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1. Company Snapshot

1.a. Company Description

Ironwood Pharmaceuticals, Inc., a healthcare company, focuses on the development and commercialization of gastrointestinal (GI) products.It markets linaclotide, a guanylate cyclase type-C agonist for the treatment of adults suffering from irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation (CIC) under the LINZESS name in the United States and Mexico, as well as under the CONSTELLA name in the Canada and European Union.The company is also developing IW-3300, a GC-C agonist for the treatment of visceral pain conditions, including interstitial cystitis/bladder pain syndrome and endometriosis; and CNP-104, an immune nanoparticle for the treatment of biliary cholangitis.


The company has strategic partnerships with AbbVie Inc., AstraZeneca AB, and Astellas Pharma Inc.for the development and commercialization of linaclotide.The company was formerly known as Microbia, Inc.


and changed its name to Ironwood Pharmaceuticals, Inc.in April 2008.Ironwood Pharmaceuticals, Inc.


was incorporated in 1998 and is headquartered in Boston, Massachusetts.

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1.b. Last Insights on IRWD

Ironwood Pharmaceuticals' recent performance was negatively impacted by a series of setbacks. The company's Q4 earnings and revenue fell short of estimates, with a quarterly loss of $0.08 per share, missing the Zacks Consensus Estimate of $0.10 per share. This underperformance was partly due to the company's declining revenue from its LINZESS product, which remains the market leader despite facing challenges. Furthermore, the FDA's request for a confirmatory Phase 3 trial to approve apraglutide for short bowel syndrome with intestinal failure has added to the company's regulatory woes. Additionally, the recent announcement of a new Ironwood chip by Google, while potentially beneficial for the company's AI applications, has not yet translated into tangible benefits for Ironwood Pharmaceuticals.

1.c. Company Highlights

2. Ironwood Pharmaceuticals Delivers Strong Q4 and Full-Year 2024 Results, Positioned for Growth with Apraglutide

Ironwood Pharmaceuticals reported robust financial results for Q4 and full-year 2024, driven by the continued success of its flagship product, LINZESS. The company generated $916 million in net sales for LINZESS in 2024, with prescription demand growing 11% year-over-year. This growth was further bolstered by a 14% increase in new-to-brand prescriptions, highlighting the drug's enduring market leadership despite pricing pressures. Ironwood ended the year with a strong balance sheet, holding $88.6 million in cash and reducing its debt by $115 million over the past year.

Publication Date: Mar -08

📋 Highlights
  • Strong Financial Performance Driven by LINZESS Success: Ironwood reported $916 million in net sales for LINZESS in 2024, with 11% year-over-year prescription growth, solidifying its market leadership despite pricing pressures.
  • Apraglutide Shows Promise for Short Bowel Syndrome: Apraglutide, a long-acting GLP-2 agonist, demonstrated robust results in the STARS Extend study, with 27 patients achieving enteral autonomy, positioning it as a potential life-changing therapy for SBS patients.
  • Strategic Restructuring for Apraglutide Launch: Ironwood has restructured to focus on apraglutide's commercial launch, implementing a targeted approach to engage rare disease specialists and a robust patient support model to ensure access and utilization.
  • 2025 Financial Guidance and Debt Management: The company expects LINZESS sales between $800 million and $850 million for 2025, with adjusted EBITDA guidance of greater than $85 million, reflecting cost-saving measures and disciplined expense management to strengthen the balance sheet.
  • Focus on Long-Term Value Creation: Ironwood remains confident in its ability to generate cash flows from LINZESS to fund future growth, including apraglutide's commercialization, while maintaining a strong commitment to advancing therapies for rare GI diseases.

LINZESS Remains a Cornerstone of Growth

LINZESS, a treatment for irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation (CIC), continues to be the backbone of Ironwood's financial performance. Despite headwinds from pricing competition, the drug's market leadership is supported by effective consumer advertising and broad payer access. Ironwood's ability to maintain LINZESS' dominance underscores the company's strategic focus on maximizing the product's lifecycle. For 2025, the company expects LINZESS sales to range between $800 million and $850 million, with high single-digit prescription demand growth offset by ongoing pricing pressures.

