-center study is 519 patients.

Mantle Cell Lymphoma (MCL)

  oRAY (MCL3001): Phase III study of IMBRUVICA™ versus temsirolimus in R/R
    MCL patients was initiated in the fourth quarter of 2012. This is a
    randomized, multi-center, open-label trial of IMBRUVICA™ 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 was 280 patients.
    This trial completed enrollment in Q4 of 2013.
  oSHINE (MCL3002): Phase III study of IMBRUVICA™ in combination with BR in
    elderly patients with newly diagnosed MCL was initiated in the second
    quarter of 2013. This is a randomized, multi-center, double-blinded,
    placebo-controlled trial of IMBRUVICA™ plus BR versus placebo plus BR 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.

Diffuse Large B-cell Lymphoma (DLBCL)

  oPCYC-1106: Phase II study of IMBRUVICA™ in patients with R/R DLBCL was
    initiated in the second quarter of 2011. This multicenter, open-label
    trial, dosing patients with single agent IMBRUVICA™ at 560mg, was designed
    to assess the activity of IMBRUVICA™ 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 U.S. sites and
    Pharmacyclics has enrolled 70 patients. In July of 2013 a new cohort with
    IMBRUVICA™ dosed at 840mg in patients with non-GCB subtype DLBCL was
    initiated. This second cohort exploring 840mg has been closed after the
    first 8 patients were enrolled, given that this higher dose did not show
    improved ORR or DOR.
  oPHOENIX (DBL3001): Phase III study of IMBRUVICA™ in combination with
    R-CHOP (rituximab, cyclophosphamide, doxorubicin, vincristine, and
    prednisone) in patients with newly diagnosed non-GCB subtype of DLBCL was
    initiated in the third quarter of 2013. This is a randomized,
    multi-center, double-blinded, controlled trial of IMBRUVICA™ plus
    rituximab, cyclophosphamide, doxorubicin, vincristine, and prednisone
    (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.

Follicular Lymphoma (FL)

  oPCYC 1125: Phase II multicenter, open-label, study of IMBRUVICA™, in
    combination with Rituximab in previously untreated subjects with
    follicular lymphoma was initiated in the fourth quarter of 2013. The
    primary endpoint of this study is overall response rate. The enrollment
    target of this study is 80 patients.
  oFLR2002: Phase II study of IMBRUVICA^™ in patients with R/R FL was
    initiated in the second quarter of 2013. This is a multi-center,
    open-label, single-arm, global trial of IMBRUVICA™ 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.
  oSELENE (FLR3001): Phase III study of IMBRUVICA™ in patients with R/R
    indolent Non-Hodgkin's Lymphoma (iNHL) was initiated in the first quarter
    of 2014. This is a randomized, multi-center, placebo-controlled Phase III
    trial of in combination with either BR or R-CHOP in patients with
    previously treated indolent Non-Hodgkin Lymphoma (iNHL). The primary
    endpoint of this study is progression free survival. The enrollment target
    of this global study is 400 patients.

Marginal Zone Lymphoma (MZL)

  oPCYC-1121: Phase II study of IMBRUVICA™ in patients with R/R marginal zone
    lymphoma was initiated in the fourth quarter of 2013. This is a multi
    center, open-label, monotherapy study to evaluate the safety and efficacy
    of IMBRUVICA^™ in patients with R/R marginal zone lymphoma. The primary
    endpoint of this study is overall response rate and the enrollment target
    of this study is 60 patients.

Waldenstrom's Macroglobulinemia (WM)

  oThird party sponsored: Phase II study of IMBRUVICA™ in patients with R/R
    Waldenstrom's Macroglobulinemia was initiated in the second quarter of
    2012. This is a multicenter, open label study of monotherapy IMBRUVICA™ in
    patients with WM who failed at least one prior therapy. The primary
    endpoint of this study is ORR. The study will also assess the safety and
    tolerability of IMBRUVICA^™ as well as progression-free survival. This
    study is sponsored by the Dana-Farber Cancer Institute and completed
    enrollment of 63 patients with data recently presented at ASH 2013 and
    included in the "Best of ASH".

