IRWD - Earnings call transcript Q1 2021 | Ironwood Pharmaceuticals, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Ironwood Pharmaceuticals First Quarter 2021 Investor Update Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Meredith Kaya, Vice President of Finance and Investor Relations. Please go ahead.

Meredith Kaya

for for thanks XXXX first and update. investor morning, joining our us quarter Good

superior crossed this materially. accompanying the be release actual risks press Our Also wire may that our be speak a and included as of for at the financial our measures. statements. statements a on future cause Today's and measures. measures, forward-looking reconciliations uncertainties for this under considered of these found or to morning Form the statements on supplement end obligation presentation, website. call most the and discussion include to the to to and and forward-looking our statement differ slide refer applicable, tables harbor we of slides filings. SEC comparable statements results of undertake only Such involve A current on can directly the extent the statements. safe to in these to year as the and of are GAAP which GAAP for in Factors well XX-K All measures risk the non-GAAP as ended release should on annual date XXXX, Risk please no such factors report press is available XX, update substitute heading To and as December our

program new We'll Then also XXXX repurchase portion the be webcast. CEO, slides Shetzline, our LINZESS. strategic review review guidance. CMO, first of our be share and summarize will Mike via to Q&A priorities, performance will quarter call, will announcement the today's interim and for results referring our our CFO, today's regarding the McCourt, Consylman, During call. our financial President available Tom our our Gina highlight for and commercial

the of I'll With For over section those website please the the access slide. turn dialing Tom. Events our that, to webcast go to call you in, of to

Thomas McCourt

quarter to start today. from joining morning, its solid had strong LINZESS performance, positive of by profitability and continuing We thanks cash a XXXX, and Good everyone, And as for delivering Meredith. momentum another us demonstrated Thanks, XXXX. flow.

mission growing in driving our by a medicines steadfast and value patients successful building shareholders focused to business. are bringing on We goals and importantly, important and to of our our remain

strategy forward. LINZESS. demonstrate the growth XX% and demand U.S. first LINZESS Our believe maximizing for or with growth million net we starts in to resulting of double-digit opportunity continued growth there's quarter, moving $XXX in continued substantial sales in year-over-year,

And of both development the we're internal Second, for seeking portfolio assets build conditions GI own and increase we're cash that through in in million assets on finally, profits quarter flow. $XX bringing first IW-XXXX We innovative potential sustainable an visceral nearly sheet, treatment of XXXX. through the with serious, as an and pain our to of ended $XXX focused generating fourth our the on such balance organic diseases. million cash target the versus cash external in quarter

also with to our return to just that to believe morning can common a position we has shareholders. our repurchase Ironwood approach outstanding and the stock we and it our is where deploying which may share the aligned up million thoughtful of strength the and allocation we XXXX. be our to The financial capital share with this in strategically shares of repurchase greatest our maintain $XXX cash to to us announced a commitment provides drive underscores value committed December financial We disciplined program capital shareholders. to priorities, under through simultaneously date purchase strong Our position. are that as a in and invest to in thoughtfully highlighted, performance and authorized program strategic ability We position Board

to demand approximately commercial with in to Now grew constipation, for its category. strengthen first with as Prescription and in position U.S. market well IBS-C the in prescription the LINZESS quarter. adults performed continuing treatment remarkably the the XX% #X chronic share the with LINZESS performance. turn XX% let's year-over-year,

execution New-to-brand quarter, all-time high patients prescriptions care choose LINZESS, prescriptions that's health that even chronic broad and continue securing of drive increased growth XX% also positive is experience that significant access. LINZESS that for that year-over-year, net an to the and physicians in quarter the we've a further to made awareness strong This come constipation the physicians, represent In growth. is date XX-day our This in in the the of through LINZESS to U.S. reflection practitioners $X continue reinforcing opportunities believe this IBS-C strategy the significantly total number of of achieved a reaffirms success LINZESS. outpacing LINZESS core prescriptions. The and request of the consistent of XX-day commercial had of patients care to market. up has potential and sales increasing amongst X XX% motivating several performance LINZESS grounded in first and payer additional seek nearly part in U.S. exceed We prescriptions has business. strategy. billion success the appropriate strong to with confidence the to LINZESS. fundamentals: the with LINZESS first And have

