IRWD - Earnings call transcript Q2 2019 | Ironwood Pharmaceuticals, Inc.

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Operator

Good afternoon. My name is David, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ironwood Pharmaceuticals Second Quarter 2019 Investor Update Conference Call. [Operator Instructions]

Meredith Kaya you may begin your conference.

Meredith Kaya

for for thanks XXXX Second and Update. Investor afternoon, joining our us Quarter Good

crossed this the be release press Our wire our www.ironwoodpharma.com. found afternoon website, on can and

involve include Today's accompanying differ materially. cause forward-looking risks to and statements. actual call results uncertainties slides Such and may that statements

ended A these quarterly for heading the Risk risk in our statements XX, factors the XX-Q available on March under discussion Safe well Harbor in quarter SEC as on and of report the Form current filings. Statement and our is slide XXXX, as Factors future

date All obligation forward-looking or superior statements not of Also measures, speak this measures. such only GAAP update to be and as included no and of a undertake should substitute non-GAAP to financial the which a we for statements. are presentation, to considered supplement

To most refer the at measures of our the of comparable release the directly to GAAP end table these extent for reconciliations please press the to applicable, measures.

Mark with will Mike close our also our Mallon results during will McCourt, second Tom During discuss portion available this and the Q&A pipeline and of commercial will the quarter will be of today's an the by quarter, Consylman begin Shetzline call, financial Gina second call. progress, overview highlighting

slides webcast. We'll available via be referring to the

go For our please of the those you section dialing to of webcast Events the in, website slides. to access

over call Mark. turn to that, the will With I

Mark Mallon

afternoon, and us everyone, thanks Good Meredith. joining Thanks, for today.

exciting of chapter beginning second Ironwood. an new quarter the marked The for

commercialize patients that with living As we our develop a make GI began executing for difference to medicines vision diseases. and

growth, near profits. begin launched of term Cyclerion GI pipeline deliver new three and with X, advance completion April late-stage of we separation the the our Following priorities; accelerate LINZESS to Ironwood on

to to growth strong near-term priorities. opportunities believe we off start growth of demand quarter potential another that going continue achieving are these We have with of double-digit driving prescription forward. a each to showed the LINZESS in

in respectively trials X EBITDA into XXXX positive clinical Phase GAAP net income first the generated quarter, XXXX and and progress quarter X and our assets and continuing importantly further second pipeline adjusted operations Phase we Our from post-separation.

of resulting on the each bit year-over-year LINZESS touch grew net team demand sales a XX% a $XXX quarter then prescription second will million. more turn I over in briefly detail. these to to of it provide and

growth impressive ongoing This data branded market reported positive Allergan by line recently category. was in We prescription fueled from abdominal this Xb our our also leadership study Phase with top symptoms and and better provide. IBS-C associated will between adult symptoms linaclotide patients. to enable the physicians multiple data with help the in IBS-C these We relief communication symptom LINZESS patients about believe can and

advanced mid We quarter. to driving opportunity bile both to also treat stage and the by sequester retentive utilizing in late and the second gastric disease. I'm reflux of XXXX formulation, symptoms providing in both by the is the trials amount further of impressed XXXX by bile an respectively stomach products. during exacerbated innovative designed innovation XXXX these and an

with abdominal adults explored certain by and it’s innovative initially relief more patients associated from abdominal linaclotide formulation delayed with designed suffering to And GI pain significant being XXXX provide to through IBS-D. delivered in pain is release diseases is

strategy importantly, we and which benefit believe quarter, reflects report are the in allocation. that our second of Lastly we delivered pleased profitability we focus the and to priorities capital

all our best before, on exploring maximum ways potential said options. to the identifying to are are shareholders and focused we I've As deliver we value

and to advancing find over this importantly of the profits new far, includes we've opportunities continuing time. all have very as made accelerate do. to proud staying doing goal but lot progress as of focused on we quickly of growth, our while LINZESS to more advancing our I'm a pipeline This thus possible delivering

Gina? strong our call will I the the over financial to Gina detail that, to results With quarter. turn for

Gina Consylman

next the our spend financial will results. few I Mark. minutes highlighting Thanks

