Ironwood Pharma (IRWD) AI Stock Analysis

• Market Cap: $660.48M
• Dividend Yield: N/A
• Average Volume (3M): 5.34M
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.64
• 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: 162,678,650
• 10 Day Avg. Volume: 11,494,038
• 30 Day Avg. Volume: 5,341,485
• 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: $6.23
• Price Target Upside: 56.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $5.00 ▲(25.63% Upside)

The score is mainly held back by balance-sheet risk (high debt and negative equity) despite improved TTM profitability and positive free cash flow. Technicals are constructive with price above major moving averages, but RSI indicates stretched momentum. Valuation is a headwind with a higher P/E and no dividend support, partially offset by a positive corporate event that reduces legal uncertainty.

Positive Factors

Positive Free Cash Flow

TTM free cash flow of roughly $67.7M demonstrates durable internal cash generation that can fund operations, R&D and trial starts without immediate reliance on equity raises. Consistent FCF supports debt covenant compliance and strategic flexibility over the next several quarters.

Flagship Product Revenue Base

LINZESS, marketed via partner collaboration, provides a stable, high-margin revenue base; management expects higher net sales in 2026 after list-price adjustments. A predictable, flagship cash generator supports margins, funds development and reduces single-period revenue volatility risk.

Pipeline Progress (apr​aglutide)

Regulatory alignment and a planned confirmatory Phase 3 for apraglutide materially advances pipeline de‑risking. A successful Phase 3 would diversify revenue beyond LINZESS, extend the company’s commercial runway and improve long-term value creation prospects.

Negative Factors

High Leverage and Negative Equity

Heavy leverage and negative equity weaken the capital structure, constrain strategic choices and raise refinancing and covenant risks. If operating results soften, interest and principal burdens could force asset sales, restructuring or costly capital raises, limiting resilience.

Top-line Volatility

Revenue inconsistency and a prior-year decline undermine predictability of earnings and cash flow, complicating long-term planning and debt servicing. Structural reliance on a single core product magnifies the business risk if demand or reimbursement dynamics shift.

Increased Royalty and Payment Obligations

The amended Ferring license imposes near-term cash payments and ongoing tiered royalties, which raise the structural cost base for licensed products. Higher royalty burdens reduce long-term margins and free cash flow available for deleveraging or reinvestment.

Ironwood Pharma Business Overview & Revenue Model

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.

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: 3.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 3.98 is above the 20-day moving average (MA) of 3.59, above the 50-day MA of 3.15, and above the 200-day MA of 1.55, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 59.73 is Neutral, neither overbought nor oversold. The STOCH value of 37.90 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
DVAX	73 Outperform	$1.81B	-41.06	-7.14%	―	26.73%	-310.39%
COLL	72 Outperform	$1.44B	29.97	22.96%	―	26.34%	-32.79%
PCRX	69 Neutral	$1.01B	51.40	2.90%	―	3.14%	―
ANIP	66 Neutral	$1.71B	51.73	7.83%	―	48.87%	―
IRWD	58 Neutral	$660.48M	28.95	―	―	-10.42%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVO	46 Neutral	$1.30B	-7.57	-17.46%	―	-1.19%	5.06%

Ironwood Pharma Corporate Events

Ironwood Pharma Resolves Ferring Dispute, Amends License Terms

On December 18, 2025, Ironwood Pharmaceuticals’ subsidiary VectivBio AG amended its exclusive license agreement with Ferring International Center to revise financial and intellectual property terms, including a total payment obligation of $12.5 million—an initial $7.5 million followed by $5 million due by December 31, 2026, subject to possible acceleration—alongside new tiered royalty commitments on net sales of licensed products. Under the revised structure, VectivBio will pay Ferring a high single-digit royalty for seven years following first commercial sale of each licensed product and a reduced low single-digit royalty thereafter until relevant patent coverage expires, while the amendment also clarifies ownership and other IP rights; on the same date, VectivBio, Ironwood and Ferring entered into a settlement and release resolving all claims related to Ferring’s lawsuit in the U.S. District Court for the Eastern District of Texas, removing a legal overhang and providing clearer economic and IP terms around the licensed portfolio.

The most recent analyst rating on (IRWD) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Ironwood Pharma stock, see the IRWD Stock Forecast page.

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.

The most recent analyst rating on (IRWD) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Ironwood Pharma stock, see the IRWD Stock Forecast page.