Ironwood’s earnings and revenue miss expectations for third quarter

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Ironwood Pharmaceuticals ($NASDAQ:IRWD) is a pharmaceutical company based in the United States. The company focuses on the development and commercialization of medicines for gastrointestinal disorders. Ironwood’s earnings and revenue for the third quarter fell short of analysts’ expectations. The company attributed the miss to lower-than-expected sales of its flagship product, Linzess. Linzess is a treatment for irritable bowel syndrome and chronic constipation.

Ironwood said that Linzess sales were hurt by competition from other drugs, as well as by lower-than-expected prescription rates. Despite the miss, Ironwood said that it was making progress on its pipeline of new drugs. The company is currently working on treatments for gastroesophageal reflux disease, ulcerative colitis, and Crohn’s disease.

Earnings

It also posted net income of 173.1 million, which was lower than the expectations by 67.2%. This is primarily due to the company’s increased expenses on research and development. Its main product is Linzess, which is approved for the treatment of irritable bowel syndrome with constipation and chronic idiopathic constipation.

Price History

The stock has been under pressure as a result, and on Friday it opened at $11.5 and closed at $11.4, up by 0.1% from prior closing price of 11.4. Despite the miss, some analysts remain bullish on the stock, citing the potential for the company’s flagship product, Linzess, to continue to grow sales.

VI Analysis

Ironwood Pharmaceuticals is a pharmaceutical company with a focus on gastrointestinal disorders and cardiovascular disease. According to VI’s Risk Rating, Ironwood Pharmaceuticals is a high risk investment in terms of financial and business aspects.

VI Peers

Its competitors are Sun Pharma Advanced Research Co Ltd, Strides Pharma Science Ltd, Glenmark Pharmaceuticals Ltd.

– Sun Pharma Advanced Research Co Ltd ($BSE:532872)

Sun Pharma Advanced Research Co Ltd has a market cap of 70.81B as of 2022. The company’s Return on Equity is -429.91%. Sun Pharma Advanced Research Co Ltd is a pharmaceutical company that specializes in the research and development of new drugs and therapies. The company’s products are sold in over 100 countries worldwide.

– Strides Pharma Science Ltd ($BSE:532531)

Strides Pharma Science Ltd is a pharmaceutical company with a market cap of 29.66B as of 2022. The company has a Return on Equity of -10.94%. The company’s main products are generic drugs and active pharmaceutical ingredients. The company operates in over 50 countries and has over 10,000 employees.

– Glenmark Pharmaceuticals Ltd ($BSE:532296)

Glenmark Pharmaceuticals is a pharmaceutical company headquartered in Mumbai, India. The company was founded in 1977 by Gracias Saldanha as a generic drug manufacturer. The company has over 8,000 employees and operates in over 40 countries. The company’s product portfolio includes drugs in the areas of cardiology, dermatology, diabetes, oncology, respiratory, and urology.

Summary

Investors may be interested in Ironwood Pharmaceuticals as a potential investment opportunity. The company focuses on the development and commercialization of medicines for gastrointestinal diseases. Its products include the prescription drugs LINZESS and ZEGERID.

The company reported third quarter results that missed expectations on both the top and bottom line. The stock has been volatile in recent years, but investors may see potential in the company as it looks to grow its product portfolio and expand its commercial reach.