LINZESS existing addition, class for remains the both leader in In important and new access, patients. formulary supporting

strategies. IBS-C of consumer to demonstrate responsiveness. We strong the brand consumer that fully further symptom This also the mix incorporates support evolved marketing which includes believe overall early April, campaign refreshed media abdominal year, our we've launched now data. Since beginning the a the promotional to that continues the in

meetings level on new achieving expect our a of been pre-COVID impact campaign and have to with access and skilled the have this We physicians, a levels. experienced salesforce Also, meaningful brand. comparable in-person to patients gaining high

first also to a the IBS-C in XXX,XXX visitors with year-over-year. seeking a experienced clicks we of quarter, been represents suggesting in has XX% their increase website, and constipation-related higher traffic month. the the constipation-related about significant unique a and to are increase LINZESS options terms. In number are for seeing symptoms. linzess.com increase visitors online more significant This searches And that patients there for we Additionally, treatment

increase that of suggests and significant also the constipations prevalence IBS-C a U.S. data in adults survey been in chronic overall in there's recent Finally,

We're DDW New data patients of overall the of for relief on a and presented to weeks. symptoms data developed the posters illustrate and particularly where Ironwood the appropriate be X be of in AbbVie of potential few at meeting, associated named the distinction. will been will for LINZESS abdominal growth with the on scientific partnership with These DDW prevalence burden upcoming looking been IBS-C. illness in have presenting and of forward posters, X X X have which AbbVie,

and highlighted, exploring initiatives life linaclotide. will help physician continued in clinical drivers to as for for present utility opportunity advance the to commitment cycle I In telemedicine addition moving may expand we efforts serve investments care to our an in to continue believe management growth both these believe access GI demand patients key need forward. our catalysts that We to the for

Gina. Just over a few turn I final to it comments before

forward, a treatment GI limited area often of therapeutic with remains and option. and unmet symptomatic As diseases highly recognize we that or that with a need look significant millions no have we suffering patients

our patients, shared in over thank have this with I'd underserved the the in and our strong expertise for GI to Gina. a experienced market. their and dedication With I'll to like advocates brands. and the a We to knowledge moment call team that, supporting science efforts take caregivers, of advance build to advancing employees, all and community to innovative successful turn

Gina Consylman

to I report great morning, in Thanks, be today. a position performance. provide financial good a to few everyone. wonderful to such Tom, It's have and updates

few First, through thoughts. and Ironwood XXXX, primarily our I'll I'll Please strategy $XX quarter press release our review financial up were by for performance year-over-year, million, QX, collaboration allocation financial finally, information. detailed our of for XX% revenues closing LINZESS revenues the walk of In capital guidance. $XX I'll U.S. first a provide touch the our to And then refer XXXX on million. driven

increased Our to revenues U.S. the of first core XX% quarter business, LINZESS collaboration compared XXXX.

LINZESS. to Moving

Net to Tom As sales and partially robust XX% sales demand compared grew quarter U.S. first erosion. growth inventory driven prescription price net favorable fluctuations. the by offset by XXXX. was mentioned, net channel of

price the to regarding fewer we We year management. tighter digit And the net of fluctuations year. the due expect full for continue the erosion inventory remainder for channel, to anticipate channel mid-single

track on achieve to guidance to year-over-year X% in our XXXX. sales U.S. net X% growth are We LINZESS of

it year, to demand, moving the monitor growth we first exceeded quarter, early While still these inventory forward. rates we continue in will is and price and the in

to the was brand in quarter XX%. Commercial profitability. first Turning margin LINZESS

We disciplined and continue sales to behind seek investment net LINZESS to over brand. time expand through growing the margins

