olivLaw · US equity research
Ironwood Pharmaceuticals, Inc. IRWD
Pharmaceutical Preparations · SIC 2834 · Vertical: Pharmaceutical Preparations (SIC 2834)
Ironwood Pharmaceuticals is a biotechnology company developing and commercializing therapies for gastrointestinal and rare diseases, with LINZESS as its main product, sold in the United States together with partner AbbVie. The company reported strong LINZESS sales growth in the second quarter of 2026, and its future depends largely on the confirmatory Phase III study of apraglutide, whose results are awaited, and on U.S. pricing pressures.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 05 Nov 2026, Ironwood Pharmaceuticals, Inc. (IRWD) stock was 4.03 USD (+6.90% on the day), with market capitalisation 667.2 m USD, P/E 4.5 on diluted EPS of 0.90 USD over the last 12 months, beta 1.23, 52-week range 1.92–5.39 USD. Latest reported quarter (Q3 2026): revenue of 133.0 m USD (+9.0% YoY), net income of 59.8 m USD (+49.3% YoY), diluted EPS 0.36 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 61.2
- strong (55–70)
- Bollinger (20, 2)
- 3.33 – 3.90
- above the upper band · %B 1.23 · band width 15.8%
- SMA 50 / 200
- 3.92 / 3.97
- mixed trend
- MACD (12, 26, 9)
- -0.05 / -0.11
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +11.0% | −5.9% | +17.0 pp | — |
| 3 months | −5.4% | −4.6% | −0.8 pp | — |
| 6 months | −3.4% | +0.2% | −3.6 pp | — |
| Year to date | +19.6% | +7.4% | +12.2 pp | — |
| 1 year | +95.6% | +8.2% | +87.4 pp | +13.7% |
| 3 years | −56.2% | +68.4% | −124.6 pp | +15.7% |
| 5 years | −68.8% | +56.5% | −125.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 90.5 m | 41.1 m | 85.2 m | 122.1 m | 47.7 m | 106.5 m | 113.0 m | 133.0 m |
| Research & development | 25.4 m | 27.4 m | 23.4 m | 22.5 m | 21.9 m | 21.9 m | 22.4 m | 28.4 m |
| SG&A | 33.6 m | 24.3 m | 16.8 m | 21.9 m | 19.3 m | 12.0 m | 11.3 m | 11.6 m |
| Operating income | 31.5 m | -29.1 m | 45.3 m | 75.5 m | 6.8 m | 72.6 m | 79.3 m | 93.1 m |
| Interest expense | 8.9 m | 8.1 m | 8.4 m | 8.4 m | 7.9 m | 9.1 m | 7.2 m | 6.2 m |
| Pre-tax income | 24.0 m | -36.3 m | 37.8 m | 68.0 m | 455.0 k | 65.2 m | 73.7 m | 87.6 m |
| Income tax | 21.7 m | 1.1 m | 14.2 m | 27.9 m | 2.7 m | 24.4 m | 22.4 m | 27.8 m |
| Net income | 2.3 m | -37.4 m | 23.6 m | 40.1 m | -2.3 m | 40.8 m | 51.3 m | 59.8 m |
| Diluted EPS | 0.01 | -0.23 | 0.14 | 0.23 | -0.01 | 0.24 | 0.31 | 0.36 |
| Operating cash flow | 15.2 m | 20.0 m | -15.1 m ≈ | 47.6 m ≈ | 74.6 m | 5.1 m | 58.3 m ≈ | 67.4 m ≈ |
| Capex | 0 | 31.0 k | 2.0 k ≈ | 2.0 k ≈ | -1.0 k | — | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 25 percentile of its own 20-quarter history (min 3.6, median 11.2, max 163.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 346.6 m | 428.4 m | 389.5 m | 413.8 m | 410.6 m | 442.7 m | 351.4 m | 296.2 m |
| Revenue YoY | +16.2% | +23.6% | −9.1% | +6.2% | −0.8% | +7.8% | −20.6% | −15.7% |
| Net income | -282.4 m | 21.5 m | 106.2 m | 528.4 m | 175.1 m | -1.0 bn | 880.0 k | 24.0 m |
| Net income YoY | unavailable | unavailable | +393.7% | +397.7% | −66.9% | −672.5% | unavailable | +2,629.2% |
| Diluted EPS | -1.85 | 0.14 | 0.66 | 3.21 | 0.96 | -6.45 | 0.01 | 0.15 |
| Diluted EPS YoY | unavailable | unavailable | +371.4% | +386.4% | −70.1% | −771.9% | unavailable | +1,400.0% |
| net % | -81.5% | 5.0% | 27.3% | 127.7% | 42.6% | -226.4% | 0.3% | 8.1% |
| Free cash flow | -71.2 m | 3.5 m | 167.0 m | 261.6 m | 273.6 m | 183.2 m | 103.4 m | 127.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 215.5 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- -261.8 m USD
- Total assets
- 396.9 m USD
- Debt / equity
- unavailable
- Current ratio
- 1.13x
- ROE
- unavailable
- ROA
- 6.4%
- FCF margin
- 42.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 389.5 m | 413.8 m | 410.6 m | 442.7 m | 351.4 m | 296.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | 3.1 m | — | — | — | — | — | SEC (XBRL)· 17 Feb 2021verified |
| Gross profit | 386.4 m ≈ | — | — | — | — | — | SEC (XBRL)· 17 Feb 2021derived |
| Research & development | 88.1 m | 70.4 m | 44.3 m | 116.1 m | 111.4 m | 95.1 m | SEC (XBRL)· 26 Feb 2026verified |
