Pharmaceutical Processing World

  • Home
  • Regulatory
    • Recalls
  • Pharmaceutical Processing
  • Facility
  • Supply Chain
  • Equipment and Materials
  • Contract Manufacturing
  • Advertise
  • SUBSCRIBE

Analyst Downgrades Ironwood Pharma on Expenses

By Pharmaceutical Processing | May 6, 2013

A Cowen & Co. analyst downgraded shares of Ironwood Pharmaceuticals Inc. Monday, citing the company’s growing expenses and disappointing early sales of its bowel drug Linzess.

THE OPINION: Analyst Edward Nash said he doesn’t expect Ironwood to be profitable until 2017 and he doesn’t expect the stock to trade higher for now. Nash lowered his rating on Ironwood shares to “Neutral” from “Outperform.”

Ironwood’s only approved product is Linzess through a partnership with Forest Laboratories Inc. The drug was approved in 2012 as a treatment for irritable bowel syndrome with constipation and for chronic constipation, and it has been on the market since December. Ironwood said first-quarter sales totaled $4.5 million. According to Nash, analysts expected $9.7 million, on average. Despite that, he said the launch of the drug has been “strong.”

However the company said its total spending nearly doubled to $92.1 million as the Linzess launch brought about greater marketing costs. Its sales and administrative costs more than doubled, and costs related to collaborations rose by more than $20 million. Ironwood posted a wider quarterly loss and less revenue than analysts had expected.

Ironwood is running additional studies of Linzess to broaden its marketing approval and is also studying treatments for central nervous system disorders, gastrointestinal illnesses, and allergic conditions.

Ironwood completed a $175 million debt offering in January, and Nash said he thinks the Cambridge, Mass., company will raise more money by the end of the year.

THE STOCK: Shares of Ironwood Pharmaceuticals lost 9 cents to $14.52 in afternoon trading. The stock has lost 18 percent of its value since the company reported its first-quarter results on April 23.

Related Articles Read More >

This is a photo of the Fujifilm Diosynth Biotechnologies plant under construction in Holly Springs, North Carolina.
Fujifilm, Regeneron ink $3B U.S. manufacturing agreement
This is the logo of Johnson & Johnson.
J&J breaks ground on $2B manufacturing facility in North Carolina
sherwin-williams-pharma-facility (1)
Sherwin-Williams expands flooring solutions for pharma facilities
PHARMAP 2025: Pharma leaders converge in Berlin for fifth anniversary summit
“ppw
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest news, technologies, and developments in Pharmaceutical Processing.

DeviceTalks Tuesdays

DeviceTalks Tuesdays

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
Pharmaceutical Processing World
  • Subscribe to our E-Newsletter
  • Contact Us
  • About Us
  • R&D World
  • Drug Delivery Business News
  • Drug Discovery & Development
  • DeviceTalks
  • MassDevice
  • Medical Design & Outsourcing
  • MEDICAL TUBING + EXTRUSION
  • Medical Design Sourcing
  • Medtech100 Index
  • R&D 100 Awards

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search Pharmaceutical Processing World

  • Home
  • Regulatory
    • Recalls
  • Pharmaceutical Processing
  • Facility
  • Supply Chain
  • Equipment and Materials
  • Contract Manufacturing
  • Advertise
  • SUBSCRIBE