Ironwood Pharmaceuticals (IRWD Quick QuoteIRWD - Free Report) reported adjusted earnings of 14 cents per share for the second quarter of 2025 against the Zacks Consensus Estimate of a loss of 2 cents. The company had reported breakeven earnings in the year-ago quarter.

Total revenues in the second quarter were $85.2 million, which beat the Zacks Consensus Estimate of $62 million. Revenues, however, decreased by around 9.7% year over year.

Shares of Ironwood were up 9.3% on Aug. 7, probably due to better-than-expected second-quarter results.

The stock has plunged 80.1% so far this year against the industry’s rise of 5.6%.

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IRWD's Q2 Earnings in Detail

As reported by its partner AbbVie (ABBV Quick QuoteABBV - Free Report) , Ironwood’s sole marketed product, Linzess (linaclotide), generated net sales of $248 million in the United States, up 17% year over year, owing to prescription demand growth.

Total prescription demand for Linzess increased 10% year over year.

Ironwood and ABBV equally share Linzess’ brand collaboration profits and losses.

Ironwood’s share of net profit from the sales of Linzess in the United States (included in collaborative revenues) totaled $85.7 million, reflecting a decrease of 6% year over year.

Ironwood has agreements with two partners, Astellas Pharma and AstraZeneca (AZN Quick QuoteAZN - Free Report) , related to the development and commercialization of Linzess in Japan and China, respectively.

Astellas and AstraZeneca have exclusive rights to develop and market the drug in their respective territories. Astellas and AZN are liable to pay royalties to Ironwood on net Linzess revenues earned in their regions.

Ironwood's royalties and other revenues were negative $0.5 million in the second quarter. In the year-ago quarter, the company recorded $3 million in royalties and other revenues.

Total cost and expenses (including research and development expenses, selling, general and administrative expenses and restructuring expenses) in the second quarter were $39.9 million, down 42.5% from the year-ago quarter.

Ironwood recorded adjusted EBITDA of $50.1 million in the second quarter, increasing around 37.3% year over year.

As of June 30, 2025, Ironwood had cash and cash equivalents worth $92.9 million compared with $108.5 million as of March 31, 2025.

2025 Guidance of IRWD

Ironwood maintained its guidance for 2025, which it had provided earlier this year.

The company expects total revenues in the range of $260-$290 million for 2025.

U.S. sales of Linzess (to be recorded by AbbVie) are expected to be in the range of $800-$850 million.

The company expects to deliver an adjusted EBITDA of more than $105 million in 2025.

IRWD's Recent Pipeline Updates

Ironwood is developing its next-generation GLP-2 analog, apraglutide, for treating patients with short bowel syndrome (“SBS”) with intestinal failure (“IF”) who are dependent on parenteral support (PS).

In January 2025, the company initiated the rolling new drug application (“NDA”) submission to the FDA for apraglutide for the given indication. The NDA filing was expected to be completed in the third quarter of 2025.

However, following a discussion with the FDA held in April, the company noted that a confirmatory phase III study will be required to seek approval of apraglutide for treating patients with SBS-IF.

Ironwood is now finalizing a confirmatory phase III study design for apraglutide and plans to align with the FDA in the fourth quarter of 2025.

Pending alignment with the FDA, the company expects to initiate a confirmatory phase III study for apraglutide in patients with SBS who are dependent on PS in the first half of 2026.

Ironwood acquired the rights to develop and commercialize apraglutide following the acquisition of VectivBio in June 2023.