Ironwood Pharmaceuticals, Inc. (IRWD) Bundle
A Brief History of Ironwood Pharmaceuticals, Inc.
Ironwood Pharmaceuticals, Inc. was incorporated in Delaware on January 5, 1998, originally as Microbia, Inc. The company changed its name to Ironwood Pharmaceuticals on April 7, 2008. It focuses on the research, development, and commercialization of innovative human therapeutics, particularly in gastrointestinal diseases.
Financial Performance Overview
As of September 30, 2024, Ironwood reported a net income of $3.6 million for the third quarter, compared to a net income of $14.0 million in the same quarter of the previous year. For the nine months ended September 30, 2024, the net loss was approximately $1.4 million, a significant improvement from a net loss of about $1.0 billion during the same period in 2023.
| Period | Net Income (Loss) (in millions) | Collaborative Arrangements Revenue (in millions) | Total Revenues (in millions) |
|---|---|---|---|
| Q3 2024 | 3.6 | 91.6 | 91.6 |
| Q3 2023 | 14.0 | 113.7 | 113.7 |
| 9M 2024 | (1.4) | 260.9 | 260.9 |
| 9M 2023 | (1,000.0) | 325.2 | 325.2 |
Revenue Streams
The majority of Ironwood's revenue is generated from its collaborative arrangements and license agreements, particularly related to the sales of linaclotide, marketed as LINZESS. As of September 30, 2024, collaborative arrangements revenue decreased to $91.6 million, down from $113.7 million in Q3 2023. This decline was largely attributed to a decrease in net profits from LINZESS sales, driven by reduced net pricing and adjustments in sales reserves.
| Period | Collaborative Arrangements Revenue (in millions) | Royalty Revenue (in millions) | Total Collaborative Arrangements Revenue (in millions) |
|---|---|---|---|
| Q3 2024 | 88.9 | 0.5 | 89.4 |
| Q3 2023 | 110.1 | 0.6 | 110.7 |
| 9M 2024 | 252.0 | 2.0 | 254.0 |
| 9M 2023 | 316.5 | 2.1 | 318.5 |
Operational Expenses
For the third quarter of 2024, Ironwood's total operating expenses amounted to $66.0 million, compared to $73.7 million for the same period in 2023. The reduction in expenses is primarily due to decreased research and development costs, which were $29.8 million in Q3 2024, down from $33.0 million in Q3 2023.
| Period | Research and Development Expense (in millions) | Selling, General and Administrative Expense (in millions) | Total Operating Expenses (in millions) |
|---|---|---|---|
| Q3 2024 | 29.8 | 36.1 | 66.0 |
| Q3 2023 | 33.0 | 36.0 | 73.7 |
| 9M 2024 | 86.0 | 110.7 | 199.2 |
| 9M 2023 | 80.4 | 119.6 | 199.2 |
Cash Flow and Liquidity
As of September 30, 2024, Ironwood had cash and cash equivalents of approximately $88.2 million, a decrease from $147.6 million reported for the same period in 2023. The company’s net cash provided by operating activities for the nine months ended September 30, 2024, was $88.3 million, compared to $147.6 million for the same period in 2023.
| Period | Cash and Cash Equivalents (in millions) | Net Cash Provided by Operating Activities (in millions) |
|---|---|---|
| September 30, 2024 | 88.2 | 88.3 |
| September 30, 2023 | 147.6 | 147.6 |
Debt Obligations
As of September 30, 2024, Ironwood had $200 million in aggregate principal amount of convertible notes due in 2026 and $400 million outstanding under its Revolving Credit Facility. The company repaid $200 million of convertible notes in June 2024 and incurred $27.2 million in financing activities during the third quarter of 2024.
| Debt Type | Principal Amount (in millions) | Maturity Date |
|---|---|---|
| 2024 Convertible Notes | — | June 2024 |
| 2026 Convertible Notes | 200.0 | 2026 |
| Revolving Credit Facility | 400.0 | May 2023 |
A Who Owns Ironwood Pharmaceuticals, Inc. (IRWD)
Major Shareholders
As of 2024, the ownership structure of Ironwood Pharmaceuticals, Inc. (IRWD) is comprised of institutional investors, individual shareholders, and insider ownership. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 9.5% | 15,000,000 |
| The Vanguard Group, Inc. | 8.3% | 13,000,000 |
| State Street Corporation | 7.1% | 11,000,000 |
| AbbVie Inc. | 6.0% | 9,400,000 |
| Insider Ownership (Management and Board) | 2.2% | 3,400,000 |
| Other Institutional Investors | 67.9% | 106,000,000 |
Stock Performance
As of September 30, 2024, Ironwood Pharmaceuticals reported a net income of $3.6 million for the third quarter, compared to a net loss of $1.4 million for the same period in 2023. The total revenues for the three months ended September 30, 2024 were approximately $91.6 million, down from $113.7 million in the previous year.
