Ironwood Pharmaceuticals

IRWD

Drug Manufacturers - Specialty & Generic · Healthcare

Price

$4.29

+0.15 (+3.62%)

Market Cap

$706.2M

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Good

Cash Flow

Exceptional

Stability

Mixed

Valuation

Strong

Track this stock — start free trial

Share count rising — dilution

+8.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 164.4M (2021) → 177.8M (2025)

Winston Score History

The full picture

Ironwood Pharmaceuticals is a specialty drug company focused on gastrointestinal (GI) diseases — basically conditions affecting the stomach and intestines. Its main product is linaclotide, sold under the brand name Linzess in the United States, which treats irritable bowel syndrome with constipation and chronic constipation in adults. Linzess is one of the top-prescribed branded GI medications in the US.

Ironwood earns money primarily through its share of net sales from Linzess, which it co-promotes with AbbVie in the US market. The company operates almost entirely in the United States, and its near-100% gross margin reflects that it collects royalty-like revenue rather than manufacturing drugs itself. Its main competitive strength is the established market position of Linzess, but the biggest risk is patent expiration and potential generic competition, which could sharply reduce revenue as the drug loses exclusivity in the coming years.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+32.6% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+106.7% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$95M/ year

↓ Declining (-15% vs prior year)

32.1% of revenue

1.8x the sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

3.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$79M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Ironwood Pharmaceuticals grew revenue 33% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

100.0%

Premium pricing power — 100.0% gross margin

Profit after running costs

Operating Margin

70.2%

Excellent — 70.2% operating margin

Return on the money invested

ROCE

N/A

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales growth

Sales YoY

+26.2%

Fast-growing sales (+26.2% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Profit that turns into cash

Cash Conversion

147%

Turns 147% of profit into real cash

Spare cash per sale

FCF Margin

49.0%

Converts sales into free cash efficiently (49.0%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

What it owes vs what it owns

Debt / Equity

N/A

—

Data not available

Covers its interest

Interest Cover

7.23x

Adequate interest coverage (7.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

Price vs profit

P/E Ratio (TTM)

5.4x

Attractive valuation — P/E 5.4

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

+2.4

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Not applicable for this business.

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial