IRWD - Earnings call transcript Q3 2019 | Ironwood Pharmaceuticals, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Ironwood Pharmaceuticals Third Quarter 2019 Investor Update Conference Call. At this time all participants are in a listen-only mode. And after the speaker’s presentation there will be a question-and-answer session [Operator Instructions]

I'd now like to turn the conference over to your speaker today, Meredith Kaya. Please go ahead ma'am.

Meredith Kaya

for for thanks XXXX third and Update. Investor morning, joining our us quarter Good

crossed this the be release press Our wire our www.ironwoodpharma.com. found morning 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 June 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.

Mallon an by financial discussing and quarter will Gina close development will During commercial today's results and Consylman financial begin progress; our the call, overview quarter; our McCourt highlight with guidance. Mark and will Tom XXXX of third

portion will available be Shetzline the the during Mike call. Q&A also of

the via We referring to will be slides webcast.

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

I that will With turn the Mark. call to over

Mark Mallon

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

be to tirelessly new to and smooth this contributed I'd really from live space. inspiring officially all to And of the our new colleagues our office to ensure feels are It like those worked Boston. to We creating workspace. good Downtown, Boston in transition effort. in collaborative an while who thank Many

advance marked across had third to our quarter pipeline its to continued profit. continue LINZESS, priorities: results. our execution Turning by of deliver to quarters one accelerate core to and our Ironwood strongest three date,

$XXX continues during extended million the and new-to-brand, double-digit hitting period to into LINZESS. prescription year-over-year translating units the quarter. in First, show third growth both in U.S. demand of LINZESS sales all-time high

growth As sales. low we compares of our momentum, to year-over-year net in this percent of mid-single-digit a This result guidance single-digit continued to mid growth. now expect previous

is further Top line XXXX, with pain than expected in for studies. GI Phase treatment data IBS-D into of advancing late-stage abdominal of in II our candidate faster product is the enrollment. associated due Second, XXXX pipeline instead our mid-XXXX to half second now expected for of clinical

two patient excited new each of about treatment are they our populations. III XXXX as persistent potential candidate We both and XXXX, for represent and underserved Phase large GERD and options for innovative product treatment the

the partnerships And and recorded was Astellas profitability third, by ex disciplined and GAAP non-GAAP investments. operational for with AstraZeneca we U.S. amended our linaclotide driven third strong and quarter, execution, which

pleased EBITDA operations result, XXXX Gina about would again announce our talk continuing on and like I to to focus more later this raising I'm will As and from today the we a are their hard business. our adjusted continued team the for revenue work that on guidance. But congratulate call.

secured number our or build across results, thrilled team commercial in GI community months. within The areas working our We Acute second other critical awareness to made the Hepatic about great these to Beyond core Alnylam six progress a be partnership strategy. than with we Porphyria less significant to of is AHP.

VIBERZI. The approved, about among in sales are Alnylam's their combination further if awareness enhancing efforts promotional need and productivity in physicians is patients, bringing desperate And LINZESS will who increasing we with AHP for to AHP, already givosiran help their force treatment. of

and therapeutics important GI the potential tool within looking we're their them the to an have for forward specifically prescription to about believe explore innovative evaluate Pear PDTs the the become of Additionally, of digital agreement GI. to future digital are or just to announced Therapeutics therapeutics. therapeutics excited within entered emerging digital into an with area Pear yesterday working in the space. we We developing indications PDTs for selected we that patients treatment with

biostatistics, Lastly adding we finance, development corporate regulatory and senior strengthened strong and importantly, leaders HR. in Ironwood by

energized to patients bring mission committed Our is medicines to GI delivering leadership with on and living team our to diseases. new

We made since do the more new launch that our as as April, Ironwood. have a value progress deliver evidenced recognize we of achievements, but have on potential company by these creation significant to last we to

there yet foremost, existing portfolio. continue be we to unleashed to priorities. within is core must believe on value First execute and our We our tremendous

business management Beyond team on mission. and are that, our Board our and our further deliver strengthen to options exploring

turn performance. Tom I'll to and that, commercial our discuss to it With pipeline over Tom?

Tom McCourt

Thanks, Mark.

the Our continued to prescription was our by XXXX. compared prescriptions in were XX% demand, commercial up the the quarter third increased of quarter third LINZESS XX% during third impressively, driven year-over-year growth the during quarter. And performance LINZESS. new-to-brand,

than the For became LINZESS the during any option. or first branded is time one it treatment, meaning third ever, number more and quarter, chronic the other prescribed IBS-C generic constipation prescribed

IIIb the occasional last we our grew this announced to introduced abdominal sales June. million compared DTC symptom campaign time market, nearly U.S. withdrawal the impact for of from a last materials X% continued the consumer growth launch April from generic September our in the factors, refreshed of to and this of attribute We MiraLAX including LINZESS year. positive in number data constipation and $XXX the to then prescription Phase that

each one Let briefly of about these. talk me

having was are First, have more this strong LINZESS to of growth seen but choosing major patients. lasting the LINZESS different we to prescription disruption options, that year. are IBS-C effect, this seeking withdrawal MiraLAX their the prescription of this patients, category. constipation and now for seems physicians only in be Not contributing a last chronic a And November

communicating in data, symptoms to abdominal discomfort July, our sales and the LINZESS Regarding physicians abdominal began pain with symptom force our in bloating, Phase of in overall III IBS-C. delivered patients about benefit relieving

discomfort. materials We year. this including with new and our FDA bloating plan state disease a include supplemental We reference application about the symptoms file to in also abdominal the a to refreshed later September including information to consumer drug IBS-C,

ahead, including patient addressable we the other cycle our continue believe are population, there's in linaclotide. and significant that mechanism such We of life as to our possibly brand. evaluating of Allergan continue utility to strengthen expanding to indications management and pediatrics to understanding the enhancing or opportunities Looking clinical grow the several,

a treat with certain GI patients IBS our patients as XXXX, delayed-release pipeline. and intestinal I'll portion linaclotide to pain with Estimates associated pain developing pain. with from GI Turning GI of suggest nonopioid formulation conditions start a for their abdominal of chronically to use are our that relieving we agent opioids disorders. including that significant Allergan suffering

events a nonopioid GI generally with drug GI developing with associated risks potential specifically is the disorders, patients Given opioid and for critical need. pain of adverse the

are in past IBS-D in initially associated study treatment We Enrollment trial mid-XXXX Phase XXXX. year. a Phase of exploring topline study very this early data now of the half versus the going with expecting is XXXX well. with XXXX this are would as as data in II May. these are expectation initiated to second a results initiate And the If we III for pain result, and original Phase a II our end we next as pivotal of expect positive, of

not at to meeting pain impact showing for a pain study These with week last Gastroenterology associated to of the did as data abdominal of exploring supports volunteers. relieving College XXXX Phase of Phase in desired that, data data IBS-D. consistency rationale XXXX effect IBS-C or American healthy I stool bowel our presented positive movement function our and the relieve complement II XXXX abdominal related further for We

to the trials persistent efficacy to continue bothersome The treatment on potential symptoms bile enroll regurgitation patients. to acid heartburn. designed most and are two of sequestrant XXXX, Phase of GERD. evaluate Turning GERD; our and X for persistent These trials the safety

enrolled Patients to have meaning As are rigorous they a a reminder, intended acid positive endoscopy. which to in trial. the positive requires studies Bravo required these appropriate test patients for are an reflux ensure are test,

non-erosive esophagitis GERD are we patients. enrolling both Additionally, erosive and patients

study have the to-date. enrolled of the enrollment has we due than over to originally We the study, But been of expected. slower demands half

target XXXX. At the of in half topline second continue to time, this data we

recruiting to monitoring enrollment as have already actions central We taken introducing are support it further and closely. such

of opportunities to support additional number and we update expect a to to you considering also enrollment are as move forward. We continue

an potential for it from care sharing for suffer continue despite We heartburn as more forward. million standard program of on to who with patients excited move regurgitation do XXXX you look represents to improve both to as XX and opportunity about are estimated taking the forward care important this We very an we believe PPI. we

portfolio As as I team and company. LINZESS and XXXX mentioned, continues broader GI among community, a a to There further the and leaders ACG Ironwood about GI key were noticeable. the the is around XXXX, at Meeting be establishing opinion excitement buzz GI significant our and both leading of Ironwood us

the for that, our over to With turn quarter. discuss results call Gina financial to the I'll

Gina Consylman

Thanks Tom.

mentioned, true one strongest in to that from revenue GAAP our as operations EBITDA to-date in especially it well operations. as total As recorded million income $XX and in quarters highest adjusted our and net $XXX million Mark million third quarter financials. from ever was our the relates $XX revenue, is as We continuing recorded of continuing

review will the profits. continue details refer I that our our simplify our release to our and capital additional steps taken on guidance. Over these quarter. grow structure, outline for will next few financials Please XXXX to minutes, have to Further, our the press I strengthen we updated financial for business,

globally, enable the Both Astellas in in these two amending AstraZeneca in partnerships our these to patients with Japan our to Allergan, to to were the Astellas, of and with objectives partnerships First, bring in creation of from to strategy strong we and these linaclotide focus business in to AstraZeneca responsibilities continue by each linaclotide manufacturing U.S.; China. of eliminate simplified mind; and ex-U.S. share like opportunities. with amended value and our partners

in resulted linaclotide license in Starting third Astellas. supply Japan $XX milestone in In for with responsibilities full of with recorded approximately linaclotide these manufacturing the XXXX, our aggregate, the quarter. partnership Astellas during will million API. assume Beginning revenue including amendments in and

in return, million third the Astellas paid a IronWood $XX upfront quarter. recorded payment In

low aggregate will based net sales of in beginning to Astellas double-digit in mid-single-digit on Ironwood also escalating and the percent territory. the percent the LINZESS pay royalties

approximately Astellas expect and be XXXX, Ironwood API $XX the revenue In to upfront to including million continues sales million $XX payment. from

and As we we'll revenues in will be we to be XXXX, API revenues Astellas. in no will from recognizing longer supplying therefore, Starting royalties only a beyond. record not from reminder, XXXX Astellas. And API

manufacture and rights obtained linaclotide. commercialize develop China, In exclusive AstraZeneca to

funding result, longer jointly in sharing linaclotide As profit the be in China. or will a net we and commercialization the development of no

$XXX accrete to and interest milestone the income up the In up collaboration remaining million through quarter return third Ironwood of $XX non-contingent million recorded approximately will in $XX the non-contingent million payments million in XXXX. commercial including as to will revenue million and $XX in We million $XX receive $X milestones as payments.

net sales receive and Additionally, LINZESS increasing tiered Ironwood to will in based the aggregate China. of in percent mid-single-digit royalties on up XX% beginning

about excited training. are in soon. of We LINZESS has expected available is which to the AstraZeneca is very field and occur Product China, completed the launch already force

effort our convertible notes. Moving strengthen restructured issuing to structure to capital in our expense $XXX interest our August we cash over few our and past debt. million years lower the an this next by debt In

off With these X.XXX% repurchased proceeds $XXX entirety of notes. convertible we their in notes balance XXXX and paid of the remaining our our million

of a aware that as and effect potential XXXX notes the of amount are the We dilution with to guided result cash. instrument convertible in we remaining settle principal expect have the the

cash settle and in Additionally, on current the believe notes we we option projections to well. based XXXX have will as our cash XXXX our that

out years release expected behind flexibility. see structure business, maintaining strategic allows over interest obligations few our maturities these next for still debt of terms new and core financial of converts. the cash new press our enables Please our time lowers smooth investment Our payments our us debt while the operational to considerably over and the

our to for finally year guidance Turning full XXXX.

guidance. Mark mentioned, able thrilled our to financial XXXX be are we As raise to

range As of the and strong the two be license recorded continuing and to in in for $XXX adjusted a $XXX This million past during expect reflects result be million the we to million the now $XX of operations million. from to XXXX revenues quarter. our greater than EBITDA of milestones performance quarters in $XXX

guidance. Continuing our XXXX

$XX approximately now we approximately million expect the And also mentioned expect earlier, expenses mid-single-digit $X percent. sales growth to in expenses be LINZESS as Mark separation net restructuring We be now year-over-year to million.

some that, will closing With for I it to we comments begin Q&A. turn back before Mark over

Mark Mallon

to to Ironwood excellent so these Thanks Gina hard and working team thanks the results. entire for achieve

of we past since the months our to to progress believe well are decisive strong forward a all have number LINZESS continue demand the becoming our Ironwood of to and positioned our and financials continued growing steps strong and look taken demonstrated a to you. improving operations with against of execution over both are advance show to summary, XXXX toward priorities. continued finally has And strengthening XXXX. sharing core has growth we our vision and separation profits. company In leading advancing our seven We we GI

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

[Operator open. from of line comes And question with is your first David Morgan Instructions] line Go ahead Stanley. the your Lebowitz please,

Unidentified Analyst

Ishmael taking for is [ph] This questions. on Hi. David. you for Thank

First can a for and what given of slower-than-expected in a that. patients XXXX? the And follow-up after population to factors demand I are GERD the enrollment large on elaborate have you refractory leading

Mark Mallon

Okay. Thanks Ishmael. Thank our Mike I'm to you. head take to question. R&D ask going of that

Mike Shetzline

Yeah, certainly.

thanks So question. for the

in that established enrolled. trial. with earlier reflux a as really to endoscopy. expected patients totally fashion are an studies ensure these two gastroesophageal patients development includes mentioned the well in rigorous and designed with reminder enroll requires program As over disease patients a as Tom ThatX be to big appropriate XXXX we We the

patients needs to been originally to line this for continue they to acid slower In ensure Bravo XXXX. implemented than end this the the be addition At have and reflux. technology target data enrollment top Bravo time, of continued require we to Due expected. a has

Unidentified Analyst

follow-up for very And That's Okay. my question. helpful. Great.