Specifically, I to XXXX financials this guidance. quarter from our full-year post separation transition financial on touch our will profitability and our Cyclerion,

release for information. to financial our Please the refer detailed press

First recorded separation beginning to expenses for quarter detailed Cyclerion in second and separation. the have historical the release, and operations one-time related certain expenses as related discontinued press as periods in we the prior we

discontinued Note that such Ironwood that the employees discontinued any are one-time corporate they was as on to G&A the cost any operations are exclude separation of of not did separation related to overhead quarter recast allocation not infrastructure XXXX attributable as the expenses X. Cyclerion, costs completed in we April to related and went who operations our second expenses Cyclerion to employee directly as

million we million. recorded financial sales our net LINZESS of commercial of in of net partner $XXX LINZESS sales were $XXX quarter, Astellas. and collaboration by revenue Turning our the in ironwood of our primarily a API with margin $XX revenue results, driven second million to total resulting XX% profits share of to

growth was demand quarter. partially offset price prescription LINZESS net during by lower the

in recall growth Allergan that frequently estimates As up actual now a made. looking numbers, at LINZESS quarter with truing is the reminder it payments more when second

The price second this in was Allergan’s to quarter. due true-up quarter, lower net the partially

price in percent to the for full range we mid-to-high price expect year XXXX. the to fluctuate, net we single-digit expect continue net total While to decrease

the $XX down Linaclotide API to the anticipate be in compared XXXX. were to recorded in fluctuate we sale million quarter. million to $XX XXXX year, flat to second sales but API we are the expected API sales in throughout to continue

expect in ahead, LINZESS to us in build-up has Looking from significant revenue of it's levels we to purchasing future Japan. be been Astellas particularly years, launch in API Astellas from lower because much

XXXX. down are We providing to time guidance but significantly any at this after not formal come revenues expect

for $XX in goods to $X.X expenses, operating is which sold, in in were million expenses, in million of $XX million the directly Total consisting million R&D $XX API of related SG&A the restructuring $XX and costs expenses. of purchase expenses quarter million

lease on the Ironwood Also Cyclerion, $X modification gain separation a executed amendment the second upon of with million in the connection recorded lease from during quarter.

quarter net recorded record or million more proud share $X.XX profitability of we are in GAAP quarter $XX in share. net during To our than million, Mark quarter put $XX the difference. very the loss income earlier a $XX into to call, per million on the first GAAP and post-separation. context, As highlighted year-over-year million was $X.XX second non-GAAP of net was we XXXX, or per this second income $XX

XXXX, GAAP second Additionally, of from net EBITDA quarter we continuing income from $XX million in adjusted recorded $XX in the operations and continuing of operations. million

operations than to year the million including We hit track are XXXX. for from $XX full on expected guidance, of announced adjusted XXXX previously all our in continuing EBITDA greater

generate an Beginning Ironwood. is milestone for to profits important

of the cash Ironwood a profitable to the elements for become is our separation recent One growth ability company. most important of generating

maintain to business. continuing grow flow cash are steps profits, and our positive streamline generate and to We take

For in from build collaborative example, to will this expect current space and this to culture. Downtown we fourth do Not Kendall innovative all fit Boston, relocate be believe be provide employee completed an our will these We new and decision base. our year. are our we for only of headquarters quarter to the recent new our believe better which inspiring help an headquarters employees our work environment that to sized Square

We five cash over to savings also payments result more following years. in $XX than million of expect the our landlord in it to

restructuring to strengthen of the our balance also as intend ways sheet to We potential debt. some explore of our such

the over who some will highlight and With to that, will the call of turn Tom, commercial updates. clinical key I development

Tom McCourt

growth total quarter another quarter demand XX% prescription year. an all-time headlined impressive new-to-brand the second in second period volume, up the Thanks with Gina. strong year-over-year. growth Beginning in to saw last of This up XX% by was high LINZESS, compared with

last MiraLAX in by late continue the We year. of withdrawal demand to prescription generic-prescription see good aided growth

of a their As different constipation now options result, are patients patients. IBS-C for adult and chronic physicians are and LINZESS seeking more prescription choosing

