• Tue. Apr 20th, 2021

Pharma Oracle

Evolving Today for better Tomorrow

Safety in satisfactory the revenue margin: Ironwood Pharmaceuticals, Inc. (NASDAQ: IRWD)

On 17 March 2020, Ironwood Pharmaceuticals, Inc. (NASDAQ: IRWD) spotted trading -31.77% off 52-week high price. On the other end, the stock has been noted 21.62% away from the low price over the last 52-weeks. The stock changed 2.67% to recent value of $9.62. The stock transacted 2307897 shares during most recent day however it has an average volume of 1984.54K shares. The company has 172.32M of outstanding shares and 153.56M shares were floated in the market.

Ironwood Pharmaceuticals, Inc. (IRWD) recently provided an update on its fourth quarter and full year 2019 results and recent business performance.

Fourth Quarter Financial Results

  • Total Revenues. Total revenues in the fourth quarter of 2019 were $126.3M, contrast to $130.7M in the fourth quarter of 2018. Total revenues for the full year 2019 were $428.4M, contrast to $346.7M in the full year 2018.

    – Total revenues in the fourth quarter of 2019 consisted of $101.6M associated with Ironwood’s share of the net profits from the sales of LINZESS in the U.S., $20.6M in sales of linaclotide API, and $4.1M in linaclotide royalties, co-promotion and other revenue. Total revenues in the fourth quarter of 2018 consisted of $81.6M associated with Ironwood’s share of the net profits from the sales of LINZESS in the U.S., $45.9M in sales of linaclotide API, and $3.2M in linaclotide royalties, co-promotion and other revenue.

    – Total revenues for the full year 2019 consisted of $325.5M associated with Ironwood’s share of the net profits for the sales of LINZESS in the U.S., $48.8M in sales of linaclotide API, $42.4M in license and milestone payments, and $11.7M in linaclotide royalties, co-promotion and other revenue. Total revenues for the full year 2018 consisted primarily of $264.2M associated with Ironwood’s share of the net profits from the sales of LINZESS in the U.S., $70.4M in sales of linaclotide API, and $12.0M in linaclotide royalties, co-promotion and other revenue.

  • Operating Expenses. Operating expenses in the fourth quarter of 2019 were $76.7M, contrast to $100.8M in the fourth quarter of 2018. Operating expenses in full year 2019 were $308.2M, contrast to $497.3M in the full year 2018.

    – Operating expenses in the fourth quarter of 2019 consisted of $39.2M in SG&A expenses, $26.5M in R&D expenses, and $11.0M in cost of revenues.

    – Operating expenses for the full year 2019 consisted primarily of $172.5M in SG&A expenses, $115.0M in R&D expenses, $23.8M in cost of revenues, and $3.6M in restructuring expenses partially offset by $3.5M related to the write-down of commercial supply and inventory to net realizable value and (settlement) loss on non-cancellable purchase commitments and a $3.2M gain on lease modification in connection with the separation of Ironwood and Cyclerion Therapeutics, Inc., or Cyclerion, completed on April 1, 2019.

  • Interest Expense. Net interest expense was $6.6M in the fourth quarter of 2019 and $33.7M for the full year 2019, primarily in connection with the convertible senior notes. Interest expense recorded in the fourth quarter of 2019 included $1.8M in cash expense and $5.3M in non-cash expense. Interest expense recorded for the full year 2019 included $17.0M in cash expense and $19.6M in non-cash expense, and included interest amounts associated with the 8.375% Notes due 2026 previousto their redemption in September 2019. See Convertible Debt Offering below.
  • Gain (loss) on Derivatives.Ironwood recorded a gain on derivatives of $4.5M in the fourth quarter of 2019 as a result of the change in fair value of the convertible note hedge and note hedge warrants. For the full year 2019, Ironwood recorded a gain on derivatives of $3.0M.
  • Net Income (Loss).

    – GAAP net income was $47.9M, or $0.31 per share, in the fourth quarter of 2019, contrast to GAAP net loss of $(15.5)M, or $(0.10) per share, in the fourth quarter of 2018. GAAP net income for the full year 2019 was $21.5M, or $0.14 per share, contrast to GAAP net loss of $(282.4)M, or $(1.85) per share, in the full year 2018.

    – Non-GAAP net income was $47.1M, or $0.30 per share, in the fourth quarter of 2019, contrast to non-GAAP net income of $6.6M, or $0.04 per share, in the fourth quarter of 2018. Non-GAAP net income was $85.5M, or $0.55, per share for the full year 2019, contrast to non-GAAP net loss of $(106.0)M, or $(0.69) per share, for the full year 2018.

    – Non-GAAP net income excludes the impact of mark-to-market adjustments on the derivatives related to Ironwood’s 2022 Convertible Notes, the amortization of purchased intangible assets, the fair value re-measurement of contingent consideration related to Ironwood’s terminated U.S. lesinurad license, the impairment of purchased intangible assets in connection with Ironwood’s notice of termination of the lesinurad franchise, restructuring and separation-related expenses, and loss on the extinguishment of debt. These adjustments are reflected in non-GAAP net income (loss) in the fourth quarter of 2019 and 2018 presented in this press release. See Non-GAAP Financial Measures below.

  • Net Income (Loss) from Continuing Operations. The separation of Ironwood and Cyclerion was completed on April 1, 2019. Starting in the second quarter of 2019, Ironwood recast historical Cyclerion-related operations as discontinued operations.

    – GAAP net income from continuing operations in the fourth quarter of 2019 was $47.9M, contrast to GAAP net income from continuing operations of $8.4M in the fourth quarter of 2018. GAAP net income from continuing operations was $58.9M for the full year 2019, contrast to GAAP net loss from continuing operations of $194.1 for the full year 2018.

    – Ironwood did not incur any Cyclerion-related operations during the fourth quarter of 2019. Ironwood recorded $37.4M in GAAP net loss from discontinued operations for the full year 2019.

  • Adjusted EBITDA from Continuing Operations. Adjusted EBITDA from continuing operations was $54.5M in the fourth quarter of 2019 and $147.8M for the full year 2019.

Its earnings per share (EPS) expected to touch remained 129.70% for this year. IRWD has a gross margin of 94.40% and an operating margin of 20.80% while its profit margin remained 5.00% for the last 12 months. According to the most recent quarter its current ratio was 7.5 that represents company’s ability to meet its current financial obligations. The price moved ahead of -16.18% from the mean of 20 days, -20.93% from mean of 50 days SMA and performed -11.71% from mean of 200 days price. Company’s performance for the week was -15.98%, -20.23% for month and YTD performance remained -27.72%.

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