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BOSTON—Thomas A. McCourt, the Chief Executive Officer of Ironwood Pharmaceuticals Inc. (NASDAQ:IRWD), recently sold 139,064 shares of the company’s Class A Common Stock. The transaction comes amid a challenging period for the company, whose stock has declined over 87% in the past year. The shares were sold to cover tax withholding obligations related to the vesting of restricted stock units and performance-based restricted stock units, according to a filing with the Securities and Exchange Commission.
The transaction, which took place on February 10, 2025, resulted in a total sale value of approximately $244,752, with shares sold at a weighted average price of $1.76. The shares were sold in multiple transactions at prices ranging from $1.60 to $1.84, as noted in the filing. The company maintains strong liquidity with a current ratio of 3.62, indicating solid ability to meet short-term obligations.
Following the transaction, McCourt retains ownership of 1,160,634 shares of Ironwood Pharmaceuticals, all held directly. According to InvestingPro analysis, the stock appears slightly undervalued at its current market cap of $314 million, with analysts projecting a return to profitability this year.
In other recent news, Ironwood Pharmaceuticals has undergone significant changes. The company announced a workforce reduction of about 50% to refocus resources and streamline operations, with an emphasis on the development of apraglutide, a treatment for short bowel syndrome. This restructuring is expected to result in charges between $20 million and $25 million, but should yield annual operating expense savings of approximately $55 to $60 million.
Ironwood Pharmaceuticals has also been removed from the S&P SmallCap 600 index due to its current market capitalization. This change may affect investor visibility and could lead to shifts in stock prices.
In response to these developments, JMP Securities lowered its price target for Ironwood Pharmaceuticals from $23 to $14, while maintaining a Market Perform rating. The analyst firm highlighted the potential of apraglutide as a key asset for future value.
Furthermore, Ironwood’s 2025 financial guidance forecasts LINZESS U.S. net sales between $800 and $850 million, with total revenue expected to range from $260 to $290 million. The adjusted EBITDA is projected to be over $85 million. These recent developments underscore Ironwood’s strategic focus on advancing apraglutide and ensuring long-term growth.
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