Ironwood Pharmaceuticals, Inc. (IRWD): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
Ironwood reported a loss of $0.38 per share in the first quarter of 2014 narrower than the year-ago loss of $0.87 per share. The Zacks Consensus Estimate was a loss of $0.45 per share. We are positive on Ironwood's efforts to broaden Linzess' label by expanding the targeted patient population and gaining approval for additional indications. Ironwood's partnerships with big pharma companies for the development and commercialization of Linzess in different territories are also encouraging. However, we are concerned about the disappointing top-line phase II data on Linzess released by Astellas. Since Linzess, launched in Dec 2012, is the company's sole marketed product, it is highly dependent on the drug for growth. Based on the above factors we maintain a Neutral recommendation on the stock.

Overview:

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 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 FDA in Aug 2012. Linzess is approved in the EU under the trade name Constella.

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 a partnership in these regions.

Revenues in 2013 fell 84.8% to $22.3 million, reflecting lower collaboration revenues.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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