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Sep 30, 2022

Ironwood Pharmaceuticals Q3 2022 Earnings Report

Reported strong performance driven by LINZESS, exceeding 1 million total prescriptions in a quarter.

Key Takeaways

Ironwood Pharmaceuticals reported strong Q3 2022 results, with LINZESS exceeding 1 million total prescriptions in a quarter and a 10% year-over-year increase in EUTRx prescription demand. GAAP net income was $50 million, and adjusted EBITDA was $69 million, with $574 million in cash and cash equivalents at the end of the quarter. The company maintains its full-year 2022 financial guidance.

LINZESS EUTRx prescription demand growth increased 10% year-over-year.

LINZESS exceeded 1 million total prescriptions in a quarter.

GAAP net income of $50 million and adjusted EBITDA of $69 million were reported.

Ended Q3 2022 with $574 million in cash and cash equivalents.

Total Revenue
$109M
Previous year: $104M
+4.7%
EPS
$0.28
Previous year: $0.33
-15.2%
Gross Profit
$108M
Previous year: $92.8M
+16.6%
Cash and Equivalents
$574M
Previous year: $574M
+0.0%
Free Cash Flow
$69M
Previous year: $74.9M
-7.9%
Total Assets
$1.04B
Previous year: $1.08B
-3.6%

Ironwood Pharmaceuticals

Ironwood Pharmaceuticals

Forward Guidance

Ironwood Pharmaceuticals maintains its full year 2022 financial guidance.

Positive Outlook

  • U.S. LINZESS net sales growth of low single digits %
  • Total Ironwood revenue of $420 to $430 million
  • Adjusted EBITDA of >$250 million
  • Continued focused investments
  • Commitment to reaching new patients to drive prescription demand growth moving forward

Challenges Ahead

  • Unable to predict with reasonable certainty the non-GAAP adjustments used to calculate adjusted EBITDA.
  • Adjustments are uncertain
  • Depend on various factors
  • Could have a material impact on GAAP net income for the guidance period.
  • May not incur material expenses related to business development activities in 2022.