Multiple Myeloma (MM)

  oPCYC-1111: Phase II study of IMBRUVICA™ in patients with R/R multiple
    myeloma was initiated in the first quarter of 2012. This is a Phase II,
    multi-center, open-label trial designed to assess the safety and efficacy
    of IMBRUVICA™ as a single agent and in combination with dexamethasone in
    patients with R/R MM. At this time, an expansion of cohorts 1 and 2 (420mg
    and 560mg with dexamethasone) is not planned due to the fact that the
    protocol-defined response rate was not achieved. The company is currently
    reviewing the results of patients treated in cohorts 3 and 4 (840mg and
    840mg with dexamethasone).
  oPCYC-1119: Phase I/IIb study of IMBRUVICA^™ in combination with
    carfilzomib in patients with R/R MM was initiated in the third quarter of
    2013. The Phase I portion of this study is a dose escalation study
    designed to assess the safety and recommended Phase IIb dose of IMBRUVICA™
    and carfilzomib. The Phase IIb portion will be a randomized, double-blind,
    placebo controlled study to evaluate the efficacy of IMBRUVICA^™ and
    carfilzomib versus carfilzomib and placebo. The primary endpoint of the
    Phase IIb portion of the study is progression-free survival. The
    enrollment target of this study is 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: 34406989. 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.

INDICATIONS
IMBRUVICA™ (ibrutinib) is indicated for the treatment of:

  oPatients with mantle cell lymphoma (MCL) who have received at least one
    prior therapy.
  oPatients with chronic lymphocytic leukemia (CLL) who have received at
    least one prior therapy.

These indications are based on overall response rate. Improvements in survival
or disease-related symptoms have not been established.

IMPORTANT SAFETY INFORMATION WARNINGS AND PRECAUTIONS

Hemorrhage - Five percent of patients with MCL and 6% of patients with CLL had
Grade 3 or higher bleeding events (subdural hematoma, ecchymoses,
gastrointestinal bleeding, and hematuria). Overall, bleeding events including
bruising of any grade occurred in 48% of patients with MCL treated with 560 mg
daily and 63% of patients with CLL treated at 420 mg daily.The mechanism for
the bleeding events is not well understood. IMBRUVICA™ may increase the risk
of hemorrhage in patients receiving antiplatelet or anticoagulant therapies.
Consider the benefit-risk of withholding IMBRUVICA™ for at least 3 to 7 days
pre and post-surgery depending upon the type of surgery and the risk of
bleeding.

Infections - Fatal and non-fatal infections have occurred with IMBRUVICA™
therapy. At least 25% of patients with MCL and 35% of patients with CLL had
infections Grade 3 or greater NCI Common Terminology Criteria for Adverse
Events (CTCAE). Monitor patients for fever and infections and evaluate
promptly.

Myelosuppression - Treatment-emergent Grade 3 or 4 cytopenias were reported in
41% of patients with MCL and 35% of patients with CLL. These included
neutropenia (29%), thrombocytopenia (17%) and anemia (9%) in patients with MCL
and neutropenia (27%) and thrombocytopenia (10%) in patients with CLL. Monitor
complete blood counts monthly.

Renal Toxicity - Fatal and serious cases of renal failure have occurred with
IMBRUVICA™ therapy. Treatment-emergent increases in creatinine levels up to
1.5 times the upper limit of normal occurred in 67% of patients with MCL and
23% of patients with CLL. Increases in creatinine 1.5 to 3 times the upper
limit of normal occurred in 9% of patients with MCL and 4% of patients with
CLL. Periodically monitor creatinine levels. Maintain hydration.

Second Primary Malignancies - Other malignancies have occurred in 5% of
patients with MCL and 10% of patients with CLL who have been treated with
IMBRUVICA™. Four percent of patients with MCL, had skin cancers, and 1% had
other carcinomas. Eight percent of patients with CLL had skin cancers and 2%
had other carcinomas.

Embryo-Fetal Toxicity - Based on findings in animals, IMBRUVICA™ can cause
fetal harm when administered to a pregnant woman. Advise women to avoid
becoming pregnant while taking IMBRUVICA™. If this drug is used during
pregnancy or if the patient becomes pregnant while taking this drug, the
patient should be apprised of the potential hazard to a fetus.

ADVERSE REACTIONS -

MCL: The most commonly occurring adverse reactions (> 20%) in the clinical
trial were thrombocytopenia*, diarrhea (51%), neutropenia*, anemia*, fatigue
(41%), musculoskeletal pain (37%), peripheral edema (35%), upper respiratory
tract infection (34%), nausea (31%), bruising (30%), dyspnea (27%),
constipation (25%), rash (25%), abdominal pain (24%), vomiting (23%), and
decreased appetite (21%).

*Treatment-emergent decreases (all grades) of platelets (57%), neutrophils
(47%) and hemoglobin (41%) were based on laboratory measurements and adverse
reactions.

The most common Grade 3 or 4 non-hematological adverse reactions ( > 5%) were
pneumonia (7%), abdominal pain (5%), atrial fibrillation (5.4%), diarrhea
(5%), fatigue (5%), and skin infections (5%). Treatment-emergent Grade 3 or 4
cytopenias were reported in 41% of patients. Ten patients (9%) discontinued
treatment due to adverse reactions in the trial (N=111).

The most frequent adverse reaction leading to treatment discontinuation was
subdural hematoma (1.8%). Adverse reactions leading to dose reduction occurred
in 14% of patients.

CLL: The most commonly occurring adverse reactions ( > 20%) in the clinical
trial were thrombocytopenia*, diarrhea (63%), bruising (54%), neutropenia*,
anemia*, upper respiratory tract infection (48%), fatigue (31%),
musculoskeletal pain (27%), rash (27%), pyrexia (25%), constipation (23%),
peripheral edema (23%), arthralgia (23%), nausea (21%), stomatitis (21%),
sinusitis (21%), and dizziness (21%).

*Treatment-emergent decreases (all grades) of platelets (71%), neutrophils
(54%) and hemoglobin (44%) were based on laboratory measurements per IWCLL
criteria and adverse reactions.

The most common Grade 3 or 4 non-hematological adverse reactions ( > 5%) were
pneumonia (8%), hypertension (8%), atrial fibrillation (6.3%), sinusitis (6%),
skin infection (6%), dehydration (6.4%), and musculoskeletal pain (6%).
Treatment-emergent Grade 3 or 4 cytopenias were reported in 35% of patients.

Five patients (10%) discontinued treatment due to adverse reactions in the
trial (N=48). These included 3 patients (6%) with infections and 2 patients
(4%) with subdural hematomas. Adverse reactions leading to dose reduction
occurred in 13% of patients.

DRUG INTERACTIONS

CYP3A Inhibitors - Avoid concomitant administration with strong or moderate
inhibitors of CYP3A. If a moderate CYP3A inhibitor must be used, reduce the
IMBRUVICA™ dose.

CYP3A Inducers - Avoid co-administration with strong CYP3A inducers.

SPECIAL POPULATIONS - Hepatic Impairment - Avoid use in patients with baseline
hepatic impairment.

