On November 9, 2023, Ironwood Pharmaceuticals Inc (IRWD, Financial), a healthcare company focused on gastrointestinal treatments, announced its financial results for the third quarter of 2023. The company reported a robust performance, particularly noting an 8% year-over-year increase in LINZESS® prescription demand and a 7% increase in U.S. net sales of LINZESS®, which amounted to $279 million.
Financial Performance
Ironwood Pharmaceuticals Inc (IRWD, Financial) reported total revenues of $113.7 million for the third quarter of 2023, compared to $108.6 million in the same period last year. Total operating expenses were $73.7 million, up from $40.2 million in Q3 2022. The company's GAAP net income was $13.95 million, a decrease from $50.3 million year-over-year. The GAAP net income attributable to Ironwood Pharmaceuticals Inc (IRWD) per share was $0.10 basic and $0.09 diluted. Adjusted EBITDA for the quarter was $49.1 million, down from $68.8 million in the previous year. Non-GAAP net income was $21.8 million, with a per-share value of $0.14 basic and $0.12 diluted.
Business Highlights
Ironwood's CEO, Tom McCourt, expressed confidence in the company's strategic progress, emphasizing the positive final data from the STARS Nutrition study and the potential of apraglutide as a leading treatment for short bowel syndrome with intestinal failure. The company also anticipates topline data for the Phase II study of CNP-104 in primary biliary cholangitis (PBC) by the third quarter of 2024.
Guidance and Outlook
Ironwood Pharmaceuticals Inc (IRWD, Financial) maintains its Full Year 2023 Guidance, projecting U.S. LINZESS Net Sales Growth of 6% to 8%, total revenue between $435 to $450 million, and an adjusted EBITDA of approximately negative $900 million, which includes a one-time charge of approximately $1.1 billion from the acquisition of VectivBio.
Non-GAAP Financial Measures
The company provided non-GAAP net income and adjusted EBITDA measures to offer greater transparency and comparability of Ironwood's operating performance. These non-GAAP measures exclude the impact of mark-to-market adjustments on derivatives related to Ironwood’s 2022 Convertible Notes, amortization of acquired intangible assets, restructuring expenses, and acquisition-related costs.
Ironwood Pharmaceuticals Inc (IRWD, Financial) remains committed to advancing innovative GI assets and believes that the continued strong performance of LINZESS, along with positive momentum across its pipeline programs, positions the company well for future success.
For more detailed financial information and the reconciliation of GAAP to non-GAAP financial measures, investors and interested parties are encouraged to review the full earnings release and financial tables provided by Ironwood Pharmaceuticals Inc (IRWD, Financial).
Explore the complete 8-K earnings release (here) from Ironwood Pharmaceuticals Inc for further details.
