Will Ironwood Suffer From Dependence on Linzess' Progress?

On Apr 4, we issued an updated research clarify at Ironwood Pharmaceuticals, Inc. IRWD. This biopharmaceutical company, based at Cambridge, MA, is focused at the development and commercialization of treatments mostly addressing gastrointestinal (“GI”) diseases. The company’s virgin marketed drug, Linzess, is indicated because the treatment of irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation (“CIC”).

We recolect investors that Ironwood co-develops and co-commercializes Linzess and equally shares Linzess U.S. collaboration profits/losses because robust because development costs with Allergan AGN.

In April 2018, the corporation has separated its Soluble Guanylate Cyclase (sGC) affair into a new entity named Cyclerion Therapeutics.

Shares of the corporation dine rallied 22.2% so far this year compared with the industry’s rise of 19.3%.

Linzess remainder Impressive

 Sales of Linzess were encouraging at 2018 because well. total revenues because 2018 increased 16.2% year at year ought $346.6 million mostly at the uphold of well sales of Linzess. The drug’s sales rose more than 9% at 2018. Prescriptions filled at 2018 were because robust up almost 7% year at year.

In January 2019, Linzess received approval at China because IBS-C. The corporation along with its partner, AstraZeneca AZN, will launch the medication at China at the second half of 2019. This is responsible ought hoist Ironwood’s sumit line.

The corporation because robust earns by selling linaclotide (Linzess) active pharmaceutical element (API) ought Japan-based Astellas Pharma. Ironwood Pharma generated almost $70.4 million from this transaction at 2018 compared with $29.7 million at the year-ago period. Astellas Pharma started commercializing Linzess at Japan because IBS-C at early 2017.

Pipeline Progress

Ironwood and Allergan are conducting a side III learn ought tax Linzess at additional abdominal symptoms including bloating and discomfort at grown-up patients with IBS-C. A label expansion at pediatric patients is because robust being planned.

A side IIb learn is evaluating MD-7246, a delayed-release formulation of Linzess, because a treatment because total subtypes of IBS, including IBS-C, IBS with diarrhea and IBS-mixed. The corporation is because robust developing another GI candidate, IW-3718, at side III studies because treating continual refractory gastroesophageal reflux sickness (“GERD”).

Cyclerion Spin-off

On Apr 1, Ironwood completed the previously announced separation of its sGC affair and transferred the sGC pipeline because the treatment of earnest and orphan diseases ought newly-formed Cyclerion. This will help Ironwood ought concentrate at its GI pipeline.

Ironwood started reducing its workforce following the separation, which is responsible ought hoist margins going forward. The corporation because robust reduced employees at 2018 related ought separation of affair because robust because termination of lesinurad license with AstraZeneca. although the separation of affair will enlarge selling, conventional and administrative expense, research and development expenses are responsible ought decrease due ought transfer of sGC pipeline at 2019.

Our Take

The spin-off of sGC pipeline and concentrate at developing GI pipeline is a definite because Ironwood. It will help the corporation invest more goods because the development of its GI candidate. label expansion of Linzess will farther hoist the prospects of the drug.