For the full prescribing information, visit
http://www.imbruvica.com/downloads/Prescribing_Information.pdf

Access to IMBRUVICA™
Patients who are prescribed IMBRUVICA™ can receive access support through
several distinct programs:

  oThe YOU&i Start™ program enables eligible patients who have been
    prescribed IMBRUVICA™ for an FDA-approved indication and are experiencing
    insurance coverage delays to access free product for a limited period of
    time, if they meet certain requirements. In addition, our YOU&i Access
    service center is set up to help patients ensure that all access-related
    administration is properly handled.
  oThe YOU&i Access™ Instant Savings Program helps commercially insured
    patients who have difficulties with out-of-pocket expenses for IMBRUVICA™.
    Eligible patients may receive support to reduce their monthly
    out-of-pocket costs to $25.
  oPatients who are deemed uninsured and eligible, and who qualify based on
    financial need, can access IMBRUVICA™ through the Johnson & Johnson
    Patient Assistance Foundation (JJPAF), an independent non-profit
    organization to which Pharmacyclics makes donations.
  oPharmacyclics will also support third party foundations, organizations and
    other efforts to help patients in need get access to appropriate care.

More information about these comprehensive patient access programs is
accessible at 1-877-877-3536 or at www.IMBRUVICA.com.

About IMBRUVICA™

IMBRUVICA™ is indicated for the treatment of patients with mantle cell
lymphoma or chronic lymphocytic leukemia who have received at least one prior
therapy. These indications are based on overall response rate. Improvements in
survival or disease-related symptoms have not been established. For more
information about IMBRUVICA™, including the full prescribing information,
please visit www.IMBRUVICA.com. IMBRUVICA™ is a first in class, oral therapy
and is a new agent that inhibits an enzyme called Bruton tyrosine kinase
(BTK). BTK is a key signaling molecule of the B-cell receptor signaling
complex that plays an important role in the survival and spread of malignant
B-cells. IMBRUVICA™ blocks signals that tell malignant B-cells to multiply and
spread uncontrollably. It is one of the first medicines to file for FDA
approval via the new Breakthrough Therapy Designation pathway, enabling
Pharmacyclics to rapidly bring this medicine to patients in need.

To date,ten Phase III trials have been initiated with ibrutinib and a total
of41 trials are currently registered on www.clinicaltrials.gov. Janssen and
Pharmacyclics entered a collaboration and license agreement in December 2011
to co-develop and co-commercialize IMBRUVICA™.

AboutPharmacyclics

We are 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. To identify and control promising product candidates based on
scientific development and administrational expertise, develop our products in
a rapid, cost-efficient manner and to pursue commercialization and/or
development partners when and where appropriate. We exist to make a difference
for the better and these are important times to do just that.

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.

In addition to IMBRUVICA™ (ibrutinib), Pharmacyclics has three other product
candidates in clinical development and several preclinical molecules in lead
optimization. We are committed to high standards of ethics, scientific rigor,
and operational efficiency as we move each of these programs toward potential
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 costs and
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)
                                                  Dec. 31,       Dec. 31,
                                                  2013           2012
Assets
Cash, cash equivalents and marketable securities  $ 635,628     $ 317,114
^1
Other current assets ^2                           105,173        29,378
 Total current assets                       740,801        346,492
Property and equipment, net                       25,471         6,403
Other assets                                      2,479          2,234
 Total assets                               $ 768,751     $ 355,129
Liabilities and Stockholders' Equity
Deferred revenue - current portion                $    7,581  $    8,139
Other current liabilities^3                       80,050         21,118
 Total current liabilities                  87,631         29,257
Deferred revenue - non-current portion            52,025         62,562
Other long-term liabilities                       1,472          784
 Total liabilities                          141,128        92,603
Stockholders' equity                              627,623        262,526
 Total liabilities and stockholders'        $ 768,751     $ 355,129
equity
^1 Marketable securities                          $  11,672    $    9,681

^2As of December 31, 2013 and 2012, Other current assets includes $52.0
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.
^3 As of December 31, 2013 and 2012, Other current liabilities includes $3.4
million and $0, respectively, payable to Janssen under the cost sharing
arrangement.





Pharmacyclics, Inc.

