IRWD - Earnings call transcript Q2 2021 | Ironwood Pharmaceuticals, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Ironwood Pharmaceuticals 2Q 2021 Investor Update Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now today, hand Investor Matt would to conference Relations. I speaker your Roache, Instructions] like the to over [Operator Director of Please go ahead.

Matt Roache

for Good for investor Wendy. and our us update. you, XXXX second Thank quarter morning, joining thanks

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

of year. then updated results second Rickard, Chief our the provide CEO available will guidance financial a commercial our of also Medical will Officer priorities brief Shetzline, Jason provide be overview and for for today's our performance review During strategic will quarter Tom the Chief review McCourt, portion Q&A call. and and Mike the Operating Officer our our call LINZESS.

slides referring via webcast. be will to We the

With our those the website to go of now turn the of call section over the to slides. to that, please For I in access Tom. Events you will dialing

Tom McCourt

us Good today. double-digit Matt. Thanks joining impressive very a LINZESS for quarter by growth. had second We demand prescription thanks morning, everyone and driven

strong cover As are detail XXXX, will more highly financial commercial the later performance, a the our year guidance the we Working against which on of of the Ironwood for our in strategy Jason fiscal talented everyone's to continue continue alongside, result raising company's team patients execute we to XXXX our Pipeline in sustained delivering building shareholders. flows. and profits LINZESS, for cash maximizing positive we and of and value redefine innovative -- standard-of-care work drive to strive to far and GI I'm very continue our generating as thus call. proud

share me priorities. overview let strategic of Now our brief a

number the US and that XX% First, chronic for prescribed the the we Reinforcing net prescription US second this proud one million. position are demand LINZESS constipation. as sales adults in in brand delivered treatment the growth and of $XXX IBS-C of quarter year-over-year with

We health year, pleased growing increased for are their LINZESS are care brand record last a second practitioners choosing a patients. versus prescription high number that also to XX% that demonstrating of quarter LINZESS report growth

portfolio. GI our building on efforts our advance to continue we Second,

remain treatment focused We our our with million an by $XXX submit we that disciplined balance the potential conditions. predefined a faster we further consider. applying priorities IW-XXXX, strategic success are the our by assets for strong the and We us had bottom believe may criteria generation. exploring On drive quarter this on for asset serve. and a of another to GI and end program pain the great the to early beyond. on And We of wholly-owned the execute cash any of delivered providing will XXXX. in year and sheet, to on the visceral track year line patients equivalents growth to with potential deals provide can expect cash of high significant the remainder a clinical we benefit We the IND set to maintaining this approach for bar innovative and third, flow in approach LINZESS cash setting begin quarter and ended financial second on flexibility of

We take capital GI to to approach innovative a effort aim allocation shareholders maximize in continue an to disciplined therapies return thoughtful to and our bring we as patients. to to

in mention mission was our comprehensive retained GI interim, forward. of appointed CFO. faithfully We're few be Chief by appreciative to Directors we a identify we on that Board look honored to this to President while previously focus the conduct Turning search been Gina corporate care community quarter. the designated Rickard, role I Jason Principal and next impressed the by Officer, standard move of which former talent joining we and Vice by consistently building Consylman redefine Senior I our successes Jason Officer forward was to Executive the priorities for our want on additional the and updates, company CFO. Operating Financial Officer our a to XXXX, also on Chief process I've our held Since this in organization's was to taking our as I strategic serve. of

addition, have role. In as Officer; new Controller the out Officer. join thrilled Ron John Legal was and to take Ron team his Principal our and Ironwood Minardo, designated Chief John recently have Corporate Silver Accounting We're joined

LINZESS. let's performed commercial performance Now well LINZESS to second focus of our the in quarter. move exceptionally the

high I growth an mentioned the continues XX% with market brand. high. all-time and category quarter second prescription growth from increased second at moments XXXX, this for the few year-over-year. also total to is XX% market an prescription the of grew the As of brand a XX% be share end which demand LINZESS within quarter, leader all-time LINZESS ago, the

increase driven XX% new the few second same in quarter We of performance ago. a believe the in factors. versus saw a year is we addition, half a period In first prescribers by the key year our

have execution with of result LINZESS. commercial our and patients experience strong growth experiencing the to of and First, we be are the the positive continues US in strategy had physicians the that

from benefited and reimbursement. payer broad also access We

we data. sales IBS-C nearing symptom care pre-COVID Also we our marketing which quarter our to the benefited in-person health from Second, believe sales abdominal campaign, levels. now and incorporates including practitioners are returning overall our consumer efforts significantly and refreshed throughout the calls

Third, constipate-related clicks patients also treatment seeking to for IBS-C terms. And increase see continue constipation. their to and chronic we are more searches higher for LINZESS we're online suggesting year-over-year traffic seeing in the website options and

meeting market showing IBS an prevalence which including encouraging the Finally, in May. presented we IBS-C. to be were attributed part II, DDW GI prevalence at to from continue in see of increased growth, IBS-C increase adult disease Survey Data signs may National in the

to in net US the in billion near we're on term. track exceed sales ahead, $X Looking

of IBS-C. and the abdominal Our quarter, patients LINZESS this and was life-cycle line to which adult published quarter top June pain a for prescribing the Gastroenterology with approval and results a compared FDA bloating, bloating, XXX last reinforce an administered the the adult NDA-based XXXX, meaningful clinically approximately trial, multiple results symptoms overall in abdominal linaclotide on was Journal LINZESS of clinical mcg September symptoms mcg IBS-C management performance associated change year, has the daily statistically IBS-C our information in following of long-term once American coupled, with surveyed to on the strong shown XX% patients. The placebo. updated LINZESS having the comprises of orally in experiencing evaluating demonstrated for and/or XXX in potential overall discomfort. the of impact score, IBS-C pain brand. abdominal improvement from with trial, US reflect Phase report significant reported clinical with adult and We trial supplemental In this date patients, Research US to results discomfort abdominal growth symptoms the full to of additional IIIb in the in adults second bowels opportunities

may our US. majority the a a that the they an in symptoms provide symptoms million suggests estimated that or more, abdominal IBS-C, overall week With meaningful associated these XX.X with of once reporting, data impacts adults condition improvement LINZESS experience

other settlement for an version license XX it's into Ironwood with on XXXX in IP. LINZESS subject XX, the Teva generic exception. to and March three along AbbVie all preserve Pharmaceuticals, generic coverage to known settlement for approval the to-date of market LINZESS, settled along certain our US update entered LINZESS with a beginning majority of the Moving all Teva have limited dose to seeking With filers this ANDAs customary of of the to and versions providing a with mcg patent we agreement agreement, strengths. approval FDA the

for and innovative can no be around need Americans look treatment one severe the GI These population. limited five large highly unmet have option, often symptomatic diseases and with understand diseases remain patient debilitating and treatments. need in ahead, As and a or urgency new we we that creating affect a

We're our strong GI pursuing on innovative more unmet Our continues diseases to committed specialized experienced a and in in focus strong and rationale. with the market. to need and underserved significant team opportunities performance. turn value-creating to to in would and financial of to now leverage I'll employees, call thank now for in assets and experience GI this GI generating to future. capability our Jason I advocates our the like caregivers shared patients, their all Jason? dedication the over community review scientific

Jason Rickard

be three to is discuss It second results. updates have quarter the our morning to strong Tom. on Thanks, provide. this call pleasure to main I

XX%versus In financial to review financial US strategy. through also, And guidance XX% the of up capital primarily quarter XXXX. updated our second second Please information. quarter which allocation financial $XXX the for $XXX refer performance. for by were million, up year-over-year I'll detailed press collaboration our release revenues quarter revenues XXXX, driven our Ironwood were I'll walk Then, of year. First, discuss I'll LINZESS our finally, million second the our of

and XX% net driven move offset prescription by compared aversion. XXXX, Let's grew favorable price sales partially robust of second inventory US by the channel demand to quarter growth net fluctuations,

year, net we the mid-single-digit expect of For price prescription the healthy erosion. continue demand we anticipate balance to and

