Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of biotech firm Isis Pharmaceuticals (Nasdaq: ISIS) rallied as much as 12.6% after the company reported better-than-expected second-quarter results.

So what: For the quarter, Isis' loss narrowed to just $0.01 from a year-ago loss of $0.18 while revenue spiked 91% to $47.3 million. The company recognized a $25 million milestone payment from Genzyme, now owned by Sanofi (NYSE: SNY), in the quarter related to the acceptance of its new drug application for Kynamro, which is used to treat a genetic condition affecting LDL ("bad") cholesterol levels. Isis ended the quarter with a robust $336 million in cash and also announced a collaboration and licensing agreement with Biogen Idec (Nasdaq: BIIB) to develop a drug to treat myotonic dystrophy. Isis received an up-front payment of $12 million from Biogen Idec.

Now what: Now we wait. The next big hurdle for Isis is whether or not the Food and Drug Administration and the European regulators approve Kynamro, although all signs are pointing toward a "yes" at the moment. Isis has ample cash and a premier marketing team, so the drug's launch shouldn't be a worry -- however, nothing is a given in the biotech sector. As for me, I'm happy being an innocent bystander and watching the decisions unfold over the next few months.

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