Additionally, the campaign by large since demonstrate original broad Yes are LINZESS be campaign. physician impressive we with high launch commercial including launched of campaign supported refresh, is symptomatic profile, this to spring, and treatment. LINZESS population continues who dissatisfied patients clinical our and proving most strong patient payer our highly a growth key the DTC of successful a current access fundamentals today which satisfaction, to and

access access have to enabled rates at payer to LINZESS since the in demand us our our briefly, grow for and every on always been Touching investments strategy core launch. payer year has double-digit

payer to with working we We beyond access reduce erosion price expect in are XXXX. continue the partner to closely to invest options in to our explore future and

milestone positive Phase our LINZESS. data was quarter important on Xb last Another

constipation Allergan, dose of and microgram which the that positive report patients these adult using improved the disease. to trial LINZESS often IBS-C bloating excited these were line and We symptoms top IBS-C catchall for abdominal encompass problematic of XXX trial, demonstrating data bloating, believe patients. most abdominal symptoms discomfort, report symptoms describe results this patients discomfort as overall from in of symptoms We as often because and their pain a of are pain, these important that

and effective incomplete it will play Ironwood were sharing of new of the treatment. the patients within to specialists symptoms believe in and lead and line data, and are on these with four And physicians We conversations it and weeks and top these patients data trial that communication educating IBS-C. between can patients by the LINZESS results sales of in IBS-C from of the are All physicians can of the now that more a treating resulting suffering trained data, role LINZESS this further about differentiates multiple reporting physicians. patients Allergan physicians and under between enable on

update related pipeline, to the rest to Lastly, LINZESS a IP. before turning GI of quick the

with trial and Sandoz June As originally many XX know, of ANDA to was on Teva year. begin the you scheduled last

a for one trial expected expert pending because testify approval. for of ANDA being trial Sandoz, court's XXXX witnesses available X, Teva the serious on the in the lawsuit of January and due However, postponed issue. is begin health The to now was longer to the to person no

As a of [ph] in to-date. settled in settlements extensive the IP of defend partner we our We and U.S. vigorously be linaclotide marketed this three patent beginning the are portfolio These in allow the of confident you continue strength version ANDA XXXX. have filers with for generic and franchise. to LINZESS to and our our know,

the Turning to now pipeline.

efforts clinical IBS-C. pace potential by treatment of of persistent treatments And impact of GI on of the focus XXXX the having the in the increased interest trial XXXX Xb of an for the for Our related the enrollment is for the new and evidenced GERD. our need to pain development immediate and Phase

underscoring medical match is who data need data Phase reach second enrolling in critical for expect relief three expect study or half next expected well with unmet The across placebo. in recently milestones continue Starting our randomized to we and high to XXXX. pain trial IBS-C XXXX, effective XXX so XXXX. initiated is Xb will doses enroll of XXXX far two patients year be and for the We to the both

acid our persistent the XXXX, gastro-retentive for sequestrant bile On GERD. of of treatment potential

X Phase to data and two also XXXX safety program second the of two of trials enroll in evaluating continues X the we are and the year. efficacy heartburn. trials Phase next regurgitation symptoms, on most expect Our and these of of half The bothersome

has high patients that physicians excitement can potential persistent past persistent the Week over bring been months we XXXX at meeting, recognizing to the benefit of GERD recent XXXX There visibility the a around several with Digestive and including Disease the believe lot GERD. increasingly with

GI of high unmet a to with care our millions opportunity living summary, significant disorders highly represent bothersome medical patients need. advance pipeline areas In of GI candidates for in

turn I'll we to the for before some over that, line closing for call the Q&A. open With Mark comments back

Mark Mallon

to business, Thanks said, point becoming And vision bringing to a ever history. focused turning in committed Tom. medicines company's an leading GI are I we at our exciting the more new of is as need. on And deliver than patients Ironwood in

continue The significant our our strong are We to progression strategy our look executing LINZESS believe in demonstrated progress you. second with forward we performance, sharing well Ironwood our and step a has to of by executing was continued and new transition a to profitability. pipeline as continued on positioned quarter first

to begin turn With Q&A. that, call I'll operator the the over to

Operator

with Line Lebowitz Certainly. question Stanley. Morgan from [Operator Your the Instructions] first comes of David

open. line Your is

David Lebowitz

Thank my much question. taking for you very

gets Given it gets you prescription How and standard MiraLAX the of I guess, do ultimately that contributed worked withdrawal it more, demand? to might I long to down bolus prescriptions. guess, take think is this, until