Mark Mallon

Did you have questions? second a

Unidentified Analyst

Of course.

increases marketing moving seen data give abdominal you guidance this forward? you around boost have updated mentioned with mid-single-digit And help you updates can Thank how and the data to the may already communication. expectations net volumes your details sales On you. and of symptoms in

Mark Mallon

I'll ask to that. answer Tom

Tom McCourt

Yes. Thanks.

symptoms with MiraLAX, out which Initially, be to is broadening generic think since of really appropriate their combined I sales And I they're that's additional about choices. the clearly removal to focal patient. at prescription we've the And by obviously -- patients clearly as looking physicians it's these the going point of far two physicians that that is talking of aware June benefits driven appropriate these of been view boosting things. which for is of be fully making set sure making initially decisions. our been and those care a and think are really drug of would broader expanded that point LINZESS as

consumer this on the The is certainly is side. second strategy. two-pronged piece And a

all, choice. their prevalent obviously physicians are further dialogue the and often and which And symptoms care, LINZESS First well patients of are symptoms be abdominal who problematic sure as that patients those are educating at discomfort and bloating aware most and between enhance of will can point making of patients, that relieved. improve a

population care associated that suffering million response but of is piece we second The relief. broader from chronic that's in what in who And constipation sufferers, get are strategy excess seeking symptoms abdominal tremendous DTC not is effort. probably seen actively suffering. the and really of of have XX can with are patients, the promotional frequent And who

we adding FDA. to visible we initially by of be we and we'll as on and move those claims the added clearance portion it So, solely forward add, get to it with more net expanding the the add the approval make that disease focused as

far these new opportunity about the So physicians. and data we're as that provide patients very excited helping very, us as

Unidentified Analyst

question. Great. you for taking Thank my

Operator

comes your of from next Go from ahead, Securities. question the Hughes Wells line Instructions] Jacob Fargo [Operator please. And

open. Your line is

Jacob Hughes

Hi. morning, gentlemen. Good

Mark Mallon

Hi. Jacob.

the the there On guidance versus sales as net And single-digits one mid the prior? erosion increase, LINZESS is price growth then, to assumption I what follow-up. high have just the changed on

Mark Mallon

to Gina I'm or ask answer Yeah. to to question. your going comment

Gina Consylman

question. the for you Thank Sure.

third to for said price to erosion end As quarter times for first higher also were the did throughout were guidance to that we QX But, where we trending in you bounce versus that And we gross we towards about different the definitely guide year. few as this around. year, able and in the well. various small price single-digit in a quarters we're mid calls recall, in high a earlier as see of does is, this XXXX the have uptick will optimistic QX and we be lot these net of to of

many had to optimistic and XXXX. So, to And maybe as in mix to now we're erosion to still somewhat the erosion closely for competition high XXXX. very within with the guiding that we that Allergan clarify, we we'll forecast able lessened XXXX, a such we for mitigate to the result, erosion just working will We're in are of right be price range price XXXX. single-digit are mid the optimistic almost our in really XXXX the the impact in that for items consolidation payments on and that that guided XXXX as that that collided be price of further

Jacob Hughes

you then internally. commented that about active review And Understood. Okay. doing XQ you're call, on I think the secondly, an

I oriented, date? think longer-term anything of that more but come has it's out to

Mark Mallon

GI doing landscape a available. where the the see what we the what with So, think where of assets we perspective from are and to happening, we diseases need science did -- highest a a unmet of kinds referring are, we breaking said we're seeing see review I you're do

leader on that's that us incumbent landscape make I sure sort GI think as what to in upon clear a we're is. of

At our the delivering same focus our time, three profit. our priorities: on growing LINZESS accelerating and pipeline on sales, remains

of So any we business high the is sort activity that development bar for pursue.

being requests getting partnered. have are We and regular assets be by could that people seen that

hear, patients focused core so something we're -- on But see staying deliver that's we'll there's to we're in And the but that our priorities. shareholders. going continue meantime, if great to evaluate to and that and to value could to

Jacob Hughes

Okay. Thank very much. you

Mark Mallon

you. Thank Okay.

Operator

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

Your line is open.

