Ironwood reported a loss of $0.27 per share in the fourth quarter
of 2014, narrower than the year-ago loss of $0.43 but wider than
the Zacks Consensus Estimate of a loss of $0.21 per share. Revenues
in the quarter came in at $38.1 million. We are encouraged by
Linzess' uptake rates during the quarter. Ironwood's partnerships
with big pharma companies for the development and commercialization
of Linzess in different territories are also encouraging. Ironwood
is looking to broaden Linzess' label by expanding the targeted
patient population and gaining approval for additional indications.
However, we are concerned about the company's high dependence on
Linzess for growth. Based on the above factors, we maintain a
Neutral recommendation on the stock.
Cambridge, MA-based Ironwood Pharmaceuticals, Inc. is focused on
the development and commercialization of treatments primarily
addressing gastrointestinal diseases.
The company's sole marketed drug, Linzess (linaclotide), was
launched in Dec 2012 in collaboration with Actavis plc for patients
suffering from irritable bowel syndrome with constipation (IBS-C)
or chronic idiopathic constipation (CIC). The drug was approved by
the FDA in Aug 2012. Linzess is approved in the EU under the trade
Ironwood is collaborating with Almirall, S.A. in the EU
including the Commonwealth of Independent States and Turkey for the
drug. The product is available in several EU countries.
Ironwood is also working with its Japanese partner, Astellas
Pharma Inc. for the development of Linzess in Japan, South Korea,
Taiwan, Thailand, the Philippines and Indonesia. AstraZeneca has
partnered Ironwood for the co-development and co-commercialization
of Linzess in China, Hong Kong and Macau.
Ironwood has retained the right to develop Linzess in other
territories and is looking for a partnership in these regions.
Revenues in 2013 fell 84.8% to $22.3 million, reflecting lower
Ironwood Pharmaceuticals, Inc. (IRWD): Read the
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