IRWD Beats on Q3 Earnings & Revenues, Raises 2025 View, Stock Soars

Core Insights - Ironwood Pharmaceuticals (IRWD) reported adjusted earnings of 24 cents per share for Q3 2025, significantly surpassing the Zacks Consensus Estimate of 9 cents and up from 2 cents per share in the same quarter last year [1][6] - Total revenues for Q3 were $122.1 million, exceeding the Zacks Consensus Estimate of $68 million, representing a year-over-year increase of approximately 33.3% [1][6] Financial Performance - Linzess, Ironwood's sole marketed product, generated net sales of $314.9 million in the U.S., a 40% increase year-over-year, driven by improved net pricing and strong demand growth [3] - Total prescription demand for Linzess rose by 12% year-over-year [3] - Ironwood's share of net profit from Linzess sales in the U.S. amounted to $119.6 million, reflecting a 35% year-over-year increase [4] - The company recorded adjusted EBITDA of $81.8 million in Q3, showing a significant year-over-year increase [9] Guidance and Outlook - Ironwood raised its 2025 revenue guidance to a range of $290-$310 million, up from the previous guidance of $260-$290 million [10] - U.S. sales of Linzess are now expected to be between $860-$890 million, compared to the earlier projection of $800-$850 million [10] - The adjusted EBITDA forecast for 2025 has been increased to over $135 million, up from the previous expectation of more than $105 million [11] Product Developments - The FDA approved Linzess for the treatment of irritable bowel syndrome with constipation (IBS-C) in patients aged seven years and older, making it the first and only drug approved for this indication in the specified age group [12] - Ironwood is developing apraglutide, a next-generation GLP-2 analog, for treating patients with short bowel syndrome who are dependent on parenteral support [13][14] - The company plans to initiate a confirmatory phase III study for apraglutide in the first half of 2026, pending alignment with the FDA [14] Partnerships - Ironwood has agreements with Astellas Pharma and AstraZeneca for the development and commercialization of Linzess in Japan and China, respectively, with both companies required to pay royalties on net revenues [7]