Ironwood Pharmaceuticals, Inc.
- Open
- 4.25
- Day high
- 4.32
- Day low
- 4.12
- Prev close
- 4.30
- Volume
- 2.5M
- Mkt cap
- $693M
- P/E (TTM)
- 6.6
- EPS (TTM)
- $0.64
- P/B
- -3.2
- P/S
- 1.9
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$80K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions accumulating (13F)
Ironwood Pharmaceuticals, Inc. (IRWD) is a Healthcare company listed on NASDAQ. The stock is up 500% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
Ironwood Pharmaceuticals, Inc. (IRWD) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
IRWD earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.07 | $0.24 | +242.9% | $107M | +15.6% |
| Aug 7, 2025 | $-0.02 | $0.14 | +800.0% | $85M | +9.5% |
| May 7, 2025 | $-0.05 | $-0.14 | -180.0% | $41M | -42.1% |
| Feb 27, 2025 | $0.10 | $0.02 | -80.0% | $91M | +35.1% |
| Nov 7, 2024 | $0.08 | $0.02 | -75.0% | $92M | -1.0% |
| Aug 8, 2024 | $0.15 | $-0.01 | -103.6% | $94M | -11.8% |
| May 9, 2024 | $0.18 | $-0.02 | -111.1% | $75M | -29.2% |
| Feb 15, 2024 | $0.21 | $-0.01 | -104.8% | $118M | +0.1% |
| Nov 9, 2023 | $0.16 | $0.09 | -43.8% | $114M | +0.8% |
| May 4, 2023 | $0.24 | $0.25 | +4.2% | $104M | +3.6% |
| Feb 16, 2023 | $0.27 | $0.27 | +0.0% | $107M | -0.8% |
| Nov 3, 2022 | $0.27 | $0.28 | +3.7% | $109M | -0.5% |
IRWD insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 17, 2026 | McHugh Juliedirector | Grant | 63,481 | — |
| Jun 17, 2026 | Kessler Marla Ldirector | Grant | 63,481 | — |
| Jun 17, 2026 | Currie Mark Gdirector | Grant | 63,481 | — |
| Jun 17, 2026 | Shepard Jaydirector | Grant | 63,481 | — |
| Jun 17, 2026 | DENNER ALEXANDER Jdirector | Grant | 63,481 | — |
| Jun 17, 2026 | Duane Jon Rdirector | Grant | 63,481 | — |
| Jun 17, 2026 | DENNER ALEXANDER Jdirector | Grant | 4,065 | — |
| Jun 17, 2026 | McHugh Juliedirector | Sell | 21,571 | $3.73 |
| Jun 17, 2026 | Moukheibir Catherinedirector | Grant | 63,481 | — |
| May 21, 2026 | Silver Ronaldofficer: PFO & PAO | Grant | 25,000 | — |
| Mar 17, 2026 | DENNER ALEXANDER Jdirector | Sell | 6,725,000 | $3.05 |
| Mar 17, 2026 | DENNER ALEXANDER Jdirector | Grant | 4,451 | — |
| Mar 17, 2026 | DENNER ALEXANDER Jdirector | Sell | 5,800 | $3.31 |
| Mar 12, 2026 | John Minardoofficer: Chief Legal Officer | Grant | 136,612 | — |
| Mar 12, 2026 | MCCOURT Thomas Adirector, officer: Chief Executive Officer | Grant | 409,836 | — |
Source: IRWD SEC Form 4 filings, latest Jun 17, 2026. For informational purposes only — not investment advice.
See the full IRWD insider & 13F page →Ironwood Pharmaceuticals, Inc. company profile
Overview
Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is a Boston-based healthcare company founded in 1998 that specializes in developing and commercializing treatments for gastrointestinal disorders. Originally incorporated as Microbia, Inc., the company changed its name to Ironwood Pharmaceuticals in 2008 and went public in 2010. The company has evolved from a research-focused biotechnology firm into a commercial-stage pharmaceutical company with a primary focus on gastrointestinal therapeutics, anchored by its flagship product LINZESS and a promising pipeline candidate apraglutide for rare diseases.
Business
Ironwood Pharmaceuticals operates in the specialty pharmaceutical industry, specifically focusing on gastrointestinal (GI) disorders. The gastrointestinal therapeutic area addresses conditions affecting the digestive system, including functional bowel disorders that cause significant patient discomfort and reduced quality of life. The company's core commercial product is LINZESS (linaclotide), a prescription medication that treats two common digestive conditions: irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation (CIC). LINZESS works as a guanylate cyclase type-C agonist, which means it activates specific receptors in the intestine to help normalize bowel function and reduce abdominal pain. The drug is marketed under different brand names globally - LINZESS in the United States and Mexico, and CONSTELLA in Canada and the European Union. This product represents the vast majority of Ironwood's current revenue. The company's pipeline includes apraglutide, an investigational treatment for short bowel syndrome (SBS), a rare condition where patients cannot absorb enough nutrients from food due to insufficient functioning small intestine. Apraglutide is designed as a once-weekly injection that could potentially reduce patients' dependence on intravenous nutrition support. Additionally, Ironwood has been developing other experimental treatments including CNP-104 for primary biliary cholangitis and IW-3300 for visceral pain conditions, though some programs have been discontinued to focus resources. Based on recent financial data, LINZESS-related revenue accounts for approximately 85-90% of total company revenue, making it heavily dependent on this single product's commercial success.
