Ironwood Pharma (IRWD) AI Stock Analysis

• Market Cap: $173.80M
• Dividend Yield: N/A
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 85.7
• Beta (1Y): 0.65
• Revenue Growth: -22.98%
• EPS Growth: -173.28%
• Country: US
• Employees: 253
• Sector: Healthcare
• Sector Strength: 53
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.14
• Shares Outstanding: 162,434,130
• 10 Day Avg. Volume: 1,781,285
• 30 Day Avg. Volume: 1,397,849
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.64
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 2.21
• Enterprise Value/Ebitda: 10.50
• 1Y Price Target: $1.00
• Price Target Upside: -15.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 46 Neutral
• Price Target: $1.00 ▼(-15.25% Downside)

Ironwood Pharma's overall stock score is primarily impacted by its challenging financial performance and valuation concerns. The potential delisting risk due to the Nasdaq deficiency letter further exacerbates the negative outlook. While there are some positive technical signals, they are overshadowed by the financial and corporate event risks.

Positive Factors

Financial Performance

Linzess revenues of $248M for 2Q25 appear on track to meet guidance of $800-850M and reflect normalization of gross-to-net accounting fluctuations.

Revenue Guidance

Management expects the rest of the year to show similar strength as 2Q, with guidance for $260-290M total revenue and adjusted EBITDA greater than $105M reiterated.

Negative Factors

Debt Challenges

The high debt load and delay in apraglutide's revenue contribution mean there will likely be no meaningful revenue contribution until after Linzess' loss of exclusivity and debt maturity.

Regulatory Setbacks

An additional confirmatory Phase 3 trial for apraglutide in short bowel syndrome is needed for approval, adding financial uncertainty to the company.

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 generates revenue primarily through the sales of its commercialized products, with Linzess being the most significant contributor to its earnings. The company operates on a revenue model that includes direct product sales, as well as potential royalties and milestone payments from partnerships and collaborations with other pharmaceutical companies. Ironwood has established strategic collaborations to enhance its product pipeline and expand market reach, which can further augment its revenue through shared developments and co-promotion agreements. Additionally, the company may benefit from reimbursement agreements with healthcare providers and payers, which facilitate patient access to its therapies and support revenue growth.

Ironwood Pharma Financial Statement Overview

Summary

Ironwood Pharma faces a challenging financial landscape with declining revenues and profitability issues. The debt-laden balance sheet and negative equity highlight financial risk, while the cash flow provides a silver lining with positive free cash flow. Improvements in revenue generation and equity would be crucial for enhancing long-term financial health.

Income Statement

The income statement reveals a mixed performance for Ironwood Pharma. Despite a high gross profit margin in TTM (99.69%), the company experienced a negative net profit margin (-9.89%) and revenue contraction compared to the previous year (-9.60%). The EBIT margin was moderate at 17.24%, reflecting some operational efficiency, but the negative net income indicates profitability challenges.

Balance Sheet

Ironwood Pharma's balance sheet shows significant financial stress. The company has a negative stockholders' equity (-$334 million) and an alarmingly high debt-to-equity ratio, indicating heavy reliance on debt financing. The equity ratio is negative, which poses a risk to financial stability.

Cash Flow

The cash flow statement is relatively strong, with a positive free cash flow of $78.4 million in TTM, although the free cash flow growth rate is negative when compared to the previous annual period. The operating cash flow to net income ratio is positive, indicating that cash operations are healthier than income figures suggest.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	317.68M	351.41M	442.74M	410.60M	413.75M	389.52M
Gross Profit	286.86M	343.86M	442.74M	409.18M	412.23M	298.32M
EBITDA	60.23M	100.24M	-924.87M	261.44M	233.33M	141.90M
Net Income	-32.34M	880.00K	-1.00B	175.06M	528.45M	106.18M
Balance Sheet
Total Assets	327.21M	350.91M	471.07M	1.10B	1.13B	559.24M
Cash, Cash Equivalents and Short-Term Investments	108.48M	88.56M	92.15M	656.20M	620.13M	362.56M
Total Debt	599.08M	599.48M	715.54M	415.92M	475.80M	453.70M
Total Liabilities	661.27M	652.24M	817.37M	448.14M	521.02M	496.60M
Stockholders Equity	-334.05M	-301.33M	-346.30M	652.38M	605.91M	62.64M
Cash Flow
Free Cash Flow	78.41M	103.41M	183.15M	273.63M	261.63M	166.99M
Operating Cash Flow	78.52M	103.55M	183.43M	273.76M	261.89M	168.84M
Investing Cash Flow	-121.00K	-142.00K	-1.03B	-136.00K	-265.00K	-1.84M
Financing Cash Flow	-91.41M	-106.97M	277.16M	-237.55M	-4.55M	18.55M

Ironwood Pharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.18 is above the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.81, and below the 200-day MA of 1.93, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 68.25 is Neutral, neither overbought nor oversold. The STOCH value of 84.84 is Negative, 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
ESPR	60 Neutral	$411.31M	―	23.44%	―	-3.48%	36.57%
ASRT	58 Neutral	$75.50M	―	-38.40%	―	-11.42%	89.01%
DERM	55 Neutral	$172.35M	―	-57.22%	―	-27.40%	-475.41%
AQST	54 Neutral	$465.75M	―	77.48%	―	-24.38%	-94.72%
CPIX	53 Neutral	$46.08M	―	-10.79%	―	11.34%	71.13%
Sector *	51 Neutral	$7.77B	-0.12	-39.78%	2.21%	22.68%	-1.42%
IRWD	46 Neutral	$173.80M	85.74	-8.02%	―	-22.98%	-173.28%

Ironwood Pharma Corporate Events

Ironwood Pharma Elects Directors at Annual Meeting

On June 10, 2025, Ironwood Pharmaceuticals held its Annual Meeting of Stockholders, where nine directors were elected to serve a one-year term on the board. Additionally, stockholders approved executive compensation and ratified Ernst & Young LLP as the independent public accounting firm for 2025.

Ironwood Pharma Receives Nasdaq Deficiency Letter

On May 28, 2025, Ironwood Pharmaceuticals received a deficiency letter from Nasdaq indicating that its Class A common stock had closed below the $1.00 minimum bid price requirement for 30 consecutive business days. The company has until November 24, 2025, to regain compliance, failing which it may face delisting or need to transfer its listing to the Nasdaq Capital Market. Ironwood intends to monitor its stock price and consider options to meet the requirement, though there is no assurance of success.