when net the channel resulting in half fewer dampening XXXX, compared sales second of the for expect also growth half We the a the of fluctuations year. of prior first versus to year

a the in-person the did primarily an but details quarter in of due I'd many last brand second not of quarter to as the versus in of the year lower in LINZESS the that, Turning XX% was second selling like point to XXXX, XXXX. result execute to margins margin quarter we the was restrictions. expense out in second versus COVID-XX increase XX% versus Commercial commercial profitability. second quarter of XXXX

recall, details were of may selling of last adjusted year. you fourth call two first As the and quarter related in to the expenses overhead our during quarters XXXX virtual

benefit to item and QX, of our operating by such the release information release. loss our non-cash, $XXX tax for tax release the our allowance refer carryforwards non-GAAP tax business deferred a like The future non-recurring valuation note accounting I'd to million valuation of event including and a be an net as that, an against assets, to recognition $XXX our on, an in one-time results. moving through Please update of to the It's important incurred more is expected in that to effect to a million second is quarterly Before XXXX losses taxes. the deferred majority our net income. quarter's used of on allowance provide from reflected valuation in resulted offset non-current adjustment filing about an cash in reflected this allowance income is

Ironwood's we $XXX $XX that the million, up tax delivered the just valuation million, with EBITDA Adjusted the the income of million $XX quarter. which GAAP net million to per-year Now allowance $XXX release versus was benefit profitability, of mentioned. includes I associated income non-recurring

disciplined second and approach million of end quarter, quarter million to ended cash the cash generated capital the in million In equivalents, at $XXX cash to the and in with operations and up cash We $XXX allocation XXXX. from Moving and we from priorities. a thoughtful flow allocation. capital maintain $XX

our stock in common you shares As the share under, through XXXX. outstanding $XXX Board the program up second to may of company million December repurchase a repurchase know it's quarter, which authorized of

Although, remain greatest believe in for the repurchase any value quarter, not continue in deploying of we drive we capital we second committed strategic shareholders. our did priorities can support where to to the shares we our

let's updated guidance. XXXX Now, review our

in $XXX $XXX business Tom. strong the previous to the in million. over $XXX now of greater GI our to which We demand up $XXX our call growth and expect which opportunities of million X% our additional $XXX continued raising balance highlighted $XXX positions sheet, financial turn from capital than Tom from guidance. US to million, than the EBITDA to to to which we purchase and now X%, and pursue sales growth to LINZESS of X%. earlier, million, prescription from believe Ironwood LINZESS adjusted disciplined our to performance, invest million XXXX X% strong is us up of revenue as greater net of and a space. back is well We of range allocation guidance continue financial As US I'll Total million, is result are up

Tom McCourt

I'm extremely as to this to the continuing a team's Jason. quarter the looking the forward upcoming GI Conference speaking We the open up to Thanks, you leading in Stanley for performance also our in Conference the proud vision you dedication within Fargo month the continued then. of the Ironwood Healthcare our later and of months We're of well look healthcare neurogastroenterology Wells in meeting Healthcare be well meeting American line College to attending forward would momentum as may September questions. Morgan of and becoming team all Operator, Gastroenterology our as this now Global company. October. as

Operator

the Joseph line Eric is [Operator of from Instructions] first JPMorgan. Your with question

Hannah Adeoye

on is Eric. Thanks This for for question. taking the morning. Hannah Good

Just a couple from us.

pace over revenue XXXX. $X reach in in LINZESS billion So on with now to

now Just growth? what do much thinking sales do product of headroom how to the see see you respect and about potential the you market with share peak as currently

Tom McCourt

Yes.

think And is accelerating. growth we're it's with thank how the you. I remarkably -- impressed --

it seen there's of out looks very inflection about patients. point suffering, outlook than brand. of been XX% there's the those treated As promising. you we if patients I you've less the million And there mean, still clear XX a think

room So there's of grow. a lot to

of as in The for is this think give we're their tremendous web to marketplace. other raising also the thing of boosting well in that believe and care as I looking all seeing is which patients leveraging the we're telemedicine what increase activity help hand activity

encouraged are and very kind we're think we're where I where of So of we going.

