Ironwood Pharma posts 3Q profit on drug approval
CAMBRIDGE, Mass. (AP) — Ironwood Pharmaceuticals Inc. said Tuesday it turned a profit in the third quarter after the Food and Drug Administration approved its irritable bowel syndrome treatment Linzess.
The FDA approved Linzess at the end of August, triggering an $85 million payment to Ironwood from its partner Forest Laboratories Inc. The companies expect Linzess to reach the market in December. Linzess is a capsule that is intended to treat irritable bowel syndrome with constipation and for chronic constipation. It is intended for adult patients who have not been helped by other treatments.
In the third quarter Ironwood reported net income of $47.6 million, or 42 cents per share. A year ago it took a loss of $20.6 million, or 21 cents per share. Revenue jumped to $96.4 million from $12.2 million on the payment from Forest.
Analysts expected Ironwood to post income of 18 cents per share and $76.7 million in revenue, according to FactSet.
On Tuesday Forest cut its fiscal 2012 sales estimate for Linzess to $25 million from $60 million, citing delays in the FDA approval of the drug.
Shares of Ironwood lost 23 cents to $12.96 in midday trading.