Download PDF

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.

Show Full description

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 2025 Results, Sets Stage for 2026 Growth

Ironwood Pharmaceuticals reported a strong financial performance in 2025, with LINZESS U.S. net sales reaching $865 million, slightly below expectations. The company's adjusted EBITDA was not explicitly stated, but it reported a net loss per share of $0.01, missing the estimated earnings per share of $0.02. The actual EPS came in at -$0.01 relative to estimates at $0.02. Despite this, the company ended the year with $250 million in cash and cash equivalents, a significant improvement from the previous year.

Publication Date: Mar -09

📋 Highlights

LINZESS Performance

LINZESS continued to be a growth driver for Ironwood, with 11% demand growth and 8% new-to-brand volume growth year over year. The FDA's approval of LINZESS for the treatment of irritable bowel syndrome constipation in patients 7 years of age and older further expanded its market potential. The company lowered the LINZESS list price effective January 1, 2026, to support ongoing patient access. For 2026, Ironwood expects LINZESS to return to blockbuster status with over $1.1 billion in U.S. net sales, driven by improved net price and low single-digit prescription demand growth.

Aproglutide Progress

The company made significant progress with aproglutide, meeting with the FDA to align on the Phase III clinical trial design, STARS II. The trial is expected to begin site activation in the second quarter of 2026, and the data generated will support an eventual NDA submission. Ironwood believes aproglutide has demonstrated strong efficacy and tolerability, with the potential to become a leading treatment for short bowel syndrome.

Valuation and Outlook

Ironwood's valuation metrics indicate a mixed picture, with a P/E Ratio of 23.64 and a P/S Ratio of 1.93. The company's EV/EBITDA is 7.79, suggesting a relatively reasonable valuation. With a strong outlook for LINZESS and the potential for aproglutide to drive future growth, Ironwood is well-positioned for 2026. Analysts estimate revenue growth at 3.6% for next year, and the company's guidance for 2026 is expected to be met with LINZESS net sales between $1.125 billion and $1.175 billion.

Financial Position

Ironwood finished 2025 with a strong financial position, with $250 million in cash and cash equivalents. The company expects to deliver adjusted EBITDA of over $300 million in 2026, enabling it to invest in its pipeline and reduce debt. With a focus on maximizing LINZESS and advancing aproglutide, Ironwood is poised for long-term success.

3. NewsRoom

Card image cap

Best 5 Small-Cap Stocks With Forward EPS Growth Above 125%

Apr -13

Source: seekingalpha.com

Card image cap

IRWD Stock Down 14% in a Month: Time to Buy, Sell or Hold the Stock?

Mar -30

Source:

Card image cap

Insider Selling: Ironwood Pharmaceuticals (NASDAQ:IRWD) Director Sells $20,528,940.00 in Stock

Mar -20

Source: defenseworld.net

Card image cap

IRWD vs. PBYI: Which Small-Cap Biotech Stock Is a Better Buy?

Mar -12

Source: zacks.com

Card image cap

Will Linzess Continue to Aid IRWD's Top Line in 2026 After a Soft Q4?

Mar -06

Source: zacks.com

Card image cap

Ironwood Pharmaceuticals to Participate in The Citizens Life Sciences Conference

Mar -04

Source: businesswire.com

Card image cap

Ironwood Pharmaceuticals: Downgrading On Pipeline Setback And Extended Timeline For Apraglutide

Feb -26

Source: seekingalpha.com

Card image cap

IRWD Q4 Earnings and Revenues Fall Shy of Estimates, Stock Tanks

Feb -26

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

Stock-Card
Embecta

A-Score: 5.0/10

Value: 9.1

Growth: 1.9

Quality: 6.4

Yield: 7.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Amphastar Pharmaceuticals

A-Score: 4.6/10

Value: 6.7

Growth: 8.9

Quality: 6.3

Yield: 0.0

Momentum: 1.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Dynavax

A-Score: 4.6/10

Value: 6.1

Growth: 5.8

Quality: 4.6

Yield: 0.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Ironwood Pharmaceuticals

A-Score: 3.8/10

Value: 7.0

Growth: 4.3

Quality: 7.9

Yield: 0.0

Momentum: 3.0

Volatility: 0.7

1-Year Total Return ->

View Full Report
Stock-Card
PetIQ

A-Score: 3.7/10

Value: 3.7

Growth: 7.7

Quality: 3.1

Yield: 0.0

Momentum: 6.0

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
Zomedica

A-Score: 3.4/10

Value: 8.4

Growth: 5.8

Quality: 5.0

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.04$

Current Price

4.04$

Potential

0.00%

Expected Cash-Flows