Ironwood (IRWD) Skyrockets 23% as Govt Price for Linzess Falls Within Expectations

Core Insights - Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) experienced a significant stock price increase of 23.32% to $3.86 following the announcement of a new price for its bowel treatment, Linzess, which met investor expectations [1][3]. Group 1: Price Setting and Regulatory Impact - The US Department of Health and Human Services set the maximum fair price (MFP) for Linzess at $136, effective January 1, 2027 [2][3]. - Linzess was included in the recent government price setting under the Inflation Reduction Act of 2022, aimed at reducing healthcare costs for American senior citizens [3]. Group 2: Financial Performance - Ironwood Pharmaceuticals reported a remarkable increase in net income of 1,013% in Q3, rising to $40.08 million from $3.6 million year-on-year [4]. - Revenues surged by 33.27% to $122.06 million, up from $91.59 million, primarily driven by $119.6 million in US revenues from Linzess [5].