| SG&A | 140.0 m | 111.1 m | 116.0 m | 158.3 m | 144.3 m | 82.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | 142.9 m | 232.3 m | 250.3 m | -945.4 m | 93.1 m | 98.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 2.3 m | 1.5 m | 1.4 m | 1.2 m | 1.2 m | 1.1 m | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | 145.2 m ≈ | 233.8 m ≈ | 251.7 m ≈ | -944.2 m ≈ | 94.3 m ≈ | 99.6 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Interest expense | 29.5 m | 31.2 m | 7.6 m | 21.6 m | 33.0 m | 32.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Pre-tax income | 108.9 m | 200.7 m | 252.4 m | -948.1 m | 65.2 m | 70.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | 2.7 m | -327.8 m | 77.4 m | 83.5 m | 64.3 m | 46.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | 106.2 m | 528.4 m | 175.1 m | -1.0 bn | 880.0 k | 24.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | 0.66 | 3.21 | 0.96 | -6.45 | 0.01 | 0.15 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 160.7 m | 164.4 m | 186.3 m | 155.4 m | 160.1 m | 163.0 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 362.6 m | 620.1 m | 656.2 m | 92.2 m | 88.6 m | 215.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Receivables | 122.4 m | 114.0 m | 115.5 m | 129.1 m | 81.9 m | 46.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 495.8 m | 745.2 m | 780.6 m | 233.3 m | 182.4 m | 274.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 8.9 m | 7.6 m | 6.3 m | 5.6 m | 4.5 m | 3.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | — | — | — | 3.7 m | 2.9 m | 2.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 559.2 m | 1.1 bn | 1.1 bn | 471.1 m | 350.9 m | 396.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | 661.0 k | 935.0 k | 483.0 k | 7.8 m | 2.1 m | 2.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | 430.3 m | 454.2 m | 396.3 m | 397.9 m | 199.0 m | — | SEC (XBRL)· 12 May 2025verified |
| Current liabilities | 32.2 m | 161.7 m | 25.5 m | 276.1 m | 38.8 m | 242.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | — | — | — | — | — | 658.7 m | SEC (XBRL)· 06 Aug 2026verified |
| Equity | 62.6 m | 605.9 m | 652.4 m | -346.3 m | -301.3 m | -261.8 m | SEC (XBRL)· 07 May 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 168.8 m | 261.9 m | 273.8 m | 183.4 m | 103.5 m | 127.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 1.8 m | 265.0 k | 136.0 k | 273.0 k | 142.0 k | 34.0 k | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | 167.0 m ≈ | 261.6 m ≈ | 273.6 m ≈ | 183.2 m ≈ | 103.4 m ≈ | 127.0 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -1.8 m | -265.0 k | -136.0 k | -1.0 bn | -142.0 k | -34.0 k | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | 18.5 m | -4.6 m | -237.6 m | 277.2 m | -107.0 m | 216.0 k | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | — | 24.1 m | 126.4 m | — | — | — | SEC (XBRL)· 16 Feb 2023verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 58.3% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 667.2 m USD
Key indicators
Coverage and freshness
Score by group
58% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 13.50 – 38.24 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E13.50 – 38.24 (Mid 25.32)14 companies used · median multiple 28.1x · quartiles 15.0x – 42.5xABBV, ABT, ALNY, BMY, JNJ, LLY, OGN, OMER, PFE, REGN, RPRX, UTHR, VRTX, ZTS
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 58.3% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 37.4% | 93 (vs peers) | 11% |
| FCF conversion · Quality | 137.2% | 100 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | -10.3% | 0 (on a fixed band) | 14% |
| EPS CAGR 3Y · Growth | -46.1% | 0 (on a fixed band) | 14% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 8.3x | 100 (on a fixed band) | 11% |
| Current ratio · Balance sheet | 6.5x | 100 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 4.5x | 100 (vs peers) | 18% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 30.8% | 100 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet100/100 · 2/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality97/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation100/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
IRONWOOD PHARMACEUTICALS INC (IRWD). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 296.2 m USD in 2025; YoY growth -15.7%; net margin 37.4%.