Mark Mallon

to Tom take question, Thanks on. going David. for that I'm ask your to

Tom McCourt

been David. interesting. Thanks, has This

what the rapid volume the of And out the it but seeing market our striking is of we're the just majority we're we've eroded now where So is this MiraLAX treatment. thing in most of seen an generic-prescription as growth. fastest, seeing option is areas elimination the for

change lack I the don't these the This is overall are of eliminating market this a grab. So significant and patients for prescription a that availability think option. where you're up disruption the just is in dynamic

we're what where in And markets rapid is seeing more we've seeing erosion, those seen greater we're growth.

primary objective time. the of been this point, obviously these and period certainly to extended seen of market. for demand is an we've conversion And So sustained our at OTC drive

David Lebowitz

the price Could of mid us and talked it the with Allergan, guess, upper Thank the, you forward? you a the through you works I about true-ups going process, frequency was guess, the on believe run single-digit, to for I true-up And that. I just mechanics how impact.

Mark Mallon

to ask to Thanks. going David. I'm Gina take that,

Gina Consylman

Sure. Thank David. you, Sure.

did during erosion single-digit note which also guidance for that we the we high price So slightly current erosion full continue to our year, mid to XXXX. but the the for price quarter, had more reiterate is

back recall, you XXXX a to at As brand related in had for that several sizable true-up we reconciliation pretty late time. years

able to the with time frequent work We at are also true-ups. for willing Allergan – we’re more

known on their good that's regular for in to is again and actually Allergan the that, has started – that compared been news looking QX. the a QX to brand true-up year. we already small true-ups estimates saw and committed payments in basis And XXXX, they're everything and the their in at recorded

David Lebowitz

taking for my Thanks questions.

Mark Mallon

I the from next David. can move the person Boris to queue, we And on guess Thanks Cowen. in

Operator

question next Cowen. with comes the of Boris from Your line Peaker

Your line is open.

Boris Peaker

Great.

So a questions. couple of

So competitive maybe on from landscape, are competition at seeing Bausch’s all any you TRULANCE? the

Mark Mallon

well? Tom, take that don't Okay. why you as

Tom McCourt

much not of thus We're really Boris. far. seeing difference Thanks a

our because not besides broader largely much move, and think of these entrance strong market possible. market As just of Zelnorm. LINZESS. on we there's prucalopride, which of OTC need obviously But as undifferentiated largely there's very TRULANCE, the And I in focus a is capturing position much the stay to many continue are you of as made mean, lot much movement. brands. I patients know, as awareness even a really and the the growing new it's a And hasn't addition really Motegrity, as to – well the

puts it Patients pull payer advantage. ability And requesting business, frequently. a huge our us through coverage by the and at are name to of more course, the

to competitors, look market the and a and we I the leader. current as So think, behave need on for basics at continue continue stay us, to emerging we to as

Boris Peaker

that just And my question yes, is obviously, the I leave decade now. you on generic in from I'm second And understand, curious what entrance I'll allow lawsuits? possible settlements it just these are three Great. outcomes ANDA the lawsuits. about a from have there.

Mark Mallon

you as of know, comment don't litigation. We on don't – we sort ongoing

the successful continue to our as Tom think think confident IP. cases, or we conclusions highlighted, three we in we previous as I that I negotiation remain and as we IPs our We forward. will with – go defend

say anything the really about can't I So case.

Boris Peaker

you great. taking questions. Okay, Thank my for

Mark Mallon

Thanks.

Operator

Your Eric line next question comes from the of Joseph with JPMorgan.

Your line is open.

Eric Joseph

the taking for Thanks guys. questions. Hey,

of been that any Thanks as a later whether just to would I'm the know get the question. And there kind to label there And the the taking what abdominal docs forward Allergan from of relationship collaboration whether these curious occur? First, some thoughts initial ultimately Xb fundamental the going any just data sort feedback consequence for anticipate communicated I'm claims reflects we are data, restructuring has of contingencies whether to how results? the like the agreement are of being and symptoms that with acquisition? any curious proposed that on secondly, to update Phase your on changes are of LINZESS should prevent

Mark Mallon

I think question about – change to Tom first initial the the that. with label had abdominal So with or think – take Mike, your And does up finish a AbbVie data. And take if you deal. I'll ask feedback could submission or question change, maybe question to I'll Allergan then you regarding and symptom how that going agreement the plan I on not

