Ironwood Pharmaceuticals, Inc. · NASDAQ:IRWD

Ironwood Pharmaceuticals — Q3 2020 Earnings Presentation

21 slides from Ironwood Pharmaceuticals's earnings presentation, Nov 5, 2020

  1. Slide 1: Ironwood 3Q 2020 Investor Update

    Ironwood 3Q 2020 Investor Update November 5, 2020

  2. Slide 2: Introduction

    Introduction Meredith Kaya

  3. Slide 3: Safe Harbor Statement

    Safe Harbor Statement This presentation contains forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, including statements about our ability to execute on our vision to become a leader in GI; our ability to execute on our strategy, incl

  4. Slide 4: Today's Agenda

    Today’s Agenda • Introduction Meredith Kaya, VP Strategy, Investor Relations & Communications • Overview Mark Mallon, Chief Executive Officer • Commercial Performance Mark Plinio, Chief Commercial Officer • 3Q Financial Highlights & 2020 Guidance Gina Consylman, Chief Financial Officer 4

  5. Slide 5: 3Q 2020 Overview

    3Q 2020 Overview Mark Mallon

  6. Slide 6: Become the Leading U.S. Gastrointestinal Healthcare Company

    IRONWOOD’S VISION & MISSION Become the Leading U.S. Gastrointestinal Healthcare Company We are dedicated to advancing the treatment of GI diseases and redefining the standard of care for GI patients 6

  7. Slide 7: Executing on Our Strategy

    Executing on Our Strategy Drive LINZESS® Deliver Advance U.S. GI (linaclotide) growth sustainable profits development portfolio ✓ $241M in U.S. LINZESS net sales, ✓ Sixth consecutive profitable quarter ✓ Discontinuing IW-3718 following results of up 10% Y/Y1 • 3Q 2020 GAAP net income of $34M and pla

  8. Slide 8: Commercial Highlights

    Commercial Highlights Mark Plinio

  9. Slide 9: LINZESS Remains #1 Prescribed Medicine for IBS-C/CIC with Nearly 40% Market Share

    LINZESS Remains #1 Prescribed Medicine for IBS-C/CIC with Nearly 40% Market Share1 LINZESS Y/Y Total Rx Demand2 IBS-C/CIC Market Share1 37,000,000 LINZESS all-Time 45 High (40%) 36,000,000 40 LINZESS (39%) 35 35,000,000 ~7% LACTULOSE (35%) Total Rx Demand 30 Market Share % 34,000,000 ~9% 25 33,000,0

  10. Slide 10: Strong LINZESS New-to-brand Volume Growth and 90-Day Prescription Growth

    Strong LINZESS New-to-brand Volume Growth and 90-Day Prescription Growth LINZESS NBRx Volume Growth2 LINZESS 90-Day Prescription Growth3 42.5 ~10% 122,000 growth 42.0 120,000 Average TRx Fill Size 41.5 118,000 41.0 116,000 40.5 114,000 40.0 Avg % of TRx that is 90 ct4 112,000 39.5 19% 17% 110,000 15

  11. Slide 11: LINZESS: Key Drivers for Future Growth Opportunity

    LINZESS: Key Drivers for Future Growth Opportunity Label Expansion: Overall Updated Consumer Field Force Redeployment Abdominal Symptom Data Promotion Efforts • Most of the combined Ironwood- • The FDA approved sNDA for overall • Updated communication channels AbbVie field force is now back to abdom

  12. Slide 12: 3Q 2020 Financial Performance

    3Q 2020 Financial Performance Gina Consylman

  13. Slide 13: Organizational Restructuring

    Organizational Restructuring Ironwood streamlining its business in an effort to realign capital and resources • Planned reduction of ~100 employees • Expect total cost savings of ~$95 million: – ~$45 million of annualized savings related to the planned workforce reduction – ~$50 million related to e

  14. Slide 14: Continued Strong Financial Performance in 3Q 2020

    Continued Strong Financial Performance in 3Q 2020 3Q 2020 represents 6th consecutive quarter of profitability $103M $241M Total Ironwood Revenues U.S. LINZESS Net Sales1 10% Y/Y growth Primarily driven by $100M in U.S. LINZESS collaboration Primarily driven by 7% Y/Y prescription demand revenue grow

  15. Slide 15: Continued Cash Generation

    Continued Cash Generation Cash position continues to grow behind strength of LINZESS and disciplined capital allocation strategy $350 Allows us to be opportunistic when $308 Cash and Cash Equivalents (millions) $300 evaluating business development $253 opportunities $250 $231 Generated $54M in cash

  16. Slide 16: Increased Full Year 2020 Financial Guidance

    Increased Full Year 2020 Financial Guidance Ironwood now expects: Prior 2020 Guidance Revised 2020 Guidance LINZESS U.S. net sales High-single digit % Mid-single digit % increase growth increase Total Ironwood revenue $360 – 380 million $370 - $385 million Adjusted EBITDA1 >$105 million >$130 millio

  17. Slide 17: Executing on Our Strategy

    Executing on Our Strategy Drive LINZESS® Deliver Advance U.S. GI (linaclotide) growth sustainable profits development portfolio ✓ $241M in U.S. LINZESS net sales, ✓ Sixth consecutive profitable quarter ✓ Discontinuing IW-3718 following results of up 10% Y/Y1 • 3Q 2020 GAAP net income of $34M and pla

  18. Slide 18: Thank You

    Thank You 7 ~ q ronwoo

  19. Slide 19: 3Q 2020 Financial Summary

    3Q 2020 Financial Summary Reconciliation of GAAP results to non-GAAP financial measures1 Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 (000s, except per share (000s, except per share amounts) amounts) GAAP net income $ 34,423 $ 62,972 Adjustments: Mark-to-market adjustme

  20. Slide 20: 3Q 2020 Financial Summary

    3Q 2020 Financial Summary Reconciliation of GAAP income from continuing operations, net of income taxes to adjusted EBITDA Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 (000s) (000s) GAAP income from continuing operations, net of income taxes1 $ 34,423 $ 62,972 Adjustmen

  21. Slide 21: 3Q 2020 Financial Summary

    3Q 2020 Financial Summary LINZESS U.S. Brand Collaboration Commercial Profit & Collaboration Revenue1 Ironwood & AbbVie Total Net Profit Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 (000s) (000s)

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