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Ironwood Pharmaceuticals (IRWD)
:IRWD
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Ironwood Pharma (IRWD) AI Stock Analysis

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Ironwood Pharma

(NASDAQ:IRWD)

Rating:47Neutral
Price Target:
$0.50
▼(-32.43%Downside)
The overall stock score for Ironwood Pharma is primarily impacted by its weak financial performance and poor valuation metrics. The company's technical analysis shows mixed signals, while the negative corporate event regarding Nasdaq compliance further dampens the outlook. Financial improvements and addressing the compliance issue are critical for enhancing the stock's attractiveness.
Positive Factors
Financial Guidance
IRWD also raised FY25 Adjusted EBITDA guidance by approximately $20 million to $105 million plus, driven by expectation of lower commercial spend related to the Apra launch.
Prescription Demand
Prescription demand growth continues to be strong with IRWD highlighting 8% year-over-year volume growth in 1Q25.
Strategic Alternatives
IRWD reiterated that they are exploring strategic alternatives, which is viewed as a necessary step given the balance sheet challenges and delay of the apraglutide launch as the next growth driver.
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
The launch of Apraglutide has been delayed to 2029, reflecting setbacks in the drug's development and approval process.
Stock Rating
The company's stock is downgraded to HOLD due to uncertainty and the need for more clarity on the path forward.

Ironwood Pharma (IRWD) vs. SPDR S&P 500 ETF (SPY)

Ironwood Pharma Business Overview & Revenue Model

Company DescriptionIronwood 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 MoneyIronwood Pharmaceuticals generates revenue primarily through the sale of its flagship product, LINZESS, which is co-promoted in the U.S. with AbbVie. The company receives a share of the net sales from this collaboration, which constitutes the bulk of its income. Additionally, Ironwood earns revenue from royalties and milestone payments associated with licensing agreements for its product in international markets. The collaboration with AbbVie is a significant factor in Ironwood's earnings, providing both a steady revenue stream and an opportunity to expand its market reach.

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
45
Neutral
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
30
Negative
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue317.68M351.41M442.74M410.60M413.75M389.52M
Gross Profit316.69M351.41M337.95M409.18M412.23M382.82M
EBITDA59.52M100.24M-924.87M261.44M233.33M141.90M
Net Income-31.41M880.00K-1.00B175.06M528.45M106.18M
Balance Sheet
Total Assets327.21M350.91M471.07M1.10B1.13B559.24M
Cash, Cash Equivalents and Short-Term Investments108.48M88.56M92.15M656.20M620.13M362.56M
Total Debt599.08M599.48M715.54M415.92M475.80M453.70M
Total Liabilities661.27M652.24M817.37M448.14M521.02M496.60M
Stockholders Equity-334.05M-301.33M-346.30M652.38M605.91M62.64M
Cash Flow
Free Cash Flow78.41M103.41M183.15M273.63M261.63M166.99M
Operating Cash Flow78.52M103.55M183.43M273.76M261.89M168.84M
Investing Cash Flow-121.00K-142.00K-1.03B-136.00K-265.00K-1.84M
Financing Cash Flow-91.41M-106.97M277.16M-237.55M-4.55M18.55M

Ironwood Pharma Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.74
Price Trends
50DMA
0.70
Positive
100DMA
1.01
Negative
200DMA
2.39
Negative
Market Momentum
MACD
0.02
Negative
RSI
51.38
Neutral
STOCH
52.74
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 0.74 is above the 20-day moving average (MA) of 0.72, above the 50-day MA of 0.70, and below the 200-day MA of 2.39, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.38 is Neutral, neither overbought nor oversold. The STOCH value of 52.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRWD.

Ironwood Pharma Risk Analysis

Ironwood Pharma disclosed 45 risk factors in its most recent earnings report. Ironwood Pharma reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We may be unable to successfully integrate the business and personnel of VectivBio, and may not realize the expected benefits and anticipated synergies of such acquisition. Q4, 2023
2.
We cannot give any assurance that apraglutide will be successful in clinical trials, and if successful, will receive regulatory approval, which is necessary before it can be commercialized. Q4, 2023
3.
We may be unable to maintain the benefits associated with orphan drug designation, including market exclusivity, which may harm our business. Q4, 2023

Ironwood Pharma Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$166.56M-48.14%-29.69%-105.88%
56
Neutral
$44.88M-11.67%5.82%59.86%
55
Neutral
$66.18M-25.19%-16.23%91.83%
52
Neutral
$7.52B0.21-63.76%2.30%16.15%0.89%
51
Neutral
$398.31M77.48%5.29%-37.31%
50
Neutral
$235.86M23.44%12.99%17.78%
47
Neutral
$121.74M85.74-8.02%-23.18%97.12%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IRWD
Ironwood Pharma
0.74
-5.74
-88.58%
ASRT
Assertio Therapeutics
0.68
-0.86
-55.84%
ESPR
Esperion
1.18
-1.32
-52.80%
CPIX
Cumberland Pharmaceuticals
3.40
1.94
132.88%
AQST
Aquestive Therapeutics
4.03
1.26
45.49%
DERM
Journey Medical Corp
7.41
1.59
27.32%

Ironwood Pharma Corporate Events

Executive/Board ChangesShareholder Meetings
Ironwood Pharma Elects Directors at Annual Meeting
Neutral
Jun 12, 2025

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.

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
Ironwood Pharma Receives Nasdaq Deficiency Letter
Negative
Jun 3, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025