Tom McCourt

and yes, more of symptoms label. research symptom, identifiable symptoms majority the with specifically or – you than prescribe their as patient we of studies, symptoms, will raise these the Because we relief and on number broader their self-identify even we pain those drive to more But activate are to overall abdominal patients as And initial LINZESS. since recall, hand the patients ability the I own so ability actually far to willingness So relief to symptom of working identifiable patients. LINZESS is. the to physicians is in abdominal got to getting over is this market we been really patients something, set request as our believe saw those to think have what really that bigger and a a

with brand, the new something the very promotion, mentioned, the with very, clinicians. It's differentiates brand trained is educating sales as have field of plan the we a strengthens have the the far we from in sales on – forward overall force As just further it and they to community. I par are but – out and gives getting we're and regard it medical something exciting as force, been feedback only weeks, it the the couple positive

with would taking this year year, self-identifying forward impact it and consumer updated a consumer for encompass – to do that believe as plans the is have And and these the with we that action. significant sNDA, turn plan as Our last far campaign launch it'll our patients later disease over the later Mike. I'll symptoms to a on

Mike Shetzline

Okay, thanks Tom.

from design recall, the with was with primary actually may the on the intent the the done was Xb endpoint Phase multicomponent collaboration you claims. to those And in design. promote deliverable As study that having key FDA the of the ability

So as and support does clinically Phase the Xb significance the we data collaborators, and the data, we're well our – working sNDA are with submission statistical meaningfulness that in we phase strong currently out as of plans that believe that for Allergan.

Mark Mallon

the closed. in if partnership with the future agreement is with that our And potentially with and Mike. AbbVie, regarding Allergan Thanks transaction

and together been launching our symptom wanted continues the people agreement focused they've data. fully place and in a in a in period. of driving so sure bit and is of of Allergan the they're both it does teams and partner team that So the in on to And not focused is. case say to itself LINZESS this change the claim before great during have first, be quite we're I making The of a this change experience holder, agreement got through abdominal as

is amount a the forward, the brand and will way There partner working been support of provide provisions with basically, of continue like behind to correct likely able and it's positive not the agreement But partnership. AbbVie the commercial the and effort hopefully scenario. very going very was not a company if that's

Eric Joseph

taking for thanks Great, the question.

Operator

next Your Koffler comes Irina with from the of question line Mizuho.

open. is line Your

Irina Koffler

comments my to questions. your taking thank Why maybe by the that on eventually API fact for help us expect they Hi, significantly decline. they just decline? wouldn't rebound material significantly sells sales And the the Can stocked? you them you through company revisit you you and as mean the understand what that

Mark Mallon

question, I'll of make thanks your couple let add comments then Irina. of couple I'll So comments. for a Gina a and

Gina Consylman

Well, you, Thank quite in we firstly, out are Irina. by encouraged launch Japan. point want Sure. to I the just

Especially Astellas of prescribing has of stated the LINZESS second the since recently that the of number been was launch has steadily. the chronic constipation physicians their increasing indication, launch. which prescriptions

said, with of level. out more in that tighter inventory and can bit Now familiar that launch their become they typical launch longer with anticipation But inventory it in that or manage their build a many they once then as was launch. a companies to history they

$XX or be sales to that to will that So And the flat to level. as in Japan are to sales to in still considering the a just we down million recorded compared the or expecting API expect result, beginning XXXX. in in the to XXXX we inventory significantly compared we API reiterate, reduced be XXXX do Astellas XXXX,

Irina Koffler

Sorry, go ahead.

Gina Consylman

in the we for we given give significant we typically would is a are in know, our we usually indication in year, heads-up But quantified now, as year-end you earlier. where held that Yes, February. of the investor preliminary which right guidance thought now, calendar Irina. We typically haven't it, update, bit reduction give the our the

Irina Koffler

Okay. any just have one in And follow-up. then LINZESS there Was stocking I quarter? the

Gina Consylman

minimal. It's so very year-over-year. worth mentioning it was wasn't It minimal,

Irina Koffler

Okay, great. Thank you.

Mark Mallon

If additional I could point. just add

going second possible and and been to working behind forward. of use drive momentum, we'll working up course, purchased as of the brand the indication to API with addition the as continue to that So much the that's for particularly sales the with them Astellas

is they've the we've good that got – been leaves launch. it's reality provide that us So made the guidance. a this they But purchases been to the inventories

we and keep we'll more So posted. will as – you information, we get

Operator

of comes question with H.C. line from Your the Ram Selvaraju next Wainwright.

