Ironwood Pharma (IRWD) AI Stock Analysis

• Market Cap: $311.87M
• Dividend Yield: N/A
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -10.42%
• EPS Growth: N/A
• Country: US
• Employees: 253
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.23
• Shares Outstanding: 162,434,130
• 10 Day Avg. Volume: 1,975,296
• 30 Day Avg. Volume: 1,437,330
• PEG Ratio: -8.00
• Price to Book (P/B): -2.34
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 6.82
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $4.00 ▲(95.12% Upside)

Ironwood Pharma's overall stock score is primarily influenced by its financial performance challenges, including negative profitability and high leverage. The technical analysis shows strong bullish momentum, but the overbought conditions could pose a risk. Valuation is moderate, with a P/E ratio of 25, but the lack of a dividend yield limits immediate income potential. Addressing financial stability issues is crucial for long-term growth.

Positive Factors

Product Expansion

The FDA approval for pediatric use expands Linzess's market, potentially increasing revenue and reinforcing Ironwood's position in gastrointestinal treatments.

Revenue Growth

The strong Q3 performance and raised financial guidance indicate robust demand and pricing power, enhancing Ironwood's growth prospects.

Pipeline Development

Progressing to a Phase 3 trial for apraglutide shows commitment to pipeline expansion, potentially diversifying revenue sources and enhancing long-term growth.

Negative Factors

Declining Revenue

Ongoing revenue decline and profitability issues, coupled with high leverage, threaten financial stability and long-term growth potential.

High Leverage

High leverage and negative equity pose financial risks, limiting flexibility and potentially impacting future investment and growth opportunities.

Free Cash Flow Decline

The decline in free cash flow growth indicates potential cash management issues, affecting Ironwood's ability to invest in growth and manage debt.

Ironwood Pharma Business Overview & Revenue Model

Company Description

Ironwood Pharmaceuticals, Inc. is a biotechnology company focused on the development and commercialization of innovative therapies for gastrointestinal diseases. The company primarily operates in the biopharmaceutical sector, with a strong emphasis on enhancing the quality of life for patients suffering from conditions such as irritable bowel syndrome and chronic idiopathic constipation. Ironwood's core products include Linzess (linaclotide), a prescription medication that promotes intestinal motility and alleviates abdominal discomfort associated with these conditions.

How the Company Makes Money

Ironwood Pharmaceuticals generates revenue primarily through the sales of its flagship product, Linzess, which is marketed in collaboration with AbbVie. The company earns royalties from its partner on sales of Linzess, in addition to receiving milestone payments tied to sales performance. Other revenue streams may include licensing agreements and collaborations that provide upfront payments and development milestones. The company's focus on expanding its product pipeline and potential new indications for existing therapies also contributes to its earnings potential.

Ironwood Pharma Financial Statement Overview

Summary

Ironwood Pharma faces several financial challenges, including declining revenues, negative profitability, and high leverage. While the company maintains a strong gross profit margin and positive operating cash flow, the negative equity and substantial debt levels are concerning. Addressing these issues is crucial for improving financial stability and long-term growth prospects.

Income Statement

Ironwood Pharma's income statement shows a mixed performance. The TTM data reveals a negative net profit margin, indicating losses, and a declining revenue growth rate of -2.88%. The gross profit margin remains strong at 90%, but the EBIT and EBITDA margins have decreased compared to previous years. The company needs to address its declining revenues and profitability to improve its financial health.

Balance Sheet

The balance sheet presents significant challenges, with a negative stockholders' equity and a high debt-to-equity ratio of -1.94 in the TTM period. This indicates financial instability and potential solvency issues. The return on equity is slightly positive in the TTM, but the negative equity and high leverage pose substantial risks to the company's financial stability.

Cash Flow

The cash flow statement shows a significant decline in free cash flow growth at -61.82% in the TTM period. However, the operating cash flow remains positive, and the free cash flow to net income ratio is nearly 1, suggesting efficient cash generation relative to net income. Despite the decline in free cash flow growth, the company maintains a reasonable cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	338.99M	351.41M	442.74M	410.60M	413.75M	389.52M
Gross Profit	311.56M	343.86M	436.59M	409.18M	343.35M	386.39M
EBITDA	146.90M	97.73M	197.41M	261.44M	233.74M	141.90M
Net Income	28.55M	880.00K	-1.00B	175.06M	528.45M	106.18M
Balance Sheet
Total Assets	396.06M	350.91M	471.07M	1.10B	1.13B	559.24M
Cash, Cash Equivalents and Short-Term Investments	140.41M	88.56M	92.15M	656.20M	620.13M	364.30M
Total Debt	598.24M	599.48M	715.54M	415.92M	475.80M	453.70M
Total Liabilities	660.22M	652.24M	817.37M	448.14M	521.02M	496.60M
Stockholders Equity	-264.16M	-301.33M	-346.30M	652.38M	605.91M	62.64M
Cash Flow
Free Cash Flow	67.65M	103.41M	183.15M	273.63M	261.63M	166.99M
Operating Cash Flow	67.68M	103.55M	183.43M	273.76M	261.89M	168.84M
Investing Cash Flow	-35.00K	-142.00K	-1.03B	-136.00K	-265.00K	-1.84M
Financing Cash Flow	-14.79M	-106.97M	277.16M	-237.55M	-4.55M	18.55M

Ironwood Pharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRWD, the sentiment is Positive. The current price of 2.05 is below the 20-day moving average (MA) of 3.22, below the 50-day MA of 2.25, and above the 200-day MA of 1.32, indicating a bullish trend. The MACD of 0.42 indicates Positive momentum. The RSI at 62.51 is Neutral, neither overbought nor oversold. The STOCH value of 67.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRWD.

Ironwood Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COLL	71 Outperform	$1.51B	29.82	22.96%	―	26.34%	-32.79%
DVAX	70 Outperform	$1.28B	―	-7.14%	―	26.73%	-310.39%
PCRX	69 Neutral	$1.03B	53.78	2.90%	―	3.14%	―
ANIP	64 Neutral	$1.84B	50.15	7.83%	―	48.87%	―
IRWD	54 Neutral	$311.87M	―	―	―	-10.42%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVO	46 Neutral	$1.12B	―	-17.46%	―	-1.19%	5.06%

Ironwood Pharma Corporate Events

Ironwood Pharma’s LINZESS® Price Set by HHS

On November 25, 2025, the U.S. Department of Health and Human Services announced the ‘Maximum Fair Price’ for LINZESS® (linaclotide) as part of the Inflation Reduction Act of 2022. The new Medicare net price, effective January 1, 2027, will be $136 for a 30-day supply, aligning with Ironwood Pharmaceuticals’ expectations.

Ironwood Pharma Board Member Resigns for New Role

On October 7, 2025, Andrew Dreyfus announced his resignation from the Board of Directors of Ironwood Pharmaceuticals, Inc., effective November 1, 2025. His departure is due to his new role as President and CEO of the National Institute for Health Care Management Foundation and is not related to any disagreements with Ironwood Pharmaceuticals. The company expressed gratitude for his contributions during his tenure.