Ironwood Pharmaceuticals, Inc. · NASDAQ:IRWD
Ironwood Pharmaceuticals — Q2 2018 Earnings Presentation
18 slides from Ironwood Pharmaceuticals's earnings presentation, Aug 6, 2018
Slide 1: Ironwood 2Q 2018 Investor Update
A COMMERCIAL BIOTECHNOLOGY COMPANY Ironwood 2Q 2018 Investor Update August 6, 2018
Slide 2: Introduction
Introduction Meredith Kaya Vice President, Investor Relations and Corporate Communications
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 the proposed separation of our operations into two independent, publicly traded companies, including the co
Slide 4: 2Q 2018 Overview
2Q 2018 Overview Peter Hecht Chief Executive Officer
Slide 5: Continued momentum in 2Q 2018
Continued momentum in 2Q 2018 Demonstrated by: Strong commercial execution with LINZESS® (linaclotide) Decision to terminate U.S. lesinurad licensing agreement with AstraZeneca following review of test market data Continued pipeline advancement, including 2 Phase III program initiations and 4
Slide 6: Commercial Update
Commercial Update Tom McCourt Chief Commercial Officer
Slide 7: Lesinurad test market results and decision
Lesinurad test market results and decision • In early 2018, launched robust initiative to explore comprehensive set of marketing mix options for lesinurad in select test markets • In July 2018, following assessment of the test market data, concluded results did not meet expectations – Test market da
Slide 8: Important advancements across GI pipeline in 2Q 2018
Important advancements across GI pipeline in 2Q 2018 LINZESS® Linaclotide Delayed Release IW-3718 Continued strong U.S. demand Reached agreement with FDA on trial Initiated pivotal Phase III program Initiation of Phase IIIb trial design and endpoints • Exploring effect on heartburn severity
Slide 9: sGC Pipeline Advancements
sGC Pipeline Advancements Chris Wright Chief Development Officer
Slide 10: Encouraging progress in 2Q 2018 within sGC development + discovery pipeline
Encouraging progress in 2Q 2018 within sGC development + discovery pipeline Olinciguat Pre-clinical tissue-targeted Praliciguat sGC programs (IW-1973) (IW-1701) 2 Phase II trials ongoing in HFpEF 2 Phase II trials ongoing IW-6463: development candidate for and diabetic nephropathy • Achalasia: enrol
Slide 11: 2Q 2018 Financial Summary
2Q 2018 Financial Summary Gina Consylman Chief Financial Officer
Slide 12: Strong 2Q 2018 financial performance
Strong 2Q 2018 financial performance • $81M in Ironwood revenues, up 25% year-over-year, driven by: – ~$192M in LINZESS net sales with 60% commercial margin – ~$9M in linaclotide API sales to Astellas – ~$3M in linaclotide royalties, co-promotion and total lesinurad net sales • $121M in total operat
Slide 13: Financial impact of lesinurad data readout and termination
Financial impact of lesinurad data readout and termination • Expect ~$75M to $100M in FY 2019 operating expense savings (primarily SG&A) • Planned reduction in workforce of ~125 employees, primarily in field-based sales • Estimated aggregate charges of ~$10M-$13M (expected to be recorded primarily i
Slide 14: Full year 2018 financial guidance
Full year 2018 financial guidance Ironwood continues to expect: R&D Expenses $160 – $180 million SG&A Expenses $230 - $250 million Total LINZESS Marketing & Sales Expenses (IRWD + AGN) $230 - $260 million Net Interest Expense <40 million Ironwood now expects: Total Restructuring Expenses (incl. 2018
Slide 15: A Commercial Biotechnology Company
A COMMERCIAL BIOTECHNOLOGY COMPANY
Slide 16: 2Q 2018 financial summary
2Q 2018 financial summary Condensed Consolidated Statement of Operations (unaudited) Three Months Ended June 30, 2018 (000s, except per share amounts) Revenue $ 81,106 Cost and expenses: Cost of revenue, excluding amortization of acquired intangible assets 4,065 Write down of commercial supply and i
Slide 17: 2Q 2018 Financial Summary
2Q 2018 Financial Summary Reconciliation of GAAP Results to Non-GAAP Financial Measures Three Months Ended June 30, 2018 (000s, except per share amounts) GAAP net loss $ (49,380) Adjustments: Mark-to-market adjustments on the derivatives related to convertible notes, net 809 Amortization of acquired
Slide 18: 2Q 2018 LINZESS U.S. Brand Collaboration Summary
2Q 2018 LINZESS U.S. Brand Collaboration Summary Commercial Profit & Collaboration Revenue1 Ironwood & Allergan Total Net Profit Three Months Ended Three Months Ended June 30, 2018 June 30, 2018 (000s) (000s) LINZESS U.S. net product sales $ 191,826 LINZESS U.S. net product sales $ 191,826 Commercia
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