IRWD · Ironwood Pharmaceuticals, Inc.

Ironwood Pharmaceuticals delivered exceptional Q1 2026 performance, primarily propelled by LINZESS U.S. net sales surging to $272.5 million, a 97% year-over-year increase from $138.5 million. This growth stemmed from significantly improved net pricing due to elimination of inflationary rebates and favorable gross-to-net adjustments, alongside 5% prescription demand growth to 56.0 million capsules per IQVIA data. Ironwood's equal profit-sharing with AbbVie yielded $104.2 million in collaboration revenue, up 169% year-over-year, boosting total revenue to $106.5 million. Commercial margin expanded to 76% from 52%, driving net collaboration profit to $204.7 million, up 211%. GAAP net income flipped to $40.8 million ($0.24 diluted EPS) from a $37.4 million loss, with adjusted EBITDA at $76.7 million. Costs declined sharply to $33.9 million, reflecting lower R&D ($21.9 million vs. $27.4 million), SG&A ($12.0 million vs. $24.3 million), and restructuring reversal versus $18.6 million expense. CEO Tom McCourt highlighted strong cash flows expected in Q2 to support 2026 convertible notes repayment. The company reaffirmed full-year guidance: LINZESS U.S. net sales $1.125-$1.175 billion on improved pricing and low-single-digit demand growth; total revenue $450-$475 million; adjusted EBITDA >$300 million. Pipeline progress includes FDA priority review for LINZESS in 2-5 year olds (PDUFA May 24) and Q2 site initiations for apraglutide's confirmatory Phase 3 STARS-2 in SBS-IF, underscoring balanced growth and innovation focus.