Ironwood's third-quarter 2013 loss of $0.51 per share compared
unfavorably with the year-ago earnings of $0.42 per share. Results
were primarily hurt by lower revenues. However, the sales ramp of
the company's sole marketed product, Linzess, launched in Dec 2012,
has been promising so far. We are encouraged by Ironwood's efforts
to expand Linzess' label to include other indications such as
opioid-induced constipation. We are also positive on Ironwood's
partnerships with big pharma companies for the development and
commercialization of Linzess in different territories. We believe
that the company is well positioned to gain share in the IBS-C
market. Based on these factors, we continue to view the current
price as an attractive entry point for long-term investors.
Cambridge, Mass. based Ironwood Pharmaceuticals, Inc. is focused
on the development and commercialization of treatments addressing a
variety of diseases including gastrointestinal diseases, central
nervous system (CNS) disorders, allergic conditions and
The company's sole marketed drug, Linzess (linaclotide), was
launched in Dec 2012 in collaboration with Forest Laboratories,
Inc. for patients suffering from irritable bowel syndrome with
constipation (IBS-C) or chronic idiopathic constipation (CIC). The
drug was approved by the U.S. Food and Drug Administration (FDA) in
Aug 2012. Linzess is approved in the EU under the trade name
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 with
additional launches slated for 2014.
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 linaclotide in China, Hong Kong and Macau.
Ironwood has retained the right to develop Linzess in other
territories and is looking for partnership in these regions.
Revenues in 2012 jumped 128.1% from the previous year to $150.2
million. Revenues primarily consisted of collaborative revenues
that included $65.0 million from Forest and $24.7 million from
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