The estimated value range is 13.50–38.24 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 25.32 USD, the price of 4.03 USD leaves a potential of 528.2% (value / price − 1) and a margin of safety of 84.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 37.4%
- FCF conversion: 137.2%
- Interest coverage: 8.3x
- Current ratio: 6.5x
- P/E (TTM): 4.5x
- FCF yield: 30.8%
- The price is below the estimated value range
What contradicts it
- Revenue CAGR 3Y: -10.3%
- EPS CAGR 3Y: -46.1%
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Pharmaceutical Preparations (SIC 2834) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LLYEli Lilly And Company | 1,283.9 bn | 44.3 | 86.1% | 31.9% | +44.7% | +27% / +131% |
| JNJJohnson & Johnson | 655.6 bn | 41.3 | 20.0% | 16.2% | +6.0% | +32% / +76% |
| ONCBeone Medicines Ltd. | 575.0 bn | 640.9 | 18.4% | 13.9% | +40.2% | +14% / +107% |
| ABBVAbbVie Inc. | 509.5 bn | 49.6 | — | 15.7% | +8.6% | +27% / +102% |
| MRKMerck & Co., Inc. | 362.2 bn | 151.2 | 5.1% | 3.6% | +1.3% | +40% / +43% |
| ABTAbbott Laboratories | 196.7 bn | 42.3 | 9.2% | 9.7% | +5.7% | −12% / +9% |
| PFEPfizer Inc | 170.3 bn | 42.6 | 4.4% | 6.3% | −1.6% | +16% / −2% |
| VRTXVertex Pharmaceuticals Inc | 137.5 bn | 34.9 | 20.8% | 30.7% | +8.9% | +25% / +53% |
| BMYBristol-Myers Squibb Company | 129.0 bn | 14.0 | 44.1% | 18.5% | −0.2% | +28% / +28% |
| TEVATeva Pharmaceutical Industries Limited | 48.8 bn | 97.3 | 6.6% | 3.6% | +4.3% | +55% / +325% |
| ZTSZoetis Inc. | 33.4 bn | 13.8 | 57.6% | 26.4% | +2.3% | −36% / −54% |
| ROIVRoivant Sciences Ltd. | 26.5 bn | — | -6.2% | -3,535.0% | −71.6% | +76% / +283% |
| RPRXRoyalty Pharma plc | 26.2 bn | 47.7 | 6.9% | 25.7% | +5.1% | +69% / +150% |
| UTHRUnited Therapeutics Corporation | 24.1 bn | 21.3 | 19.1% | 38.6% | +10.6% | +16% / +136% |
| INSMInsmed Inc | 23.9 bn | — | -72.5% | -39.9% | +66.7% | −48% / +335% |
| VTRSViatris Inc. | 21.7 bn | — | -24.3% | -23.9% | −3.0% | +77% / +107% |
| ALNYAlnylam Pharmaceuticals, Inc. | 21.0 bn | 7.9 | 126.6% | 52.8% | +65.2% | −65% / −7% |
| BBIOBridgeBio Pharma, Inc. | 14.5 bn | — | — | -61.3% | +126.3% | +3% / +159% |
| MDGLMadrigal Pharmaceuticals, Inc. | 9.3 bn | — | -24.8% | -10.9% | +432.1% | −33% / +97% |
| OGNOrganon & Co. | 3.6 bn | 18.0 | 20.3% | 3.5% | −2.9% | +79% / +22% |
| ZLABZai Lab Limited | 2.0 bn | — | -30.0% | -44.9% | +15.3% | +11% / −17% |
| SLSSELLAS Life Sciences Group, Inc. | 1.6 bn | — | -39.6% | — | −100.0% | +386% / +658% |
| OMEROmeros Corp | 1.2 bn | 9.9 | — | — | −34.0% | +76% / +679% |
| IRWDIronwood Pharmaceuticals Inc | 667.2 m | 4.5 | — | 37.4% | −15.7% | +96% / −56% |
| RCKTRocket Pharmaceuticals, Inc. | 267.3 m | — | -4.8% | — | unavailable | −29% / −90% |
1- and 3-year price returns: for IRWD from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 2.16 Total return -46% · Per year -46% | 3.84 Total return -5% · Per year -5% | 5.82 Total return 44% · Per year 44% |
| 3 years | 1.72 Total return -57% · Per year -25% | 3.47 Total return -14% · Per year -5% | 5.82 Total return 44% · Per year 13% |
| 5 years | 1.36 Total return -66% · Per year -19% | 3.13 Total return -22% · Per year -5% | 5.82 Total return 44% · Per year 8% |
- Exit P/E± 0.87
- Net margin± 0.61
- Annual revenue growth± 0.55
- Annual dilution± 0.05
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (05 Nov 2026 · results), 10-Q (05 Nov 2026).