Condensed Consolidated Statements of Operations

(unaudited; in thousands, except per share data)
                            Three Months Ended         Years Ended
                            Dec. 31,     Dec. 31,    Dec. 31,   Dec. 31,
                            2013          2012         2013        2012 (1)
Revenue:
 Collaboration and        $ 109,978     $ 57,963     $ 246,596   $ 164,708
license agreement revenue
 Product revenue, net    13,573        -            13,573      -
 Total revenue          123,551       57,963       260,169     164,708
Costs and expenses*:
 Cost of goods sold        3,501         -            3,501       -
 Research and Development  44,715        27,567       170,865     77,852
 Less: Excess amounts
related to Research and     (34,209)      (17,306)     (85,732)    (17,306)
development
 Research and           10,506        10,261       85,133      60,546
development, net
 General and               40,134        7,225        104,016     20,374
administrative
 Less: Excess amounts
related to General and      (16,021)      (819)        (30,405)    (819)
administrative
 General and            24,113        6,406        73,611      19,555
administrative, net
 Total costs and        38,120        16,667       162,245     80,101
expenses
Income from operations      85,431        41,296       97,924      84,607
Interest and other income,  8             77           212         232
net
Income before income taxes  85,439        41,373       98,136      84,839
Income tax provision        21,202        (554)        31,126      (2,965)
(benefit)
Net income                  $  64,237    $ 41,927     $  67,010  $  87,804
Net income per share:
 Basic                   $          $   0.60  $        $   
                            0.87                      0.92       1.27
 Diluted                 $          $   0.56  $        $   
                            0.82                      0.87       1.19
Weighted average shares
used to compute
net income per share:
 Basic                   73,868        69,839       72,777      69,322
 Diluted                 77,917        74,399       77,083      74,020
* Includes stock-based
compensation as follows:
Cost of goods sold          $         $       $       $     
                            436           -            436          -
Research and development    3,814         2,767        24,041      9,065
General and administrative  5,385         1,503        25,733      3,704
                            $   9,635  $  4,270   $  50,210  $  12,769

(1) On November 14, 2012, the Board of Directors approved a change in our
fiscal year end from June 30 to December 31, effective December 31, 2012. This
earnings release, which reports our financial results for the quarter and year
ended December 31, 2013, includes financial results for the comparable year
ended December 31, 2012 which have not been audited.





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

(unaudited; in thousands, except per share data)
                                 Three Months Ended     Years Ended
                                 Dec. 31,     Dec. 31,  Dec. 31,    Dec. 31,
                                 2013         2012      2013        2012
GAAP net income                  $ 64,237     $ 41,927  $  67,010  $  87,804
Adjustments:
 Cost of goods sold           436          -         436         -
stock-based compensation (2)
 Research and development     3,814        2,767     24,041      9,065
stock-based compensation (2)
 General and administrative   5,385        1,503     25,733      3,704
stock-based compensation (2)
                                 9,635        4,270     50,210      12,769
Non-GAAP net income              $ 73,872     $ 46,197  $ 117,220   $ 100,573
GAAP net income per share -      $   0.87  $       $        $   
basic                                         0.60     0.92       1.27
 Stock-based compensation     0.13         0.06      0.69        0.18
expense
Non-GAAP net income per share -  $   1.00  $       $        $   
basic                                         0.66     1.61       1.45
GAAP net income per share -      $   0.82  $       $        $   
diluted                                       0.56     0.87       1.19
 Stock-based compensation     0.13         0.06      0.65        0.17
expense
Non-GAAP net income per share -  $   0.95  $       $        $   
diluted                                       0.62     1.52       1.36

    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.

SOURCE Pharmacyclics, Inc.

Website: http://www.pharmacyclics.com
Contact: Ramses Erdtmann, SVP of Investor Relations and Administration, Phone:
408-215-3325, Manisha Pai, Sr. Director of Public Relations & Corporate
Communications, Phone: 408-215-3720, or U.S. Medical Information,
Pharmacyclics: 1-877-877-3536, medinfo@pcyc.com
 
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