we brand think to lot significantly that do the And see over in continue of now a becomes the certainly to no the pulling continue in program, I now. growing brand drugs $X as how billion life is to it through the we which management sales. push pediatric very community there's programs approved well cycle as large really as underserved right of a growth large some such where invest

So as think but were yet, than we we're those now a long-term, year we're -- ago. right numbers far I encouraged as think provided haven't far more we I

Hannah Adeoye

Great.

about thinking for BD. so timings And just a little

buyback $XXX share through So announced you last the quarter million XXXX.

the Maybe ahead years So do selecting at like? assume be time surplus primary can we that the yes what have during looking for potentially do new see for focus line looking pipeline mind this And timeframe? will you you candidates? -- this what cash few pipeline in just

Jason Rickard

Thanks, fortunate I allocation for outlined. the And growth to in in a I'll the Great. be invest brand mentioned able believe to it Hannah a that We script strategy. continue bit behind question. capital test to the position reference we're Tom our building

in then development, that's to way find speculate those and it can't create a we the to also team priorities opportunity that. any we lot bar, about And to don't grow of sustain make believe period. of timing as we to And you organic against assess the maintain right desire GI the generate value to that be GI program those able we contrary When there. for attract going can attractive. assets GI have execute a I portfolio the there's the innovative in comes continue over the capital each see space out we'll possibly to them buyback As assess we them we but And continue assets and and and shareholders. that's share cash to and of something the know, we innovation for we of a announcement that profitability. of to we've how to and opportunities allocate disease high the with see got case those product to on in judgments believe

you form. take own their know deals As

be So corporate updating go front. we the on we'll development as

Hannah Adeoye

the helpful. That’s questions. Thanks Great. for taking

Jason Rickard

Maybe next question?

Operator

I I am sorry. was on mute.

question of from Tim the [ph]. next is line Chiang Your

Unidentified Analyst

Hi, Tom

Tom McCourt

Hi, Tim.

Unidentified Analyst

around than investment jumped for Good quarter sales look X% if X% apologize sales US I already terms And growth. you on been by already this that's guidance, I a talk And growth way. been AbbVie lower But apologize you've that sort just, asked. so at to bit? if late what updated I about reporting materially question's your I that. in the sort has this explained of year. of little still of, Could

Tom McCourt

with update we're on the aligned quarterly. plan and quarterly very think We much work I end Tim set targets a long-range side. side We've the AbbVie. and Well, basis by year

we sales pretty -- we're So growth back should up mentioned far increase. probably raised is check they go what But net as Jason provided as and we to X% put our as X%, guidance out. X% which previously a to healthy the X% to and had

should certainly all we So be but the we're growth consistent. pretty pleased seeing, we're with

up heads sure the AbbVie the same language. to over make certainly II talking Phase we'll we're So reach to

Unidentified Analyst

fact Well, right? Tom, XX% I to net the I'm the growth that year-over-year reported what that referring in quarter US second just think sales AbbVie

Tom McCourt

ahead. Go true. That's

Jason Rickard

Just that X% to in reference guiding half lower the And the to the to period. in net XX% over growth clarify script we're year-to-date year it's second price versus X% full inventory year-on-year. dampening related the of my to comments

Tom McCourt

basically then boost quarter as the due first is we to it was the inventory think being in So seasonal and the inventory will accelerate predict where where is what we And where a which more it saw of they know burn out they've year right. the we you doing the to back absolutely makes managed the saw year. keeping But this you're a of -- the in half in easier been net levels would how kind best end land. them at inventory sales predictable of past

by growth net a mid-single of which the boost well the price that digits. XX% the in the the as erosion Jason was in offset as For but quarter it demand mentioned XX%, was combination as inventory partially was

Unidentified Analyst

you around demand do growth? this see XX%? see I sustainable, the how at mean, do you And

Tom McCourt

about of couple it's the as XX% we do we as mean demand were growth And of four a to we -- north brands I continues where looking this that Yeah. to know, linear growth XX% been seen this seeing. see row, really I in year than like as, believe. years mean, a I you at many far for you categories, last and going be years think think that growth. we more ago. not XX see But us surprise brand this have growth is we've you in

of at we've And I millions the has mentioned continued out the don't future branch think, a that there earlier, and So in still perform. I see suffering patient believable I competitor of of only And treated of to guidance. that XX% as going look tens I are to the this to over real when we're patients kind population. growth the it's see continue

Unidentified Analyst

Okay. to Good be. Good. place

Tom McCourt

Yeah. We're providing.

