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.
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
Ironwood Pharmaceuticals, Inc. (IRWD): Read the
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