Apraglutide on Track for 2026 Launch

Ironwood is making significant strides with apraglutide, a long-acting GLP-2 agonist for short bowel syndrome (SBS) patients dependent on parenteral support. Recent data from the STARS Extend open-label extension study showed 27 patients achieving enteral autonomy, a life-changing outcome for this rare and debilitating condition. As CEO Greg Martini noted, "Apraglutide has the potential to transform the lives of thousands of patients worldwide." The company has initiated a rolling NDA submission, with completion expected in Q3 2025. If approved, apraglutide will be the first once-weekly GLP-2 therapy for SBS, addressing a significant unmet need for approximately 18,000 patients across the U.S., Europe, and Japan.

Valuation and Financial Outlook

Overall, Ironwood Pharmaceuticals is well-positioned for long-term growth, driven by the continued success of LINZESS and the upcoming launch of apraglutide. The company's focus on advancing therapies for rare gastrointestinal diseases, combined with its strong financial discipline, underscores its commitment to creating value for both patients and shareholders.

3. NewsRoom

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Ironwood Pharmaceuticals (NASDAQ:IRWD) versus Citius Pharmaceuticals (NASDAQ:CTXR) Critical Analysis

Nov -29

Source: defenseworld.net

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IRWD vs. PBYI: Which Small-Cap Biotech Stock Is the Better Pick?

Nov -27

Source: zacks.com

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Ironwood Pharmaceuticals: Today's Gains Seem Sustainable After Disastrous First Half Of 2025

Nov -26

Source: seekingalpha.com

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Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) Given Average Recommendation of “Hold” by Brokerages

Nov -22

Source: defenseworld.net

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Can Linzess Continue to Aid IRWD's Top Line After a Strong Q3?

Nov -21

Source: zacks.com

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Connor Clark & Lunn Investment Management Ltd. Grows Position in Ironwood Pharmaceuticals, Inc. $IRWD

Nov -17

Source: defenseworld.net

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Acadian Asset Management LLC Buys 3,904,498 Shares of Ironwood Pharmaceuticals, Inc. $IRWD

Nov -14

Source: defenseworld.net

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IRWD Rises 110% in a Month: Should You Buy, Sell or Hold the Stock?

Nov -13

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.00%)

6. Segments

Collaborative Arrangements

Expected Growth: 14%

Ironwood Pharmaceuticals' collaborative arrangements drive 14% growth, fueled by strategic partnerships, expanded product offerings, and increased investment in R&D. Key drivers include licensing agreements, co-promotion deals, and joint development initiatives, enabling access to new markets, technologies, and customers.

7. Detailed Products

Linzess

Linzess (linaclotide) is a guanylate cyclase-C agonist indicated for the treatment of irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation (CIC) in adults.

Zurampic

Zurampic (lesinurad) is a selective uric acid reabsorption inhibitor indicated in combination with a xanthine oxidase inhibitor for the treatment of hyperuricemia associated with gout.

Duzallo

Duzallo (lesinurad and allopurinol) is a fixed-dose combination of a selective uric acid reabsorption inhibitor and a xanthine oxidase inhibitor indicated for the treatment of hyperuricemia associated with gout.

8. Ironwood Pharmaceuticals, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ironwood Pharmaceuticals, Inc. operates in a highly competitive industry, but its unique products and strong brand recognition mitigate the threat of substitutes.

Bargaining Power Of Customers

Ironwood Pharmaceuticals, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often critical to its customers' operations, making it difficult for them to negotiate prices.

Bargaining Power Of Suppliers

Ironwood Pharmaceuticals, Inc. relies on a few key suppliers for raw materials and services. While the company has some bargaining power due to its size, suppliers may still have some leverage in negotiations.

Threat Of New Entrants

The pharmaceutical industry has high barriers to entry, including significant research and development costs, regulatory hurdles, and the need for specialized expertise. These barriers make it difficult for new entrants to compete with Ironwood Pharmaceuticals, Inc.

Intensity Of Rivalry

The pharmaceutical industry is highly competitive, with many established players competing for market share. Ironwood Pharmaceuticals, Inc. faces intense competition from other companies with similar products and technologies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 197.63%
Debt Cost 3.95%
Equity Weight -97.63%
Equity Cost 6.82%
WACC 1.14%
Leverage -202.43%

11. Quality Control: Ironwood Pharmaceuticals, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Embecta

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Momentum: 7.0

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PetIQ

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Value: 3.6

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Quality: 3.1

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Quality: 5.0

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Ironwood Pharmaceuticals

A-Score: 3.2/10

Value: 8.3

Growth: 4.2

Quality: 5.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.48$

Current Price

3.48$

Potential

0.00%

Expected Cash-Flows