IRWD Stock Rises as Q2 Earnings & Revenues Trump Estimates

Core Insights - Ironwood Pharmaceuticals (IRWD) reported adjusted earnings of 14 cents per share for Q2 2025, surpassing the Zacks Consensus Estimate of a loss of 2 cents, compared to breakeven earnings in the same quarter last year [1][7] - Total revenues for Q2 were $85.2 million, exceeding the Zacks Consensus Estimate of $62 million, although this represents a year-over-year decrease of approximately 9.7% [1][7] - The company's sole marketed product, Linzess, generated net sales of $248 million in the U.S., reflecting a 17% year-over-year increase due to prescription demand growth [4][5] Financial Performance - Ironwood's share of net profit from Linzess sales in the U.S. totaled $85.7 million, a decrease of 6% year-over-year despite higher overall product sales [5][7] - Royalties and other revenues were negative $0.5 million in Q2, down from $3 million in the same quarter last year [8] - Total costs and expenses in Q2 were $39.9 million, down 42.5% from the previous year [8] - Adjusted EBITDA for Q2 was $50.1 million, marking an increase of around 37.3% year-over-year [9] Guidance and Future Outlook - Ironwood maintained its 2025 guidance, expecting total revenues between $260 million and $290 million, with U.S. sales of Linzess projected to be between $800 million and $850 million [10] - The company anticipates delivering an adjusted EBITDA of over $105 million in 2025 [10] Pipeline Developments - Ironwood is developing apraglutide for treating short bowel syndrome with intestinal failure, having initiated a rolling NDA submission to the FDA in January 2025 [11] - A confirmatory phase III study will be required for apraglutide approval, with plans to finalize the study design and align with the FDA in Q4 2025 [12][13] - The company acquired the rights to develop apraglutide following the acquisition of VectivBio in June 2023 [13]