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Ironwood Pharma (IRWD)
NASDAQ:IRWD

Ironwood Pharma (IRWD) AI Stock Analysis

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IRWD

Ironwood Pharma

(NASDAQ:IRWD)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
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.

Ironwood Pharma (IRWD) vs. SPDR S&P 500 ETF (SPY)

Ironwood Pharma Business Overview & Revenue Model

Company DescriptionIronwood 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 MoneyIronwood 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 Earnings Call Summary

Earnings Call Date:Feb 27, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong demand growth for LINZESS and promising data for apraglutide, suggesting potential future growth. However, concerns about pricing headwinds from Medicare Part D redesign and cash liquidity tempered the overall outlook.
Q4-2024 Updates
Positive Updates
Apraglutide's Potential for Market Expansion
The data from the STARS Extend study showed that 27 patients achieved enteral autonomy, reinforcing apraglutide's potential as a blockbuster therapy for short bowel syndrome. The NDA submission is expected to be completed by the third quarter of 2025.
LINZESS Demand Growth
LINZESS saw a 12% increase in prescription demand growth in Q4 2024 compared to Q4 2023. For the full year 2024, there was an 11% prescription demand growth year-over-year, and new-to-brand volume growth was 14%.
Financial Performance and Guidance
Ironwood achieved its 2024 financial guidance with $916 million in net sales. The company expects continued strong demand growth for LINZESS in 2025, despite anticipated pricing headwinds.
Debt Reduction Efforts
Ironwood reduced its total debt balance by approximately $115 million in 2024, ending the year with $385 million drawn on its credit facility.
Negative Updates
Pricing Headwinds Due to Medicare Part D Redesign
The redesign of Medicare Part D, which went into effect earlier this year, poses a pricing headwind for LINZESS, potentially impacting revenue despite strong demand.
Cash and Liquidity Concerns
Ironwood ended 2024 with $88.6 million in cash and cash equivalents, which may be seen as limited given the company's debt obligations and the need to fund apraglutide's launch.
Company Guidance
During the Ironwood Pharmaceuticals Fourth Quarter 2024 Investor Update Conference Call, the company provided guidance for the upcoming year. They expect U.S. LINZESS net sales to range between $800 million and $850 million, forecasting high single-digit prescription demand growth despite potential pricing headwinds due to Medicare Part D redesign. Ironwood anticipates total revenue between $260 million and $290 million and adjusted EBITDA, excluding stock-based compensation, to exceed $85 million. The company aims to complete the NDA submission for apraglutide by the third quarter of 2025, with prelaunch activities underway for its potential commercialization. Ironwood reported $916 million in LINZESS net sales for 2024 and projects its cash flows will support the development and launch of apraglutide, with a focus on delivering sustained profits and reducing debt. The company ended 2024 with $88.6 million in cash and cash equivalents and $385 million in debt, having repaid $115 million over the year.

Ironwood Pharma Financial Statement Overview

Summary
Income Statement
45
Neutral
Balance Sheet
30
Negative
Cash Flow
50
Neutral
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Ironwood Pharma Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.05
Price Trends
50DMA
2.68
Positive
100DMA
1.96
Positive
200DMA
1.43
Positive
Market Momentum
MACD
0.15
Positive
RSI
50.14
Neutral
STOCH
9.55
Positive
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 3.50, below the 50-day MA of 2.68, and above the 200-day MA of 1.43, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 9.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRWD.

Ironwood Pharma Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$1.55B30.4022.96%26.34%-32.79%
70
Outperform
$1.28B-7.14%26.73%-310.39%
69
Neutral
$1.13B58.332.90%3.14%
64
Neutral
$1.86B49.507.83%48.87%
54
Neutral
$509.18M20.92-10.42%
46
Neutral
$1.08B-6.02-17.46%-1.19%5.06%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IRWD
Ironwood Pharma
3.23
-1.36
-29.63%
DVAX
Dynavax
11.16
-1.67
-13.02%
PCRX
Pacira Pharmaceuticals
26.02
6.82
35.52%
ANIP
ANI Pharmaceuticals
80.72
26.51
48.90%
EVO
Evotec AG
2.99
-1.47
-32.96%
COLL
Collegium Pharmaceutical
48.84
19.69
67.55%

Ironwood Pharma Corporate Events

Product-Related AnnouncementsRegulatory Filings and Compliance
Ironwood Pharma’s LINZESS® Price Set by HHS
Neutral
Nov 26, 2025

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.

Executive/Board Changes
Ironwood Pharma Board Member Resigns for New Role
Neutral
Oct 10, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 28, 2025