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Mar 31, 2025
Ironwood Pharmaceuticals Q1 2025 Earnings Report
Ironwood Pharmaceuticals reported a decrease in total revenue and net loss for the first quarter of 2025 compared to the same period in the previous year, primarily due to a change in estimate of AbbVie gross-to-net rebate reserves.
Key Takeaways
Ironwood Pharmaceuticals reported a total revenue of $41.1 million and a GAAP net loss of $37.4 million for the first quarter of 2025. The company's LINZESS prescription demand grew by 8% year-over-year, and they raised their adjusted EBITDA guidance for 2025 to greater than $105 million. The decrease in revenue was primarily due to a change in estimate of AbbVie gross-to-net rebate reserves, which is expected to impact quarterly phasing but not full-year results.
Total revenue for Q1 2025 was $41.1 million, a decrease from $74.9 million in Q1 2024.
GAAP net loss for Q1 2025 was $37.4 million, compared to a net loss of $4.2 million in Q1 2024.
Adjusted EBITDA for Q1 2025 was -$4.7 million, down from $21.1 million in Q1 2024.
LINZESS prescription demand grew 8% year-over-year in Q1 2025, reaching 53 million capsules.
Revenue by Segment
Forward Guidance
Ironwood Pharmaceuticals reaffirmed its FY 2025 financial guidance and raised its adjusted EBITDA guidance to greater than $105 million for 2025. The company expects high single-digit prescription demand growth for LINZESS, though this will be partially offset by expected price erosion due to Medicare Part D redesign.
Positive Outlook
- On track to achieve FY 2025 financial guidance.
- Raised adjusted EBITDA guidance to greater than $105 million for 2025.
- LINZESS EUTRx prescription demand growth of 8% year-over-year, in line with full-year expectations.
- Exploring strategic alternatives to maximize stockholder value.
- Apraglutide confirmatory Phase 3 trial plans advancing.
Challenges Ahead
- Expected price erosion for LINZESS due to Medicare Part D redesign.
- Q1 2025 LINZESS U.S. net sales impacted by a change in estimate of AbbVie gross-to-net rebate reserves, though not expected to impact full-year results.
- A confirmatory Phase 3 trial will be needed for apraglutide approval, potentially delaying market entry.
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Avg. Return Before/After Earnings
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