November 10, 2025 — Ironwood Pharmaceuticals, Inc. (Nasdaq: IRWD), a biotechnology company focused on developing and commercializing therapies for gastrointestinal (GI) and rare diseases, has announced its third quarter 2025 financial results and recent business performance.
Tom McCourt, chief executive officer of Ironwood, stated that LINZESS delivered a strong third-quarter performance, driven by accelerated double-digit prescription demand growth combined with improved net pricing, which prompted the company to raise its full-year 2025 financial guidance. McCourt added that the company expects the strong third-quarter revenue will result in substantial fourth-quarter cash flows, which will strengthen Ironwood’s financial position, enable the company to reduce its debt, and maintain compliance with debt covenants over the coming quarters.
McCourt also noted the FDA approved LINZESS this month for the treatment of IBS-C in patients 7 years of age and older and that the company remains focused on advancing the apraglutide program toward a confirmatory Phase 3 trial, with plans to align on a trial design with the FDA later this year. Pending alignment, Ironwood expects to initiate a Phase 3 confirmatory study in the first half of 2026. In addition, Ironwood continues to review strategic alternatives to maximize shareholder value and looks forward to providing an update on that process.
Key financial highlights from the third quarter of 2025 include:
- Total revenue increased to $122.1 million, compared to $91.6 million in the third quarter of 2024.
- Total costs and expenses decreased to $46.6 million, compared to $66.0 million in the third quarter of 2024.
- GAAP net income increased to $40.1 million, or $0.25 per share basic and $0.23 per share diluted, compared to $3.6 million, or $0.02 per share basic and diluted, in the third quarter of 2024.
- Adjusted EBITDA increased to $81.8 million, compared to $34.5 million in the third quarter of 2024.
Apraglutide, a once-weekly, long-acting synthetic glucagon-like peptide-2 analog, is being advanced for short bowel syndrome (SBS) patients dependent on parenteral support (PS). Ironwood is finalizing a confirmatory Phase 3 trial design for apraglutide in these patients and plans to align with the FDA in the fourth quarter of 2025.
In November, the FDA approved LINZESS for the treatment of irritable bowel syndrome with constipation (IBS-C) in patients aged 7 years and older, establishing it as the first and only prescription drug approved for this condition in patients 7-17 years old.
Total LINZESS prescription demand in the third quarter of 2025 was 60.5 million capsules, a 12% increase compared to the third quarter of 2024, per IQVIA.
LINZESS U.S. net sales, provided by Ironwood’s U.S. partner AbbVie, were $314.9 million in the third quarter of 2025, a 40% increase compared to $225.5 million in the third quarter of 2024. Ironwood and AbbVie share equally in U.S. brand collaboration profits.
Collaboration revenue to Ironwood was $119.6 million in the third quarter of 2025 related to sales of LINZESS in the U.S., a 35% increase compared to $88.9 million in the third quarter of 2024.
Ironwood continues to evaluate strategic alternatives and is engaged in settlement negotiations with Ferring International Center S.A. regarding a complaint filed against its subsidiary, VectivBio AG, establishing an estimated litigation contingency reserve of $7.5 million.
Ironwood is raising its 2025 financial guidance and now expects U.S. LINZESS Net Sales of $860 – $890 million, Total Revenue of $290 – $310 million, and Adjusted EBITDA of >$135 million.
Ironwood ended the third quarter of 2025 with $140.4 million of cash and cash equivalents and generated $47.6 million in cash from operations.
Ironwood presents non-GAAP net income (loss) and non-GAAP net income (loss) per share to exclude amortization of acquired intangible assets, restructuring expenses, and acquisition-related costs, all net of tax effect. Adjusted EBITDA is calculated by subtracting stock-based compensation, restructuring expenses, net interest expense, income taxes, depreciation and amortization, and acquisition-related costs from GAAP net income.
Ironwood Pharmaceuticals (Nasdaq: IRWD) is a biotechnology company developing and commercializing life-changing therapies for people living with gastrointestinal (GI) and rare diseases. LINZESS® (linaclotide) is the U.S. branded prescription market leader for the treatment of irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation (CIC).
Source: Ironwood Pharmaceuticals