Financial Overview
For the nine months ended September 30, 2024, the company recorded a net loss of $1.4 million, significantly reduced from a net loss of approximately $1.0 billion in the same period in 2023. The accumulated deficit as of September 30, 2024, stood at approximately $1.7 billion.
Collaboration Agreements
Ironwood Pharmaceuticals continues to generate a significant portion of its revenue through collaborative arrangements, primarily with AbbVie. During the nine months ended September 30, 2024, collaborative arrangements revenue amounted to $260.9 million, a decline from $325.2 million in the prior year.
Recent Developments
In June 2023, Ironwood Pharmaceuticals completed a tender offer to acquire 98% of VectivBio Holding AG, a clinical-stage biotechnology company focused on gastrointestinal conditions. This acquisition was funded in part by a $400 million revolving credit facility. The company plans to advance the development of apraglutide, a treatment for rare gastrointestinal diseases.
Insider Transactions
Insider ownership, which includes management and board members, accounts for approximately 2.2% of the total shares outstanding. Recent insider transactions indicate ongoing confidence in the company's strategic direction.
Ironwood Pharmaceuticals, Inc. (IRWD) Mission Statement
Company Overview
Ironwood Pharmaceuticals, Inc. was incorporated in Delaware on January 5, 1998, originally as Microbia, Inc. The company changed its name to Ironwood Pharmaceuticals, Inc. on April 7, 2008, focusing primarily on human therapeutics.
Mission Statement
Ironwood Pharmaceuticals is dedicated to enhancing the lives of patients suffering from gastrointestinal (GI) diseases. The company aims to develop innovative therapies that address unmet medical needs, particularly through its lead product, linaclotide (LINZESS), and its pipeline candidates.
Financial Performance
For the three months ended September 30, 2024, Ironwood reported:
- Total revenues: $91.6 million
- Collaborative arrangements revenue: $91.6 million
- Net income: $3.6 million
In comparison, for the three months ended September 30, 2023, the company reported:
- Total revenues: $113.7 million
- Collaborative arrangements revenue: $113.7 million
- Net income: $15.3 million
Research and Development Focus
Ironwood has dedicated a significant portion of its resources to research and development, especially in the area of GI diseases. The company is advancing several product candidates, including:
- Linaclotide: $4.3 million (Q3 2024) in R&D expenses
- Apraglutide: $20.4 million (Q3 2024) in R&D expenses
- IW-3300: $3.4 million (Q3 2024) in R&D expenses
Financial Overview
As of September 30, 2024, Ironwood's financial position included:
- Total assets: $389.5 million
- Cash and cash equivalents: $88.2 million
- Accumulated deficit: $1.7 billion
- Total stockholders’ deficit: $311.3 million
Recent Developments
In June 2023, Ironwood completed the acquisition of VectivBio Holding AG, which focuses on treatments for rare gastrointestinal conditions. This acquisition was valued at $400 million and aimed at advancing the development of apraglutide.
Table of Recent Financial Performance
| Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $91.6 million | $113.7 million | $(22.1 million) |
| Collaborative Arrangements Revenue | $91.6 million | $113.7 million | $(22.1 million) |
| Net Income | $3.6 million | $15.3 million | $(11.7 million) |
| R&D Expenses - Linaclotide | $4.3 million | $5.1 million | $(0.8 million) |
| R&D Expenses - Apraglutide | $20.4 million | $19.4 million | $1.0 million |
| R&D Expenses - IW-3300 | $3.4 million | $4.1 million | $(0.7 million) |
Future Outlook
Ironwood is focused on maintaining positive cash flows while further developing its product candidates. The company aims to leverage its collaboration with AbbVie for continued revenue generation from LINZESS and to explore new opportunities within its pipeline.
How Ironwood Pharmaceuticals, Inc. (IRWD) Works
Business Overview
Ironwood Pharmaceuticals, Inc. operates primarily in the human therapeutics segment, focusing on the research, development, and commercialization of gastrointestinal (GI) medicines. The company's main product is linaclotide, marketed under the brand name LINZESS, which is used to treat conditions like irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation (CIC).
Financial Performance
For the three months ended September 30, 2024, Ironwood reported a net income of $3.646 million, compared to a net income of $15.321 million for the same period in 2023. For the nine months of 2024, the company reported a net loss of $1.376 million, while the loss for the same period in 2023 was approximately $1.001 billion.
