Bullish indicating open at $55-$60, IPO prices at $37
Ironwood Pharmaceuticals , Inc. (NASDAQ:IRWD) stock has tumbled to a 52-week low, touching down at $1.59. This latest price level reflects a stark contrast to the company’s performance over the past year, with Ironwood’s shares experiencing a precipitous drop of -82.93% from the previous year. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 4.66, though revenue has declined by -20.63% over the last twelve months. Investors are closely monitoring the stock as it navigates through this challenging period, marked by significant volatility and a bearish trend that has gripped the pharmaceutical sector. The company, known for its innovative gastrointestinal treatments, is facing a critical juncture as it attempts to stabilize its stock value and reassure its stakeholders. InvestingPro analysis shows the stock is currently in oversold territory, with analyst price targets ranging from $3 to $14, suggesting potential recovery opportunities. Get access to 13 additional ProTips and comprehensive analysis with InvestingPro.
In other recent news, Ironwood Pharmaceuticals reported its fourth-quarter earnings, revealing adjusted earnings per share of $0.02, which fell short of analyst estimates of $0.06. The company’s revenue also missed expectations, coming in at $90.55 million compared to the anticipated $92.5 million. Despite these financial misses, Ironwood shared positive updates regarding its pipeline drug, apraglutide, for short bowel syndrome. The company has begun a rolling New Drug Application submission to the FDA, with plans to complete it by the third quarter of 2025. Additionally, promising data from an open-label extension study indicated that more patients are gradually weaning off parenteral support with apraglutide treatment.
For its existing product, Linzess, Ironwood reported an 11% year-over-year increase in prescription demand for 2024, although U.S. net sales decreased by 15% to $916.3 million compared to the previous year. Looking forward, Ironwood has provided revenue guidance for 2025, projecting between $260 million and $290 million, which aligns closely with analyst expectations of $287.6 million. The company anticipates Linzess U.S. net sales to range from $800 million to $850 million in 2025. Ironwood concluded 2024 with $88.6 million in cash and cash equivalents, generating $103.5 million in cash from operations for the full year.
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