Ironwood Pharmaceuticals Reports Second Quarter 2024 Earnings
Ironwood Pharmaceuticals, Inc. (IRWD) reported break-even earnings for the second quarter of 2024, missing the Zacks Consensus Estimate of 17 cents per share. This compares to adjusted earnings of 31 cents per share in the year-ago quarter.
Total revenues for the quarter were $94.4 million, also falling short of the Zacks Consensus Estimate of $104 million. This represents a year-over-year decrease of almost 12.1%, primarily driven by a decline in collaborative arrangements revenue related to Linzess (linaclotide), the company's sole marketed drug.
Linzess Sales Decline, Impacting Revenue
As reported by partner AbbVie Inc. (ABBV), Linzess generated net sales of $211.2 million in the United States during the quarter, a 22% decrease year-over-year due to continued pricing pressure. However, total prescriptions for Linzess increased by 11% year-over-year.
Ironwood's share of net profit from Linzess sales in the United States, included in collaborative revenues, totaled $91.4 million, representing a year-over-year decline of almost 12.8%. This was further impacted by a $30 million gross-to-net change in estimate recorded in the first quarter of 2024.
Lowered Revenue Guidance for 2024
Due to the continued pricing pressure on Linzess and higher-than-expected Medicaid utilization trends, Ironwood has lowered its revenue guidance for 2024. The company now expects total revenues in the range of $350 million-$375 million, compared to the earlier projection of $405-$425 million. U.S. sales of Linzess are now expected to be between $900-$950 million, revised from the previous expectation of a mid-single digit decline.
Pipeline Progress and Future Outlook
Despite the challenges with Linzess, Ironwood continues to advance its pipeline. The company is evaluating the safety and efficacy of apraglutide, a once-weekly subcutaneous injection, in a pivotal phase III study for reducing parenteral support dependency in adult patients with short bowel syndrome with intestinal failure (SBS-IF). Ironwood plans to file a new drug application for apraglutide with the FDA in the first quarter of 2025.
IW-3300 for visceral pain conditions and CNP-104 for primary biliary cholangitis (PBC), in collaboration with COUR Pharmaceuticals. Top-line data from the PBC study is expected later in the third quarter of 2024.
While Ironwood faces challenges with its current主力产品, the company's pipeline holds promise for future growth. The progress of apraglutide and other pipeline candidates will be crucial for Ironwood's long-term success.