Your is line open.

Ram Selvaraju

taking very Thanks questions. for much my

comment been in the you've that on I wondering, if if price all, could the Firstly, expect was when future? that seeing stabilize, net foreseeable to trends at you and you

Mark Mallon

question, Gina take your for ask to Ram. I’m to Thanks that. going

Gina Consylman

a to over Sure. high Thanks few for that really guided And as reminder, in we've amount a due a to the of this mix competition different where of have of some higher single-digit combination impacts and calls, erosion consolidation industry a price to we just to the a have coverage patients of gap really of change lower net the erosion in years, price to had past Well, mid that the question. couple continued prior the guided XXXX. we things, addition including mix commercial price. of in to year our see

have we really we those felt and that on in that erosion optimistic XXXX net price the storm are were we beyond. like able impact to reduce And and for be XXXX, perfect will a that

we guidance Now uncertainty provide having overall providing for year. XXXX we in the said and are in and just later formal the typically, market beyond, our guidance the not that,

that was than that has related related QX it been was I lower So just with some to note true-ups really and the a brand. bit little prior did to that, only quarters in

Mark Mallon

add? Tom, want you to

Tom McCourt

Yes.

a establish one contracts the for broad fueled the formulary. the I the lot premium reimbursement payer to either thing early position job keep a initial in that one two. exclusive think access growth other on And the were to arrangements, obviously, you're or us and mind for was that one number of of one of paying and brand is of really

to plan in revisiting in plan. market, do where a market we dominant need those by be the point we'll to leadership place have exclusivity contracts a really and of this strong such we time, At position that maintain see levels

ease on contracting, think on will In some pressure both discounts burden some pilots the and addition, the in initiated of of which price. value the we based we've

here, can position I in have momentum a levers number we're based current forward, really, the on think, So, moving of we our and pull we the marketplace.

Ram Selvaraju

respect That's you. and juncture also very you full helpful. MD-XXXX to when enrollment? currently comment on you stands where Thank can this the Okay. and to reach expect trial clinical enrollment with at IBS-D, And

Mark Mallon

Yes. that? Mike, why didn't you take

Mike Shetzline

sure. Yes,

study patients. being design pain. an in of think And as abdominal highlight clinical IBS-D a relief really And we get from developed the as that effect a on what is is patients a XXXX XXXX well with where study distinct benefit that's real pain they will to effect. So from patients the of get the experience with LINZESS, secretory

really formulation study novel the broad this spectrum patients. pain us of to So opportunity gives in a GI

trial actually enrolling is fairly well. it's The enrolling, currently

half earlier are trial believe in data second and do that. still this to committed we doing of but the can can we guiding to We we're XXXX everything to in actually bring we

Ram Selvaraju

infrastructure that Okay. on is to AstraZeneca commercialization sales color commercialized slated like any to and with that China, might is right effort And then the likely support respect what that the territory? in to now product to in you be have it as undertaken use do when

Mark Mallon

So, China. I'll that question take on

it's very successful. on the voice a team, don't for specifics resources, we're think that we confident they of will currently promoting sales has products, actively So brand sales of the those behind share be allocate we'll the how and speak, representatives, that, effort GI I AstraZeneca as of make and sure enough hundreds large to GI very but, comment

the the on One AstraZeneca they is does well very getting first thing reimbursement. focus that that

we we to the in the go We're national their the of timing because provinces can XXXX the process missed then reimbursement, of a product approval, reimbursement we, of list. the each that, XXXX. through reimbursement into getting And you add hopeful So, get of cycle. that

those we do what typically you force as the scale on, provinces as effort. come sales up those, And then is

the time great the a growth right the like on of that such One using the a resources things partner footprint to flexibility have to really in efficient of is the also of they the at but be bring with maximize brand, large having resources. AZ the

this to also we’re have we're in have half think positioned in there, launch a do to that well way. and smart expecting the it but of So, I great a efficient second launch still year,

Ram Selvaraju

perhaps. existing very down versus quick refinancing were of just the payment to and possibility prioritize of Gina know about think debt and then Okay the for entertaining potential at road one of Wanted as it how dividend. the the a question you some philosophical the point

