Ironwood Pharma (IRWD) AI Stock Analysis

• Market Cap: $100.65M
• Dividend Yield: N/A
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 85.7
• Beta (1Y): 0.50
• Revenue Growth: -23.18%
• EPS Growth: 97.12%
• Country: US
• Employees: 253
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.23
• Shares Outstanding: 161,819,850
• 10 Day Avg. Volume: 2,852,943
• 30 Day Avg. Volume: 2,749,049
• PEG Ratio: <0.01
• Price to Book (P/B): -0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.85
• Price Target Upside: 41.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 47 Neutral
• Price Target: $0.50 ▼(-16.67%Downside)

Ironwood Pharma's overall stock score is low due to significant financial challenges, including declining revenues, profitability issues, and a debt-laden balance sheet. The technical indicators suggest bearish momentum, and the valuation is unattractive. While the earnings call highlighted potential growth opportunities, concerns about pricing and liquidity, along with the risk of Nasdaq delisting, weigh heavily on the stock's outlook.

Positive Factors

EBITDA Guidance

IRWD also raised FY25 Adjusted EBITDA guidance by ~$20M to $105M+ driven by expectation of lower commercial spend related to the Apra launch.

Financial Guidance

IRWD stated they remain on track to meet FY25 Linzess guidance.

Prescription Demand

Prescription demand growth continues to be strong with IRWD highlighting 8% y/y volume growth in 1Q25.

Negative Factors

Debt and Revenue 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.

Drug Development Delays

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

Generic Competition

The company's primary cash flow source, collaboration revenue from Linzess, faces reimbursement headwinds and will encounter generic competition in 2029.

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 Pharmaceuticals generates revenue primarily through the sales of its flagship product, LINZESS, which it markets in collaboration with Allergan, now a part of AbbVie. The company earns a significant portion of its income from product sales in the United States, leveraging its co-promotion agreement with Allergan. Additionally, Ironwood receives royalties from out-licensed sales of linaclotide in other territories, contributing to its global revenue streams. The company's earnings are also supported by milestone payments and licensing fees from partnerships and collaborations aimed at expanding the reach and applications of its GI therapies.

Ironwood Pharma Financial Statement Overview

Summary

Ironwood Pharma demonstrates operational recovery with improved profitability and cash flow generation. However, significant financial risks remain due to high leverage and negative equity, which could impact future growth and financial stability. Continued focus on revenue growth and equity improvement is essential to mitigate existing financial risks.

Income Statement

The income statement shows a recovery in profitability with a TTM net income of $24.98 million compared to a significant loss in the previous year. Gross profit margin is strong at 99.6%, indicating effective cost management. However, revenue has declined from $442.7 million to $378.4 million, reflecting a negative growth trend. The EBIT margin has improved to 28.7% TTM from a negative margin last year, showing operational improvements but highlighting previous volatility.

Balance Sheet

The balance sheet reveals significant leverage issues with a negative stockholders' equity of $311.3 million TTM, resulting in a concerning debt-to-equity ratio. Total liabilities exceed total assets, indicating financial instability. The equity ratio is negative, and the company is reliant on debt financing, posing risks in the event of interest rate increases or market downturns.

Cash Flow

Cash flow analysis shows strong operating cash flow of $124.2 million TTM, which is robust compared to net income, illustrating good cash generation capability. Free cash flow is positive and stable, although lower than previous periods, indicating efficient cash management. The operating cash flow to net income ratio is favorable, suggesting healthy cash conversion from profits.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
378.42M	442.74M	410.60M	413.75M	389.52M	428.41M
	Gross Profit
376.89M	337.95M	409.18M	412.23M	386.39M	404.54M
	EBIT
108.55M	-945.43M	250.34M	232.26M	142.94M	120.12M
	EBITDA
106.14M	-924.86M	261.44M	233.33M	141.90M	101.13M
	Net Income Common Stockholders
24.98M	-1.00B	175.06M	528.45M	106.18M	-15.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
248.33M	92.15M	656.20M	620.13M	362.56M	177.02M
	Total Assets
333.51M	471.07M	1.10B	1.13B	559.24M	402.75M
	Total Debt
177.32M	715.54M	415.92M	475.80M	453.70M	431.22M
	Net Debt
103.02M	623.38M	-240.29M	-144.33M	91.14M	254.20M
	Total Liabilities
244.96M	817.37M	448.14M	521.02M	496.60M	496.00M
	Stockholders Equity
88.55M	-346.30M	652.38M	605.91M	62.64M	-93.25M
Cash Flow		Free Cash Flow
123.82M	183.15M	273.63M	261.63M	166.99M	3.54M
	Operating Cash Flow
124.17M	183.43M	273.76M	261.89M	168.84M	10.72M
	Investing Cash Flow
-4.33M	-1.03B	-136.00K	-265.00K	-1.84M	-11.14M
	Financing Cash Flow
-142.99M	277.16M	-237.55M	-4.55M	18.55M	-1.19M

Ironwood Pharma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRWD, the sentiment is Negative. The current price of 0.6 is below the 20-day moving average (MA) of 0.64, below the 50-day MA of 0.89, and below the 200-day MA of 2.90, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 38.15 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRWD.

Ironwood Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DERM	62 Neutral	$167.73M	―	-48.14%	―	-29.69%	-105.88%
CPIX	59 Neutral	$85.43M	―	-11.67%	―	5.82%	59.86%
Sector *	53 Neutral	$5.25B	3.24	-45.38%	2.81%	16.79%	-0.06%
ASRT	53 Neutral	$62.89M	―	-25.19%	―	-16.23%	91.83%
IRWD	47 Neutral	$100.65M	85.74	-8.02%	―	-23.18%	97.12%
AQST	44 Neutral	$315.86M	―	77.48%	―	5.29%	-37.31%
ESPR	40 Underperform	$182.07M	―	23.44%	―	12.99%	17.78%

Ironwood Pharma Corporate Events

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.

The most recent analyst rating on (IRWD) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Ironwood Pharma stock, see the IRWD Stock Forecast page.

Ironwood Pharma Faces Nasdaq Compliance Deadline

Ironwood Pharmaceuticals announced it received a notification from Nasdaq on March 21, 2025, due to a delay in filing its 2024 Annual Report, which led to non-compliance with Nasdaq’s listing rules. The company has until May 20, 2025, to submit a compliance plan, with a potential extension to September 1, 2025, to file the report. The notice does not immediately affect the company’s Nasdaq listing, and Ironwood plans to file the report promptly to regain compliance.