BOSTON — Ironwood Pharmaceuticals raised its full-year 2026 financial guidance after reporting higher second-quarter revenue and profit, driven by stronger U.S. sales of its gastrointestinal drug LINZESS.
The biotechnology company reported total revenue of $113 million for the quarter, up from $85.2 million a year earlier. Net income rose to $51.3 million, or 31 cents per share, from $23.6 million, or 14 cents per diluted share, in the second quarter of 2025.
Adjusted earnings before interest, taxes, depreciation and amortization increased to $83 million from $50.1 million.
Ironwood raised its 2026 U.S. LINZESS net sales guidance to between $1.15 billion and $1.20 billion, from its previous forecast of $1.125 billion to $1.175 billion.
The company also increased its total revenue forecast to between $460 million and $485 million, compared with its earlier range of $450 million to $475 million. Adjusted EBITDA is now expected to exceed $310 million, up from a previous forecast of more than $300 million.
LINZESS U.S. net sales reached $282.3 million during the quarter, up 14 percent from $248 million a year earlier. Sales totaled $555 million during the first six months of 2026, representing a 44 percent year-over-year increase.
Ironwood said the quarterly sales increase was driven by 4 percent growth in prescription demand and an improved net price. The company shares U.S. profits from LINZESS with AbbVie.
Ironwood recorded $110 million in collaboration revenue related to LINZESS sales, up 28 percent from $85.7 million in the prior-year quarter. The company’s share of net profit from the U.S. collaboration rose 30 percent to $214.6 million.
“Throughout the first half of the year, we have remained laser focused on meaningful execution of our three strategic priorities: maximizing LINZESS, advancing apraglutide, and delivering sustained profits and cash flows,” CEO Tom McCourt said.
In May, the U.S. Food and Drug Administration approved LINZESS for children ages 2 and older with functional constipation. Ironwood said it is the only FDA-approved prescription treatment for pediatric functional constipation.
The company also began recruiting patients for STARS-2, a confirmatory Phase 3 trial evaluating apraglutide in patients with short bowel syndrome with intestinal failure who depend on parenteral support.
The 24-week global study will evaluate changes in weekly parenteral-support volume. Secondary measures include clinical response, the number of days patients require support each week and whether they achieve enteral autonomy.
Apraglutide is a once-weekly, long-acting synthetic GLP-2 analog being developed for rare gastrointestinal diseases.
Ironwood ended the quarter with $79.1 million in cash and cash equivalents, compared with $215.5 million at the end of 2025. The company generated $58.3 million in operating cash flow during the quarter.
Ironwood also repaid $200 million in convertible senior notes at maturity using cash on hand. Its revolving credit facility had an outstanding balance of $385 million at the end of June, with $165 million in remaining borrowing capacity.
Research and development expenses declined to $22.4 million from $23.4 million, while selling, general and administrative expenses fell to $11.3 million from $16.8 million.
The company appointed Ronald Silver as interim chief financial officer in May following the resignation of Gregory Martini. Jeffrey Silber, M.D., joined Ironwood in July as chief medical officer and head of research and drug development.