Now income million to net $XX was EBITDA Ironwood's profitability. GAAP $XX and was quarter. million, in first adjusted the

review our let's guidance. Now XXXX

as to million $XXX to sales in for I million mentioned $XXX than of to LINZESS to of the greater growth Ironwood million and expect continue XXXX, revenue adjusted earlier, we total EBITDA to $XXX addition In continuing year. expect net

is $XXX ended and of quarter, first million unique the profitable cash capital up flow fourth million XXXX. a from a and be priorities. where way in we in years a quarter cash $XX Being a Moving operations from $XXX fortunate meaningful the just and company, flow to the and in were allocation and million position few quarter cash investments, from we long biotech ago. to delivering in cash generated with In

to capital our to simultaneously CFO our we return cash position believe thrilled our We strong in also deploying drive strategy that can ability has us are financial strategically as to the invest this for given am I committed we shareholders. the and where GI value greatest thoughtfully shareholders.

deliver Ironwood can buy to a up, do to authorized build through wrap stock to and back pipeline and our an to is flow. not year. maximize December common To clear, profits which innovative highlighted, had a it we million constrain share has priorities, up and be in cash solid GI Board this expect $XXX start our Tom LINZESS, To with of efforts the we aligned strategic our As program program we XXXX. repurchase

we reflective believe innovative to space. investments, are Our of GI assets a our strong position in results develop the great and in are we

Looking X advancing focused ahead, are strategic we on priorities. our

Thanks open may for foundation, about and We this excited to are and deliver we opportunities again of up patients line built lives GI strong the us improve you questions. value. a us joining have of morning. shareholder the now ahead Operator, for the

Operator

[Operator Instructions].

Jacob question is first Wells Fargo. Our from Hughes with

Jacob Hughes

do LINZESS, quarter at you for if I I you the I out the quarter, Or on Rx color called some the both Gina, additional year results imply full demand is does Could year? but through this provide -- does look a just And rolling just just know through or you pricing? that, think first deceleration realistic? growth. side it's this conservative? and XX% mean, the the guidance first

Gina Consylman

We it's at great at. question, and year. performance certainly quarter and one then look certainly, your our took a hard is we guidance asked a the we ourselves the It's that expectations for look always question look And when take at well. a the as for

demand thrilled where are. year-over-year, XX% growth one, just with especially we we're So

I But I back point, go which, couple and growth. post-launch of this fantastic I think at the it's see the to eighth guess, X things, I mentioned year to just in a script. the of

management So talked the And just the year. I early, for quarter year. inventory It's right? expectations about first tighter one, this it's for full two,

significant what and see some mean? you we years, changes we're compare that part So means part does you in would then year, the second in burn see that We year. the typically a kind year. if of think the of to see and inventory. would seasonal some what about this That build prior if the in would burn the expecting first of we actually And

higher growth a burn we early to the year, stable full less are of more for inventory in So expect where instance, sales if part the LINZESS balance QX, so the contributes year-over-year. for year, net in we

lower So think sales build the that about prior growth where year-over-year. then you year, right? the the and the will higher And rates first have year, to part rates, LINZESS you we'll less of second compared the to of growth part net contribute have year,

which pleased think pricing about single-digit obviously, the in mid continue price for which combination really that then is we're we with, guide the dynamic to to, year. guidance with erosion that and So around demand, the

Jacob Hughes

it. on additional just maybe on Got then pipeline some XXXX. Okay. buyback And how the provide in beyond just you're color the about thinking

in could in year? some light bringing of debt additional the next -- and color the the about is you buyback those some upcoming convertible timing on assets and the of in talked stage provide assets You

Gina Consylman

able recall, But a be this. Tom, I'll the okay, and buyback, it's more I that I for of really and shareholders. the the that's we what to Maybe back place. quarter. with they when Sure. Mike received of years, are part We all about of debt, now, start, to you probably the close thrilled great able $XXX on periodically the same looking I to time. was cash be we we're a didn't want If have can jump assets. low million to if turn roughly one, in post-spin financial we think that And the specifics it due of questions to if at started would I'm point if over couple just in until think million and of debt. $XXX last for I to to announce Up return that on our

And X have over so the in cash years just fast forward post-separation, now, $XXX it's we million balance sheet. on

$XXX a And proxy greater the right, We've nice million cash off been We XX%, well. remain pay off that and expectations of We spaced also paying the between cash. cash XX%. said that this which have are and committed guiding possibly year, for generation. is than convert debt to we to for has nicely XX% XX% in XX% XX% in to as EBITDA

to I buyback position have stock And not buyback. impact of all about continue if I think think to great the we're or our to $XXX in just So invest in our a it strategy. cash does ability this think million you that,