Eric Joseph

Thanks guys. Hey, questions. taking the for

Mark Mallon

Eric. Hi,

Eric Joseph

Hi.

around reluctance to to Just it IW-XXXX on Is follow-up. a with post and you're a then rates have greater compared endoscopy the And part assessment? I the I higher undergo endoscopy. failure that of follow-up experiencing, recruitment patients than expected your on or Phase comments guess III expectations

Mark Mallon

Mike?

Mike Shetzline

enrollment sure have aware to as more mean, clinical actually more challenging answer through in good I'm That's a go gets I as patients Yeah. procedures. you're question. the And as is both. trials

informed patients not some does for through going actual they execution the So of and compromise procedure consent to enroll. the the decide

And patients. we broad other -- to them GERD acid of of but overall reflux have order a or side residual And indication, exposure that want well. the want an in as pursue spectrum we to

ensure what So technology to the GERD. there acid have Bravo have to ensures adequate patients is they

to pass they the things that the And to actually in of have the have Bravo. test one And so patients speak to so other ability that that compromises is and a study. positive enroll

is both fronts. So correct that on

Eric Joseph

about this the guess experience? for related that, differently population you Okay. thinking threshold more Phase the in any is about just eligibility the trial? I III additional Or -- in patient of to the patient patient are your sizing the

Mark Mallon

Tom?

Tom McCourt

Mark. the not Thanks all. question this -- Without at has opportunity wavered

In the into I fact, we've what I about -- symptoms, the think effect more the got as role as our even of as as bile more the mechanics regard we're as disease potential. the to our and optimistic ability to improve data learned well GERD the on of with well we've in think

from as in to really mentioned heartburn, of majority And to alone. continue is ongoing million regurgitation, also to which problematic but heartburn think really I spite most there's that stands of eight we're continuing the And problematic XXXX Americans importance we consistently PPIs. suffer of the for these I think heartburn And I think is patients. more and piece see symptom million taking the certainly XX the that where regurgitation striking that's

in benefit regurgitation. encouraged really we're has I And has that before front saw us. if we ever opportunity the nothing Phase in very, that's think really feel very mirror II, There's that -- we by III of what seen data on magnitude the Phase commercial this been of

in we appropriate I do sure there. conduct to that action very a and make want in we the recognize make we patients rigorous sure study the have But that

of will to absolutely sure said, Mike be the succeed able the to drug the really that to it's to us right but create want enable As make patients we profile commercially. challenging we have

Mark Mallon

this the to thought. Mike to for have a add is Tom do I of one despite had get say to sites investigator chance and a this challenging program is out sites program sites high. I've and that's have just the program. other And want and number I And big team. of really to it's -- for a visit a qualitative enthusiasm as and members

being patients of screen. lots in there's So

bile these I they really are gastroenterologists. a suffering, patients that the have new -- playing. are of they're think sites These solution these in might what is about many -- and they They be excited coming it's sites understand And and the that behind what the professional and role say need possibilities.

just exist And from previous together, know reinforces of we a quantitative and unmet already these so that all that numbers patients factoring work the need. think that our significant there's I really

Eric Joseph

hop One quick back one if I'll I queue. and could in

that the North you expanding U.S. you number of trials contemplate and be on bring to to do is sites, the outside look Canada? As America? within similarly Or of going

Mark Mallon

stay North It in America. will

Eric Joseph

Thanks a lot, guys.

Mark Mallon

Thanks, Eric.

Operator

please. Your line next the BTIG. question Chiang with from Go Tim comes ahead of

line is open. Your

Tim Chiang

Hi, thanks.

Mark Mallon

Hi, Tim.

Tim Chiang

Hi, Mark.

obviously, EBITDA. just you're at business model, your looking So generating more

do sort trying wanted what might you really Now on mean, on you're pricing to positive optimize Obviously to improve of you'll that. you focus terms year get think focused of profitability. I LINZESS? some. of sort pricing target to LINZESS? in items with I trends thoughts Can potentially next next year your get

Mark Mallon

I'll me let part and second So take let Tom the first part. answer the

So, again, in that believe of price XXXX don't say a today. to we'll see see have from erosion going level But price we we're that we increase. the moderation that we

expectation. be think healthcare, wouldn't the environment I in of current a that, that realistic

over to to Tom that. drop this it if line. we're continued increase the then we to net to of I'll with more by the revenue bottom as our erosion think I focus for we're I the year, more going this specifics And And are -- you the able about on levers to turn XXXX. guidance for to But sales strong shown answer where be certainly think going growth, slower have

Tom McCourt

Yes. Thanks Mark.