Unidentified Analyst

for Tom. thanks So the comment

Tom McCourt

Thanks, Tim.

Operator

And the Instructions] is Lebowitz. from [Operator David your of line next question

Avatar Jones

by Hi. Can This David. is coming is Is on Is I And Avatar if Jones the impacted volumes. where color you. that My regards question but organic? Is more on are Thank XX-day Phase something you that? some to the provide in X of I those sort apologize it for missed, this just publication? from? scripts?

Tom McCourt

It's seeing month higher certainly a unique as growth. think, I as of really a as we're of level we're as strong, we I the website activity When XXX,XXX talk far and is seeing ongoing searches -- showing mean, is which our XXX,XXX above. the would do visitors to about which all online I state probably the well activity, patient. by

I drug. the awareness the patients raising to is of is of part think just I a to describe benefit ability what because your symptoms scripts who their to get are pain, their raise XX-day the disease, to think they this opposed see speaks And abdominal do adherence there's really overall we I therapy, abdominal think is to an ability on, to full hand. when do multiple broader hands. think better community point of we So now the of it I patients realize as

very XX% to think to it's look I you And but at overall work those around here, things. kind all So have do we of probably the it's of growing when including they're all XX%. still unaided still awareness, awareness, nicely

treatment them So option that there's that to push to make -- of we patients need opportunities out is continue out still a for an there them to on. for better lot there awful aware

Avatar Jones

had specific us been there areas Understood. a But question. Thank of I just you to provide business asked know And you. development. what any us guidance there's therapeutic sort follow-up of are can intrigues a I as interest? on And you? question

Tom McCourt

online is focused looking the of molecules lot terrain. he's the We've currently I are where GI we on and kind Maybe in leading of a here. know opportunities. are Mike you And Mike, Shetzline at comment seen But evaluating. that? now, we would charge right

Mike Shetzline

Sure. Sure Thanks. Tom.

amount proof-of-concept GI a the obviously and trying So to medical really But underserved space. like, Celiac in injury addressing there's disorders. And to And because of kind opportunities. or also prioritize patients we do diseases particular liver is list, gastroenterologists, of the the given trying needs opportunity huge where okay, we boil we're medical with great have firstly a but studies, be areas point, we and ocean, want to innovation. best-in-class failure, speak. things to And by suffering to we have hugely of think medical mechanisms that on disease another The fair diseases and hepatology do really not we're are want disease organic from population. focus with really a we're do the so know managed opportunity a very the liver we we target need first-in-class need. to the differentiated we those are can clear Tom's decisive

a itch, is feel it It's still have it transplant. may to gluten-free for of with a patients underserved. liver from can so an You morbidity-related can there. right? There I diet. diet. patient if that, really silicosis, huge people indication like a pruritus. talk lot other are to groups, hear opportunity are entities actually And Pruritus gluten-free you true be a they cured benefit is But that mean

medical So function a perspective. there need liver a huge from

even and pancreatitis, a that the is pancreatitis. they really you quite diseases still of And That's things have pain hepatology fluid when the management. origin. space, GI then but a in are Today, lot something IV comes Pancreatitis disorder you rare like, this patient in all medicine, with like, and no inflammation. has hospital therapies. a think rare immunology innovation of when And get bread-and-butter diseases into medical sad,

really We we time. have right the mentioned, want make we really opportunity. high broad and to of at a choice, have landscape a sure right So make the do lot But a as borrower. we

Avatar Jones

Thank appreciate you. you. Much it. Thank

Tom McCourt

Thanks Mike.

Operator

at this for questions. are no thank And everyone time, today's there would I further like call. joining to

You may disconnect. now

Ironwood Pharmaceuticals (IRWD) 8 Aug 212021 Q2 Earnings call transcript