Gina Consylman

Great question.

we've that soon. $XX we’re is that that, the priority as with will the we're quarter such refinancing restructure prior, on reasons our focused on our So, debt key with is than dividend. I that working debt that noted of one those sheet strong noted in quite priorities tell it adjusted priorities at is strengthening one of financial right have to a a we one advisors I'm two you that we're a with our key and and can our that And focused focused sure, more now optimistic EBITDA balance one million, we that that of on. able top I'm be that

a tell want take a that. certainly meaningful over get you once way a that that I communicate regarding expected to make versus really and sure a dividend we dividend, get a can look Now we we And at we where cash will are buyback, a first look in we place generating there, period time. of plans. certainly a sustainable a flows our to to at we're take

Ram Selvaraju

Thank much. you very

Operator

question the Chiang Tim next is open. BTIG, with your line from comes line of Your

Tim Chiang

to to congratulate target. execute great had you Ironwood wanted on a just target of to I profitability. that see and on guys you first it’s I guys as this Mark, set you know quarter thanks. getting Hi it’s

first and my to, now is shown really year-over-year LINZESS double-digit question obviously growth. So, you've

over and to Now, XXXX sort the and the how do are you heading of sort of what months? of look pushes, at XX half LINZESS the volume into growth back the polls next XXXX six in

Mark Mallon

Tim. Thanks,

job it year. first and done So team this the let in for that that's really to a thank the that, of really goes say really, great that your me you congratulations has half

answer your can Tom – in growth or question think growth how about see I the we to progress. continuing

Tom McCourt

actually share thoughts. to delighted Thanks, our

to the guess really for We've seen track. As is acceleration removal generic the strong I in obviously due of brand brand. the some on very a dynamic MiraLAX. mentioned, very, momentum whole market But a growth looking actually favorable the and you very is part

sensitive think have of consumer the the the plan are broad, we're looking to we harder certainly our the opportunity there's side, I side are think, levers more looking awareness, what forward, construct as brand very, one on very to the the to to hard for possibly things requests. willingness and around consumer we investment at going honor we broad push we broad patient particularly year as access push because an that such is be we're also next

So, we're actually symptoms. running the with the campaign of actually with abdominal tests of the new heavy-up in a here series – launch

understand how only the really brand growth we can performance. overall optimize but not So maximize

So, obviously very what And expecting by bullish we're seeing. I think good things very we're to encouraged come. we're and

Tim Chiang

Okay, quarters. And, SG&A expenses, next numbers expect Obviously benefiting follow-up the the over it's the spin-out that for those you're Gina. going of the a would rates forward from Cyclerion operating are the several you off had I and guys books, for of you that reported spinning lower R&D great. to run sort

Gina Consylman

that's good Well, question. a

future to I would just operations in achieving EBITDA with Cyclerion. full nice then run that given year. continuing first could an our use than million discontinued operations as guidance. We our is It's a guidance the reiterate this this committed I are greater clean quarter you rate. think year no from haven't that But quarterly indication do of quarter we And the that, for guidance $XX

Mark Mallon

this of our sales strongly I brand believe thoughts with aligned partner marketing couple on grow. and that, a we and can continue to add just standpoint, From can are think that. I Maybe a Allergan

presence strong behind continue we've it. We've look and got so and to that And think a expect we DTC the opportunities. promotional sustain for a continue got to push. right size to effort good I sales got we'll We've

more, If will think I've But do this, we as even at order magnitude. opportunities they see that. the before, said of to right do I right probably

and running terms see X X on XXXX. up we've you XXXX, with Phase full got In of the Phase R&D, now the now and

certainly those running. through So that's year And XXXX. through, and into continue of the are trials up this rest and going to

couple kind of at Ironwood of quarters mind factors in those forward but you you're So, additional guidance think not time. next about we're can think providing trying keep going if to this the I in

Tim Chiang

pretty to you guys last guys good. in question. of commercial first the that it that quarter, the XX% rest Obviously range the year for Maybe margin fall as to XX% the comparable with to I into, think is the commercial you just sort what mean was expect of I was margin one report well.