LINZESS, So profitability. our and is strategy our maximizing pipeline out building growing

have LINZESS. We behind investment full

we You I that can year. we look assets, very to for And we're see at fund in. at rather as in asset But And remain the later, we're about than in these time in, by the see the continuing asset that can sooner you confident think acquisitions that guiding think looking would to really in bringing asset to bring the for the we're this I we're these in and assets, assets year, of brought think something pipeline, to all the just still And excited to if and year. the numbers bring the bring love profitable. and the we're pace I right?

Operator

with from is Joseph question JPMorgan. next Your Eric

Hannah Adeoye

is Eric. This for on Hannah

a Just us. few from

become in marketing that Alnylam. revenue follow-up So on then your a first, partnership trading BD that. Ironwood? How exposure with much community in think to factor you're the you developing could And a And of prioritization numbers? that do GIVLAARI, disease does for asset in have that generator your or asset I to hepatic

Thomas McCourt

this us. the to contribute Maybe strategic be think, a our -- to a particularly can in Obviously, we move was as GI I'll among I this a One, Maybe, is in real that customers to sound Yes. Tom. able question. marketplace, take really, we've now pretty for to is we've And we're Alnylam well objective our additional What's patients, as successfully right that hepatology. patients working done. Alnylam primary identify early working of happening was pipeline on now on to which with a to sizable with identified get drugs. innovation

have So that are AHP, have been for a test and patients them these diagnosed, moving positive are we're highly symptomatic, through.

So we've speculate. have they the of exceeded we little big patients a us. with for our to that that put number challenging still relatively is the early expectation but found have of I that it's certainly mean, on Overall, to that be on, how patients drug opportunity number going

that means through it then I hepatologists be that how other many this by have because with majority you to the disease actually common the really limited of patient it's through and as additional is which we patients piece the better can year from sales we'll disease, gastroenterologists number be of to And pull think due us area hepatology, call may identified. number identified different an are there. as rare point of of again, far the I we've if as clearly a patients understanding to adjacency as the know, interest be the sight more of out may succeed that is of of suffering an think our end a the it takes mean, a we line the GI towards because, we're is hepatic related space, in managed interested. deploying of I disease the And what of area obviously force. far that And

So in been lot an delighted and of with Alnylam I has we we've think I patients very awful overall, disease. terrific the made. helping we're debilitating think very, a progress really were a partner,

Hannah Adeoye

you an IND guiding within Great. that of IW-XXXX, mentioned That's the And XXXX. you are first had for towards helpful. half filing

on that submitted, thinking remaining potential interest? in do-list? to I you're items the in And of you of of able share items of getting are what also, Phase then what are trial design and gating So terms to endpoints the terms

Thomas McCourt

broke little Yes. a you I apologize, up bit.

to I just make So I want sure it. understood

Mike come do asset our back talk we more Mike? might is I'll And we that of as the ask the asset. what viewing next the then a we're think where is kind as bit IND of design. can Chief we I'll well about step Shetzline, how the So of about Officer, trial kind Medical and and what how to monetizing share are kind with in progress on

Michael Shetzline

remain in it's we is in inflammation the hopefully, program. think which data to based able for bladder. Thanks, know, or and question. that IND into track that pursuing organs Tom. or we're the may we the even the other that the interstitial be pelvic And indication, And that support from We It's XXXX. half actually actually gut -- you actually submission syndrome. organs for the clinical on key cystitis pain actually get acts a how recognize abdominal that is of as a for the And we're good can of on crosstalk And diseases different to going with GI second that mechanistically to colon. IW-XXXX clinical is hypothesis, underlying not to that need you how of know understand that point there as think like when IW-XXXX though works to to we sensitivity demonstrate, that's cause bladder you

to opportunity help So as at the bladder to syndrome. syndromes look pain we pain real really targeting like colon a IW-XXXX

the clinical soon in on So end half second the starting IND program of track at thereafter. for XXXX again, -- or we're a

Thomas McCourt

as the far POC. as Mike, And

look that would like? what So

Michael Shetzline

reminder. for the Thanks Thanks. Yes.

the obviously, is, we're in to pain but So trying proof-of-concept bladder rapidly syndrome and And to proof-of-concept the will study a really first, safety tolerability we'll design be move POC, data get study. patients.