brand now. I healthy think about right excited we're really how the is

plans as this brand. companies finalizing promotionally and the growth see extremely for XXXX in is year know acceleration in that responsive. seven, to that the We patients a all growth, a brand lot invest of still we know seeing a our there's in these in market out We brand patients we're are fully If that growth you as are the as about fact think we, this an there. aligned

side, I symptoms patients. the So think consumer additional striking there's office certainly, physician's these they're appropriate are -- but been choosing of view things two the that broadening still tremendous on the abdominal clearly patient in the and there's think have opportunity, one, more physician's I is:

other launched or also Tim, that we've ago, program, the year we think we of program. because portion thing is the a we I XX that patients saw the large so first of XX-day adherence which therapy seen the initiated discontinuing in days. This a

they're not we adequate largely we they're And increase by discontinuing takes once pain relief. adherence the And And it that. over to six getting weeks, know we because to eight weeks six have to them XX%. overall get

has XX-day the but benefit, increases growth, adherence this enables annual therapy. overall what also the days size you're driving the So days -- the the of prescriptions and program demand to in seeing reflected it both done, it's overall overall that is that patients of realize of it

think, to motivate to continue to as One, can appropriate expand to year, things. care. I physician's these we So I broaden seek periods I we and and to We look I to patients going of time. want view And patients for think patients. longer try next to on continue come there's at we're hang the continue three to think of think,

more So valuable. each patient becomes

is Mark's point, very we're to with what to think realistic going mean I happen we about price. being

the just to that we the want we're try everything on control the unforeseen darn place always happen. sure to make that think done -- we've drive we can in to overall hold growth there's price, And I line but things got think brand. things I and of health the controlling we've that

Tim Chiang

next for I question. we your helpful. there expect you've could really How around one million much a That's It's had is next Obviously, at financial this for obviously, interest year? lower new in that -- for of guidance Gina. year. you a expense quantify debt sort cost I net reissued interest should figure $XX savings question rate. what I a is mean, year? convertible much way follow-up mean,

Gina Consylman

lower that That's a it great opposed of us, important thought the why will one provide payments as just and expense. for cash I was overall areas the to is that interest reiterate lower rates question. interest I And

related So maybe, just a to comments couple of that.

I expense million for for XXXX is asked end the about give us, in overall XXXX of color from know of the about little you less bit XXXX, is but but component the well. for just I'll you less $X The $X million cash August a to as year.

But component year. for XXXX, to we indication, cash savings will give more the you opposed And actual for guidance XXXX. next than for savings to probably $X to doubled so as giving an this be $X for year, early the then million in million closer

Operator

And line of with Boris ahead your comes next please. from question Go Cowen. the Peaker

open. is line Your

Boris Peaker

Great.

guidance you at point just blockbuster for given Several a years reissuing a then for target was and the Just longer-term which in LINZESS anticipate maybe question on and trajectory LINZESS. current some ago sales, had the threshold? kind long-term reaching a later I'm your you annual thoughts $X time billion line reaching of pulled. curious, pricing on do discounting,

Mark Mallon

Yes.

of will not appropriately I'm ready to unmet to at comment investors will we're to whether help And the strengthening as excited other this There's issue think number brand. to the are yet. very So, and continue billion discuss we need, LINZESS. are guidance think value we on what need And, patients know we this in plus huge we same. a growth certainly future that think, the business. than $X I point, on that, LINZESS aiming not remains to of but But a our think, that the to make getting ambition with that huge I said, I say

plus deliver still that on aspiring billion we're $X so And to ambition.

Boris Peaker

And an do of you effect need move see expansion program? it Great. just kind at forward that curious for the need III doing, to size, to to in looking for what Phase a Phase LINZESS, order the in do II? see abdominal you're into pain study What you

Mark Mallon

about So talking just you're to confirm XXXX?

Boris Peaker

Yes.

Mark Mallon

turn Mike. Okay. that I'll over to

Mike Shetzline

Yes.

and as you XXXX that the focusing study program In IBS-D. in IBS-D. is XXXX question. And study, pain So know benefit it's good a we're starting initially the the in IBS-D, on

important the as focused benefit. has as that pattern is well in bowel IBS-D nuance because the other So on therapies an pain

a space GI in therapeutic we're as effect, So new a in for pain pain.

to with the the targeting population so estimated IBS-D you in which products had benefit as as will well meaningful we consistent we've about development the that's hopefully are And after see that program clinically that as on XX%, in II study that benefit be a benefit Phase because design as full pain the be a the benefit. successful the bowel worked that frequency II we a study. And again FDA with Phase for