In brief
Ironwood Pharmaceuticals is a biotechnology company developing and commercializing therapies for gastrointestinal and rare diseases, with LINZESS as its main product, sold in the United States together with partner AbbVie. The company reported strong LINZESS sales growth in the second quarter of 2026, and its future depends largely on the confirmatory Phase III study of apraglutide, whose results are awaited, and on U.S. pricing pressures 13.
SWOT
Strengths
- The company has an approved commercial product with recent growth, a partnership model that shares risk, and a leading position in therapies for short bowel syndrome 13.
- Operating cash flow and the repayment of convertible debt show stronger financial discipline than in earlier years 3.
- Expertise in gastroenterology and rare diseases supports new product development, and the leadership team was strengthened in 2026 13.
Weaknesses
- Near-total dependence on LINZESS and the U.S. partner makes revenue vulnerable to price or demand changes 1.
- The company still carries an accumulated deficit and has had net losses in the past, so profitability depends on a single product 12.
- Changes in finance and research leadership point to some organizational instability 3.
Opportunities
- Success of the STARS-2 study could open the market for apraglutide, a treatment for a disease with unmet medical needs 23.
- Expanding LINZESS indications for children and into new international markets could increase collaboration revenue 13.
- Lower debt and higher profitability could provide flexibility for new product or technology acquisitions 3.
Threats
- Price pressure from federal negotiation programs and cost-reduction policies could reduce LINZESS revenue 1.
- The emergence of competing treatments or generics could affect market share after exclusivity rights expire 1.
- Failure or delay of the STARS-2 study could postpone or cancel the apraglutide launch, affecting long-term strategy 12.
Risks
- Dependence on LINZESShigh
Most revenue comes from LINZESS in the U.S., and any change in demand or price could affect the company's results 1.
- Price pressurehigh
Federal price negotiation programs and list price reductions could limit margins and sales revenue 1.
- Apraglutide study riskmedium
The confirmatory STARS-2 study must demonstrate efficacy, and unfavorable results could delay or stop the program 12.
- Leadership changesmedium
The resignation of the finance chief and the replacement of the medical chief could disrupt strategy execution in the short term 3.
- Partner dependencelow
The company relies on partners to commercialize outside the U.S., and changes in agreements, such as in China, could affect royalty revenue 2.
Investment thesis
What would need to be true (bull case)
- Strong LINZESS sales growth in 2026 and the upward revision of financial guidance suggest the main revenue engine may keep its momentum 3.
- If the STARS-2 study confirms the positive Phase III data, apraglutide could become an important new product in a market with unmet needs 23.
- Debt reduction and operating cash generation could give the company flexibility for investments and long-term shareholder returns 3.
What would break the thesis
- Near-total dependence on a single product means that a price or regulatory change could have a major impact on the whole company 1.
- U.S. pricing pressure, including the 2027 Medicare net price, could limit long-term revenue growth 1.
- The apraglutide program requires a confirmatory study, and its failure could eliminate the main hope for long-term growth 12.
What to watch
- Quarterly results for U.S. LINZESS sales and the pace of demand growthQ3 2026
- Recruitment progress in the STARS-2 study and any timeline updates2026
- Pricing developments and implementation of the negotiated Medicare price for LINZESS2027
- Remaining debt reduction and cash level after the 2026 repaymentsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (05 Nov 2026 · results), 10-Q (05 Nov 2026).