Gina Consylman

I'll one. take that

expect provided margin. well. still to right. We that as we the had We continue increase are thought time. You're XX% achieve approximately we the the numbers point, this XX% quarter that XX% previously could – expecting year-to-date would for we And market guided, over to XX% some at could we and

Tim Chiang

Okay, great. Thanks.

Operator

from Instructions] Your [Operator comes Fargo, the line of with line question open. is next David Maris Wells your

David Maris

Hi. A A Hi. afternoon. few Good questions. few questions.

be restructuring you the you anticipate that the just the with entail on to replacing debt, follow-up not would wouldn't, of a this just would First, clear or debt price, current at equity. equity

if to, any what The was that you second Thanks. just is, remarks continuing I about you Sarissa from currently something the are that suggestions early, that know mentioned to you're restate there and it. contemplating? missed options. didn't referring that's just all current prepared something And explore strategic could I in

Mark Mallon

on clarify couple question Gina the let debt the the questions. around restructuring other I'll and follow-up take I’ll and of

Gina Consylman

this equity that our are operations. no And cash to There current would generate fund periods be Great. to we do the in that at to we time. have to plans reiterate, no, future enough just any issue Sure. expect expect we

the debt is equity on solely issuance. So, debt and there no focused

Mark Mallon

first also our of capital, the at growth example, to I with looking driving want moving organization accelerate profitability improve the the So, what priorities company. in to a about bit the to at LINZESS more our use terms little for we of the options for reiterate, first for and as question all both And then maximizing, did of taking and the for headquarters, pipeline. steps, with, trying of are

changes we many longer we do sustaining what's And that as get about we from an also our need make, debt. haven’t restructuring future and sources which growth? we and variety structural that looking all what we're for continue term to we options to, mean the make business, right doing review an think of do, any the need is ahead And company, size what's sort we we there long-term can of sure are when about we do are I by the to right that, active companies what as we we not of also the consider, shareholders. in What structure wanted look don't saying are maximize to the commented more take, for organization. that, I that to off on but value specifically terms signal calls could We, in ideas we're a on at the anything don't, that table taking think, actions

but don't about And of discussions. shareholders, then a of your one with we discussions we all those shareholders have on basis, our regular we our discuss don't, Sarissa, question

that. shareholders make and, certainly to don’t listen that. act all do in ideas and work doing of on We that, our comment that we're build that we on the to further we But on try for sense

Operator

Your from Berenberg the comes Patrick open. with Trucchio is question of next your line line Capital,

Patrick Trucchio

afternoon. up AbbVie I've follow Good a Thanks. the on got transaction.

XXXX, to anticipate And are early with at AbbVie at in with historically to would collaboration closes consistent any deal the the don't AbbVie? gain Allergan? team you that you have do with transition Allergan the capabilities there from currently you worked remain that Assuming a you've that

Mark Mallon

Okay.

I has from I there partnership has to as closely at earlier, is team Allergan, no LINZESS focused on our the staying work had Allergan of and focus we've have efforts first continuing seeing medical brought So, so great a is all lot support They perspective. disruption capabilities with capabilities and they'll strong some said a they've mean, worked consumer, great continue in company done AbbVie, a many do think really and and certainly that. great and areas well. in inpatient programs. AbbVie I But

we any be assume, they're support the early point to to points. going LINZESS, the about for this or process, talking it's think in continue these of will So, at I very

tuned. grow So continuing Allergan. stay brand the now, with is the Right to focus

Patrick Trucchio

one for for included Can of savings XXXX? is much quick headquarters. and result a guidance to your you of Just XXXX Gina the will in, will part be in move this on quantify the the, how new

Gina Consylman

actually, million and that's years of The to expecting next five in the QX XXXX savings $XX year. over cash the in move amount of will really we're begin because this in

Patrick Trucchio

much. Okay. Thanks very

Operator

no at the are will to time. turn call over further There presenters. I this the questions back

Mark Mallon

Appreciate is help the our you say available from the call any everybody the on I for much very today. follow-up want thank operator. there very questions Okay. to always. call as to Thank joining And much. here The team answer you

reach please out So, free Meredith, feel to to to coordinate.

And value and again, thanks for your time driving shareholders and great everyone. patients. delivering interest. and keep our a to We're Have excited day forward to

Operator

disconnect. This call, may now you concludes today's conference

Ironwood Pharmaceuticals (IRWD) 30 Jul 192019 Q2 Earnings call transcript