Mark Mallon

that a I are this global quite only endpoint. And -- VIBERZI come the perspective effect see first IBS-D doing commercial can for we that in mean need the to pain. -- huge at study. what with we we VIBERZI see that's endpoint currently IBS-C unmet of The And utility drug a that IBS-D is pain be quite significant. think achieved is to certainly out the appears having really safe. as know habit on no has relieve but that really data medical we're look you we beyond it, neither or IBS-C I bowel and this but that's work where endpoint, composite able were out treatments a existing pain hit from there, if XIFAXAN really responder the endpoint has nobody And

a opportunity go creates we growth area do very where is for for is for very, next, It whole a large new challenge the because linaclotide. Now this us.

Boris Peaker

is sure, target making confirm response. just a understand Just pain to the So on improvement XX% your score? I

Mike Shetzline

the patient in responding It's point. study. in end improvement XX% improvement XX% responder per

Boris Peaker

Got you.

taking Okay, for question. my great. Thanks

Mark Mallon

Thanks, Boris.

Operator

line Ram comes H.C. of Go Selvaraju next with ahead Your [Operator the Instructions] Wainwright. from please. question

line is open. Your

Ram Selvaraju

much taking question. my for so Thanks Hi.

Mark Mallon

Ram. Hi,

Ram Selvaraju

metrics how pricing us what Alnylam. if on is wanted I about that for the to one the overlap the an PDUFA confirm of you work? recap much. be if Thanks. opportunity product? currently the background the I what what givosiran going you sales in also market give us force maybe idea would Hi. X, helpful And partnership ask just would fact is had date is doing? situation to Thanks to maybe XXXX? then the would so February And could your relative specifically -- also perhaps to with partnership follow-up. that that prescriber be likely relationship could and is give And givosiran be it some I And

Mark Mallon

yes. -- So

synergy of couple and defer PDUFA their of of shared a doing. Tom opportunity will sort scope to an sort are let to a bit We're then -- pricing. exciting details those that That's about of responsibility. There And of partnership. Alnylam. for with and talk work little we're market just the I'll example Gina in it's we of the such date questions like things. the the going what recap couple the a we've why the So there the see around

Tom McCourt

porphyria and I extremely saw Mark. the a disease. disease. of the And symptom primary even reason in hepatic it's cause. an involved really that the to acute people is us underlying is pain. intractable is these option partnership most think Alnylam about Thanks, attractive why getting And suffer as don't This people far is Yes. this the severe rare us the why value debilitating from abdominal mean, an as as

So by -- patients seen their journey. these and almost are times in multiple gastroenterologists all of patient

certainly as the educating current right So well our drug. doing there gets approved customers the of to the was drug we're a on for benefits actively us disease which a play the now as role opportunity clear

patients. to primarily role our is identify So

with rare challenge do we orphan or patients is where how here disease diseases and are the Now any identify them. those

working we're that. with do very Alnylam So to closely

estimates broad for range for really we unknown. of the of care help there's of And the debilitating an to I pretty a opportunity disease. So improve overall it's our very very, customers And quite disease. us prevalence think a see

at company. to for future look orphan opportunities also It opportunity the to creates for we disease learn diseases market us rare in the or how about as

I going well. heard the the with The field customers. very we've think very, that excited is already encouraging So existing we're is extremely The in collaboration with our opportunity. about very response Alnylam

probably but symptoms have only evaluated. they properly that there not that haven't belief patients they just got the do engagement or the We

So move to Gina the as we I'll specifically lot learn to it turn the forward, overall next obviously our opportunity, kind in commercial a we'll over but with regard talk or arrangement. two of financial about more to year more

Gina Consylman

But XXXX to expecting December actually later includes see to million be XX-Q few of contract share through and term as payments. time are and XXXX you'll -- total is to fixed we our just a file a just things to the able today until that bit you. about be And detail more you'll One Sure. $X.X August with that well. able see

about recognize this then with to expect of consideration also insight the quarter. addition $XXX,XXX contract this basis recognized quarterly partial and our to quarter a was there's of you So approximately that's little in first of part we give bit on our what to revenue royalties a And a that. is co-promote. It and quarter we

Ram Selvaraju

that us related is introduction Okay. you the linaclotide? generics? a to availability how if market? generics of you the the Great. in you of you. expect And you of just when the the if And sense product which of significantly expect enter ahead generics that give is case not And linaclotide plecanatide anticipating Thank Givosiran. to introduction of then approximately are one generics generics of plecanatide for Can just for advance follow-up far

