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Mar 31
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.
Ironwood Pharmaceuticals
Ironwood Pharmaceuticals
Ironwood Pharmaceuticals Revenue by Segment
Revenue by Segment
LINZESS Collaboration Revenue
CapyFin.comRoyalties and Other Revenue
CapyFin.com 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.
- Uncertainty regarding the impact of non-GAAP adjustments on GAAP net income for guidance period.
- Potential for material expenses related to business development activities in 2025, though not currently assumed in guidance.