Revenue model
Ironwood generates revenue primarily through pharmaceutical product sales and licensing arrangements. The company operates under a hybrid business model combining direct commercial sales with strategic partnerships. For LINZESS, Ironwood receives revenue through collaborative arrangements with major pharmaceutical partners including AbbVie, AstraZeneca, and Astellas Pharma. In the United States, Ironwood shares profits from LINZESS sales with AbbVie under a co-commercialization agreement, receiving both direct revenue from sales and collaboration revenue from the partnership. The company reported LINZESS U.S. net sales of $916 million in 2024, with Ironwood's share being approximately $260-290 million. Internationally, licensing partners pay Ironwood royalties and milestone payments for LINZESS sales in their respective territories. The company's paying customers are primarily healthcare payers including commercial insurance companies, Medicare, and Medicaid programs, who reimburse pharmacies and healthcare providers for prescribed medications. Patients typically pay copayments or deductibles depending on their insurance coverage. Several factors significantly impact Ironwood's profit margins. Pricing pressures represent the most significant headwind, particularly from increased Medicaid utilization which typically involves higher rebates and lower net pricing. The Medicare Part D redesign and various state-level formulary changes also create pricing challenges. Patent protection is crucial for maintaining margins, as generic competition would dramatically reduce pricing power. Marketing and promotional expenses directly affect profitability, with the company balancing investment in demand generation against margin optimization. Regulatory changes such as the AMCAP repeal legislation have created uncapped rebate obligations that pressure net pricing. Conversely, factors that could improve margins include successful market expansion into new patient populations, improved payer mix toward commercial insurance, and operational efficiencies in manufacturing and distribution.
Competitive moat
Ironwood's competitive moat is moderate but narrowing, primarily built around patent protection and specialized expertise in gastrointestinal drug development. The company's strongest defensive position comes from LINZESS's patent protection, which provides temporary exclusivity in treating IBS-C and chronic constipation. This regulatory moat is reinforced by the drug's established clinical efficacy, broad payer coverage, and strong physician familiarity developed over years of commercial presence. The company has developed specialized knowledge in guanylate cyclase agonist mechanisms and gastrointestinal drug development, which creates some technical barriers for competitors. LINZESS has achieved market leadership in its therapeutic categories, benefiting from first-mover advantages and established relationships with gastroenterologists and primary care physicians. However, this moat faces significant vulnerabilities. Patent expiration represents the most critical threat, as generic competition could eliminate most of LINZESS's pricing power within years. The gastrointestinal therapeutic space attracts ongoing research and development from larger pharmaceutical companies with greater resources. Additionally, Ironwood's heavy dependence on a single product makes it particularly vulnerable to competitive threats, regulatory changes, or shifts in treatment paradigms. The company's attempt to diversify through apraglutide development in the rare disease space of short bowel syndrome could potentially create a stronger moat due to the smaller patient population and higher barriers to entry in rare diseases. However, this remains unproven commercially. Overall, while Ironwood maintains a defensible position today, its moat is under pressure from patent cliffs and limited product diversification, making it vulnerable to both competitive and regulatory disruption.
Risks & safety
Ironwood presents a moderate margin of safety with mixed financial health indicators requiring careful monitoring. **Cash Position and Solvency:** - Strong liquidity with $108 million in cash and short-term investments as of Q1 2025 - Positive free cash flow generation of approximately $103 million in 2024 - Current ratio of 3.34x indicates solid short-term liquidity - However, total liabilities of $661 million significantly exceed total assets of $327 million, creating negative book value **Debt and Financial Structure:** - Debt-to-equity ratio of -1.79x reflects the negative equity position - Company has been actively managing debt, repaying portions of credit facilities - Operating cash flow remains positive at $20 million in Q1 2025 **Valuation Metrics:** - Trading at extremely low absolute price levels (under $1 per share) - Negative price-to-book ratio due to negative equity - EV/EBITDA of approximately 12x based on 2024 performance - Price-to-earnings ratios are volatile due to fluctuating profitability **Other Considerations:** - Heavy dependence on single product (LINZESS) creates concentration risk - Facing ongoing pricing pressures from payer mix shifts - Patent cliff concerns for core product - Pipeline development requires continued investment with uncertain outcomes
Recent development
Over the past few years, Ironwood has undergone significant strategic transformation, shifting from a diversified pipeline company to a focused organization centered on maximizing LINZESS profitability while preparing for the potential launch of apraglutide. The company's most significant recent move was the acquisition of VectivBio in 2023, which brought apraglutide into its pipeline and positioned Ironwood in the rare disease space of short bowel syndrome treatment. The company has strategically streamlined its pipeline by discontinuing several development programs including CNP-104 for primary biliary cholangitis and IW-3300 for visceral pain conditions, allowing it to concentrate resources on apraglutide development. This focus has led to successful completion of the Phase III STARS trial for apraglutide, with 27 patients achieving enteral autonomy, and the company expects to complete its New Drug Application (NDA) submission by Q3 2025. For LINZESS, Ironwood has shifted toward profit maximization strategies rather than pure growth, recognizing the mature nature of the product and approaching patent expiration. The company has reduced in-person promotional activities while maintaining consumer advertising, restructured its sales approach, and focused on optimizing net pricing through careful payer contract management. Additionally, LINZESS received FDA approval for pediatric functional constipation in patients aged 6-17, expanding its addressable market. The company has also undertaken significant organizational restructuring, reducing its workforce and operational footprint to align with its focused strategy. This includes optimizing its commercial infrastructure to support both the mature LINZESS franchise and preparation for apraglutide's potential launch, including development of disease awareness programs and patient support services for the short bowel syndrome community.
IRWD company profile · for informational purposes only — not investment advice.
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