The business
Ironwood Pharmaceuticals, Inc. describes itself as a biotechnology company developing and commercializing life-changing therapies for people living with gastrointestinal and rare diseases 1. Its core product is linaclotide, sold as LINZESS in the United States and as CONSTELLA in Canada and certain European countries, and it is the first product approved by the FDA in a new class of GC-C agonists 1. The company was incorporated in Delaware in 1998 as Microbia, Inc. and has used its current name since 2008 1. Total revenues in 2025 were 296.2 million USD, almost all from linaclotide partnerships, with 97.7% of revenue from the U.S. 1.
The strategy has three priorities: maximizing LINZESS, advancing apraglutide, and delivering sustained profits and cash flows 1. Ironwood operates a single reportable segment, human therapeutics 1. Results for the first half of 2026 show revenue growth against the prior year, and the company raised its full-year 2026 guidance 3.
Partnerships are central to the model: AbbVie commercializes linaclotide in the U.S. and all countries except China and Japan, Astellas in Japan, and the China partner changed in May 2026 12. For apraglutide, a long-acting GLP-2 analog for short bowel syndrome, the company acquired VectivBio in 2023 1.
Segments
Apraglutide
Apraglutide targets adult patients with short bowel syndrome with intestinal failure who depend on parenteral support. The Phase III STARS study reported positive results in 2024, but the FDA required a confirmatory study 1. The STARS-2 study was initiated in June 2026 and is actively recruiting, and it is a 24-week trial 2. Research spending on apraglutide was significant in 2025, showing the importance of this program 1.
Market context
The target market includes patients with irritable bowel syndrome with constipation and chronic idiopathic constipation, which are common conditions, as well as patients with short bowel syndrome, a rare disease 12. The source documents estimate that up to 11.5 million U.S. adults may have irritable bowel syndrome with constipation and up to 28.5 million may have chronic idiopathic constipation 1. For short bowel syndrome with intestinal failure, the company cites about 18,000 adult patients in the U.S., Europe and Japan 2.
Pricing and reimbursement are key factors in the U.S. market. The Maximum Fair Price negotiated for LINZESS under the federal program will become the new Medicare net price from January 1, 2027, and the company lowered its list price effective 2026 1. These conditions could materially influence future sales.
Trends
- LINZESS sales growth in 2026tailwind
U.S. LINZESS sales rose 14% in the second quarter of 2026, supported by higher demand and the elimination of certain inflationary rebates 3. If this trend continues, the updated company guidance could be supported.
- U.S. pricing pressureheadwind
Price-setting rules, including the Inflation Reduction Act negotiation program and the list price reduction, could lower revenue per unit and limit reimbursement 1. The effect on future revenue depends on how these rules are implemented.
- Advancing apraglutidemixed
The launch of STARS-2 and patient recruitment open a path toward possible approval, which could add a new revenue source 23. However, results are uncertain and depend on the confirmatory study.
- Debt reduction and profitabilitytailwind
The company repaid its 200 million USD convertible notes from cash on hand and increased operating cash flow, which could strengthen the balance sheet if the trend continues 3.
Competitive position
Ironwood competes in the gastrointestinal treatment category, where LINZESS is the first FDA-approved GC-C agonist, but the sources do not detail direct competitors 1. In short bowel syndrome, competition comes from other GLP-2 analog therapies, and Ironwood argues that apraglutide could become a best-in-class treatment 3.
Competitive risk is heightened because other therapies may be developed for the same indications, which could reduce LINZESS market share, especially after exclusivity periods end 1. The company also notes the risk that other products compete with LINZESS, without naming specific competitors in the sources provided 1.
- AbbVie Inc.ABBV
Commercialization partner for LINZESS in the U.S. and most other countries, which shares U.S. sales profits with Ironwood 13.
- Astellas Pharma Inc.
Partner for linaclotide in Japan, where it sells LINZESS for adults with irritable bowel syndrome or chronic constipation 1.
- Grand Life Sciences (Beijing) Co., Ltd.
New partner for linaclotide in China after the former partner transferred its rights in May 2026 2.
- Asahi Kasei Pharma Corporation
Licensee for apraglutide in Japan, which may commercialize and sublicense the product in the Japanese market 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report05 Nov 2026
- Current report05 Nov 2026Results of operations · Financial statements and exhibits
- Current report16 Oct 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Current report18 Jun 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Current report15 Jun 2026Other events
- Current report (amendment)21 May 2026Departure or appointment of officers
- Current report13 May 2026Departure or appointment of officers
- Quarterly report07 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Ironwood Pharmaceuticals, Inc. · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Ironwood Pharmaceuticals, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Ironwood Pharmaceuticals, Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.