Ironwood Pharma (NASDAQ: IRWD) reported Q2 EPS of ($0.25), $0.04 worse than the analyst estimate of ($0.21). Revenue for the quarter came in at $81 million versus the consensus estimate of $82.6 million.

• Second quarter revenue increased 25% year-over-year to $81 million, driven primarily by LINZESS® (linaclotide) U.S. net sales of $192 million and commercial margin of 60%
• Terminating licensing agreement with AstraZeneca for U.S. lesinurad franchise
• Initiated Phase III programs with IW-3718 and linaclotide and advanced four Phase II trials with lead sGC stimulators, praliciguat and olinciguat
• On track to complete separation of Ironwood into two independent, publicly traded companies in first half 2019

“Ironwood’s performance during the second quarter was driven by year-over-year topline growth of approximately 25%, continued strong LINZESS demand, initiation of Phase III programs for IW-3718 and linaclotide, and further enrollment in Phase II trials for praliciguat and olinciguat,” said Peter Hecht, chief executive officer of Ironwood. “In addition, during the second quarter we announced our intent to separate into two independent, publicly traded companies, each with focused missions and opportunities for significant growth. We have made substantial progress and remain on track to complete the separation in the first half of 2019.”

Dr. Hecht continued, “After initiating the lesinurad market tests in early 2018 and assessing the results in July, we have decided to terminate our licensing agreement with AstraZeneca in its entirety. This action is not taken lightly, but it is an important decision that we believe enables us to allocate capital to the highest return opportunities and drive growth. We are working to maintain appropriate availability of lesinurad for patients and physicians during the termination period.”

GUIDANCE:

Ironwood continues to expect in 2018:

• SG&A expenses to be in the range of $230 million to $250 million;
• R&D expenses to be in the range of $160 million to $180 million;
• the combined Ironwood and Allergan total marketing and sales expenses for LINZESS to be in the range of $230 to $260 million; and,
• net interest expense to be less than $40 million.

For earnings history and earnings-related data on Ironwood Pharma (IRWD) click here.