Revenue Breakdown
The majority of Ironwood's revenue is derived from collaborative arrangements related to the sales of LINZESS in the U.S. The revenue from collaborative arrangements for the three months ended September 30, 2024, was $91.592 million, down from $113.739 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues were $260.865 million, compared to $325.182 million in 2023.
| Period | Collaborative Revenue (in thousands) | Net Income (Loss) (in thousands) | Total Revenue (in thousands) |
|---|---|---|---|
| Q3 2024 | $91,592 | $3,646 | $91,592 |
| Q3 2023 | $113,739 | $15,321 | $113,739 |
| 9M 2024 | $260,865 | $(1,376) | $260,865 |
| 9M 2023 | $325,182 | $(1,001,152) | $325,182 |
Expenses
In terms of expenses, Ironwood reported total costs and expenses of $65.956 million for Q3 2024, a decrease from $73.716 million in Q3 2023. For the nine-month period, total expenses were $199.232 million, significantly lower than $1.308 billion in the previous year.
Research and Development
Research and development (R&D) expenses for Q3 2024 were $29.827 million, compared to $32.985 million in Q3 2023. For the nine months ended September 30, 2024, R&D expenses totaled $86.030 million, up from $80.409 million in the previous year.
Cash Flow Analysis
Ironwood's net cash provided by operating activities for the nine months ended September 30, 2024, was $88.335 million, down from $147.593 million in the same period of 2023. The cash used in investing activities was $142,000 for Q3 2024, compared to $22.625 million in Q3 2023.
Balance Sheet Highlights
| Item | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Cash and Cash Equivalents | $88,211 | $92,154 |
| Accounts Receivable, Net | $76,202 | $129,122 |
| Total Assets | $389,519 | $471,073 |
| Total Liabilities | $700,853 | $817,368 |
| Stockholders' Deficit | $(311,334) | $(346,295) |
Market Position and Future Outlook
Ironwood continues to focus on enhancing its market position through its collaboration with AbbVie and pursuing new product candidates. The company aims to maintain positive cash flows driven by increased revenue from LINZESS sales and effective cost management strategies.
How Ironwood Pharmaceuticals, Inc. (IRWD) Makes Money
Revenue Streams
The primary source of revenue for Ironwood Pharmaceuticals, Inc. (IRWD) is derived from collaborative arrangements and license agreements, particularly related to the commercialization of linaclotide, marketed as LINZESS. The company shares profits and losses from LINZESS sales with its partner, AbbVie. For the three months ended September 30, 2024, collaborative arrangements revenue was $91.6 million, a decrease from $113.7 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues were $260.9 million compared to $325.2 million in the prior year.
LINZESS Sales Performance
LINZESS is the leading product for Ironwood, primarily used to treat irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation (CIC). The collaborative revenue from LINZESS sales in the U.S. for the three months ended September 30, 2024, was $88.9 million, down from $110.1 million in 2023. For the nine-month period, revenue was $252.0 million compared to $316.5 million in the previous year.
| Period | Collaborative Revenue (in thousands) | LINZESS U.S. Sales (in thousands) |
|---|---|---|
| Q3 2024 | $91,592 | $88,886 |
| Q3 2023 | $113,739 | $110,089 |
| 9M 2024 | $260,865 | $252,016 |
| 9M 2023 | $325,182 | $316,476 |
Costs and Expenses
Ironwood's operational costs include significant research and development (R&D) expenses, which were $29.8 million for the three months ended September 30, 2024, compared to $33.0 million in 2023. For the nine months, R&D expenses increased to $86.0 million from $80.4 million in the previous year. Additionally, selling, general and administrative expenses remained relatively stable at approximately $36.1 million for Q3 2024, compared to $36.0 million in Q3 2023.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Research and Development | $29,827 | $32,985 | $86,030 | $80,409 |
| Selling, General and Administrative | $36,113 | $36,046 | $110,682 | $119,647 |
Net Income and Loss
For the three months ended September 30, 2024, Ironwood reported a net income of $3.6 million, down from $15.3 million in the same quarter of 2023. The net loss for the nine months ended September 30, 2024, was $1.4 million, a significant improvement from a $1.0 billion loss during the same period in 2023.
| Period | Net Income (Loss) (in thousands) |
|---|---|
| Q3 2024 | $3,646 |
| Q3 2023 | $15,321 |
| 9M 2024 | $(1,376) |
| 9M 2023 | $(1,001,152) |
Cash Flows
Net cash provided by operating activities for the nine months ended September 30, 2024, was $88.3 million, a decrease from $147.6 million in the previous year. Cash used in investing activities was minimal at $142,000 in Q3 2024, compared to $22.6 million in Q3 2023 attributed primarily to the VectivBio acquisition.
| Cash Flow Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Operating Activities | $9,885 | $32,459 | $88,335 | $147,593 |
| Investing Activities | $(16) | $(22,625) | $(142) | $(1,022,130) |
Debt and Financing
As of September 30, 2024, Ironwood had approximately $200.0 million in convertible notes due in 2026 and $400.0 million outstanding under its Revolving Credit Facility. The company had a total stockholders' deficit of approximately $311.3 million.
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Resources:
- Ironwood Pharmaceuticals, Inc. (IRWD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ironwood Pharmaceuticals, Inc. (IRWD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ironwood Pharmaceuticals, Inc. (IRWD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.