Mark Mallon

when minimal So at marketplace. IP their have as in presence they But are I comment where on plecanatide I far can't as really, -- status. look the a we the and obviously marketplace in

And linaclotide very overall profile. that well we've patients we've been think strong that what seeing as the to with both very, obviously that I we're to payers. brand as do is so and able demonstrated well physicians satisfaction perform a from it the reason has continues

IP continue regard into know certainly the XXXX. the to raise We're we have to profile. So with to we bar clinical going

the market differentiate the grow utility expand But as stay plecanatide's of to this market the I to dosage plan to can, additional of we clinical the really and what to formulation, continue to with regard got And both we what cycle fast far linaclotide, we as As we comment life to the really as have symptoms can't management have already brand to that's the course the IP on. focused do the on. overall I we've which product. leader think stay continue started with strength and as

Ram Selvaraju

Thank you very much.

Operator

from Berenberg question line Go next of Capital. Patrick ahead, please. the Trucchio with Your comes

Your line open. is

Mark Mallon

Patrick. Hi,

Patrick Trucchio

morning. Good Hi.

on MD-XXXX just and a LINZESS. on follow-up a question So follow-up

Just first LINZESS. on

tell quarter commercial collaboration. margin driving… what Can you the us on the increased to is this XX% So

Mark Mallon

we Patrick, lost you. Are you still there?

Patrick Trucchio

Yes. I'm still.

Mark Mallon

Yes.

what's So commercial that you margin you're the driving up, Because brand broke margin. in the the about Is asking at end. -- improvement correct?

Patrick Trucchio

Yeah.

Sorry.

what's should commercial what if driving in wondering, And expect quarter fourth long-term. in XX% for the XXXX? drive that the this increased a and could just improvement. LINZESS So I'm over there's improvement And quarter. to then, peak we further margin, the margin

Mark Mallon

ahead. go Yeah. Tom,

Tom McCourt

several is revenues I steady, Yeah. what which over I the last mean, what's margin. seen, is, years think, the while really has to been driving overall continue we've the level pretty of investment grow,

a The in And see I brand. extremely is this to being market. continuing. brand going we're to that well. still doing the as brand. invest is mean That continue a we this said, huge see We growth

I invest think to in to going we're continue the brand.

some growth opportunities to we a to And opportunities still we to that we're say taking is we got IP accelerate to think -- I driving about if have long we see look go that do which a knowing at demand. this way XXXX. already see

And will believe with growth we to profitability brand. that, see in I and growth the margin, we think, continue the of healthy

Patrick Trucchio

evaluate studies? additional you -- Can moving should this we you studies So indications this in So those for immediately indications? potential additional Phase also the Or indications? so II Phase into would move you fast is the program at be as to compound additional able III those discuss anticipate wondering, IBS-D. I'm

Mark Mallon

Mike?

Mike Shetzline

It's good Yeah. question. a

II II we therapy. itself The alluding in fairly Phase with terms So study, as in is duration Phase And the again II a of the by IBS-D. to robust. IBS-D. and of starting you're we're study have Phase size

as III parallel additional we able to indications. question directly, that considerations can have for But program. go quick expect do be we we in address So active in to to to Phase your as

We broad Phase explored dose range a have being II IBS-D. in and

that that for indications So to other closely, we're look applicability the of pursuing. need at finding and dose we'll the

do proposed we repeat will out clearly that that. to that with currently other require to indications not make we At don't FDA further. to -- anticipate But discussions move need necessarily And But this work with have development the our think clarity we secondary programs. in stage, to that to to forward have II. get on Phase some of order

Mark Mallon

Allergan Pending disorders. IBS to currently working program, possibly as we're GI in closely that forms with would Phase current chronic proof-of-concept utility, studies. pain well And a II positive other as other outcome, clinical broaden the with the of other identify

as, or multiple diseases more -- bowel organic GI and this related Non-opioid as, application have as excuse diseases, a really inflammatory across such chronic to that analgesics -- broad organic conditions. intestinal disease that inflammatory if establish Such disease, to drug pain could Diverticular bowel

Operator

like And our time. there over this turn are I'd no the back at further to questions to call presenters.

Mark Mallon

to great want everybody for time and thank And results So, interest still I Ironwood. very And do be And entire for to the in in everyone. work they continued I doing our ahead have achieved to Thanks, patients course, value shareholders. unlock that. team QX. on their recognize for here again. the just to of we'll plenty company to We and focused want of

Operator

today's thank concludes do for We This conference. participation. you your

disconnect. now may You

Ironwood Pharmaceuticals (IRWD) 31 Oct 192019 Q3 Earnings call transcript