So we're going work of relevance endpoint authorities external program. to year in the get we as bladder design, present clinical endpoints. well going later at sometime the look those a can And start granular we're experts to the patients. pain to We with to an to syndrome that have on obviously, health

Thomas McCourt

Yes.

how drug. about as know drug far the team owned itself, I as the we we know We the it. Certainly, thinks know safe. it's manufacture think can a the We asset. acts. obviously, as know wholly is asset We this, it

We to and can at And develop investment, do we the the preclinical decision And but to we get can we have or that proof-of-concept we action. valuable whether obviously, out-license at make the regard ourselves point, it crosstalk is this very data least with modest site a the confidence make where and most certainly asset, we a with to want positive as deliver opportunity. the asset, at that of a we spoke been certainly, we can with. has Mike of go to very, mechanism with this a

Operator

[Operator Instructions].

from is Lebowitz question next Stanley. Morgan Your David with

David Lebowitz

year? will quite we to as quite progresses. as fourth first different. know continue Sorry, was Because that year, goes. to mute. My Clearly, can quarter the expect first the good Fourth the is versus expect trend year quarter. cadence go as to last for sales the to that down it as the quarter. that it be the the quite I cadence quarter strong. were was a year Will on is How last last volume tends year I growth sharp get substantially we was know typically quarter it quarter the on the question quarter. in I was that pretty stronger

look it how So expect at this should year? to we

Thomas McCourt

There's whack we're a due year. and where really is January April difference in at there seasonality down I'll -- May, no And question. think, the clear starts has over in dip deductible it's the the here. see has pandemic, this to it. a one, Maybe traditionally March accelerating. slows Tom. the And is accelerates usually, really the What I then seeing, been and this point, remarkable. a your high in end the summer and David, made a it back take and to plans, of we certainly, It drug February,

certainly, business I think question year strong I visitors we're we I strong fourth we're seeing But saw we very website, a source traffic is to up tremendous a is from a quarter. extraordinarily you our XXX,XXX the ago. a first the also -- an on mentioned, but unique of Internet, seeing amount that as why? coming we where from? where saw of like mentioned XX% And And month. mentioned, And in quarter. That's as were

of and Cedars-Sinai addition, the increase large them survey to with with there's GI prevalence connect clear replicated University collaborated ago X the we a a a In rather and years did survey, Michigan the of we which disease. in

buoyancy overall of an the looks particularly clearly it demand, new Gina So looking forward. with seeing. certainly as inflection We've as excited looks this we're to we're we're what mentioned, point prevalence encouraging. like seen optimistic we're But of But cautiously in brand.

Gina Consylman

build earlier, I comments is Yes. of time, in have combination build. in just the we're the higher I in year could this first we sales that -- level to the the movement We right? at we won't my the at -- due quickly David, mind, and least and demand, same of price burn net the year of mentioned to not and a anticipating, where part net if same inventory to just part fourth the see the obviously, typically some same of second seen in add, right, keep won't quarter sales inventory contribute

Operator

this I to call We the further questions no remarks. presenters time. have closing for back at turn would

Thomas McCourt

by, Well, you to thanking want joining close it's of been all today. for quarter. us certainly, terrific just And a first I

we the behalf strategy core on X on our that We've outlined well executed speak promise we've management that ago. I stayed of I to think shareholders. -- to years true team know I the

following a And regard looking but Gina up to shared we're doing. optimistic we're I to are will quarter we we'll end year what extremely kind earlier, think of with of with I line you what to what have we're see the the forward think with and and next As better we're much look seeing I of you sight like. think of where at

your for time. thanks So

Operator

This today's conference call. concludes

disconnect. You may now

Ironwood Pharmaceuticals (IRWD) 9 May 212021 Q1 Earnings call transcript