Ironwood Pharmaceuticals, Inc. · NASDAQ:IRWD

Ironwood Pharmaceuticals — Q3 2018 Earnings Presentation

19 slides from Ironwood Pharmaceuticals's earnings presentation, Nov 6, 2018

  1. Slide 1: Ironwood 3Q 2018 Investor Update

    A COMMERCIAL BIOTECHNOLOGY COMPANY Ironwood 3Q 2018 Investor Update November 6, 2018

  2. Slide 2: Introduction

    Introduction Meredith Kaya Vice President, Investor Relations and Corporate Communications

  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 the proposed separation of our operations into two independent, publicly traded companies, including the st

  4. Slide 4: 3Q 2018 Overview

    3Q 2018 Overview Peter Hecht Chief Executive Officer

  5. Slide 5: Strong 3Q 2018 Performance

    Strong 3Q 2018 Performance: Delivering against 2018 goals and executing on separation plans Strong LINZESS® growth; Continued pipeline Progress towards expanding global presence: momentum: separation: U.S. volume up 12% in 3Q 2018 Two Phase III and three On track to launch two yoy1 and ~$205M2 in LI

  6. Slide 6: GI Pipeline

    GI Pipeline Tom McCourt Chief Commercial Officer

  7. Slide 7: LINZESS is the Branded Prescription Market Leader in its Class

    LINZESS is the Branded Prescription Market Leader in its Class 80,000 70,000 TRx Volume2 60,000 ✓ Continuing strong growth: U.S. volume up 12% in 50,000 3Q18 yoy; trending ~10% above pre-DTC trend2 40,000 ✓ Leading payer access: >80% commercial and 30,000 >90% Med Part D patients with unrestricted a

  8. Slide 8: Continued Momentum across GI Development Pipeline

    Continued Momentum across GI Development Pipeline LINACLOTIDE for additional MD-7246 (linaclotide delayed abdominal symptoms release) for intestinal pain IW-3718 for persistent GERD ✓ Phase IIIb trial ongoing; data expected mid-2019 ✓ Expect to initiate Phase II trial in Q1 2019 ✓ Two Phase III tria

  9. Slide 9: sGC Pipeline

    sGC Pipeline Chris Wright Chief Development Officer

  10. Slide 10: Harnessing the Power of sGC Pharmacology

    Harnessing the Power of sGC Pharmacology IND Current Pipeline* Discovery Enabling Phase 1 Phase 2 Phase 3 Status and Anticipated Next Milestone Vascular sGC Stimulator • Worldwide rights Olinciguat Sickle Cell Disease • Granted Orphan Drug Designation by U.S. FDA • Top-line Phase II data expected 2H

  11. Slide 11: 3Q 2018 Financial Summary

    3Q 2018 Financial Summary Gina Consylman Chief Financial Officer

  12. Slide 12: LINZESS 3Q 2018 Change in Estimate to Ironwood's Collaboration Revenue

    LINZESS 3Q 2018 Change in Estimate to Ironwood’s Collaboration Revenue 3Q 2018 LINZESS U.S. Brand Collaboration - Commercial Profit & Collaboration Revenue1 Three Months Ended Three Months Ended Three Months Ended September 30, 2018 September 30, 2018 September 30, 2018 (Excluding Adjustment) (Net S

  13. Slide 13: 3Q Key Business Highlights

    3Q Key Business Highlights 1 Growing LINZESS sales and brand profitability; change-in-estimate impacted collaborative arrangements revenue 2 Progressing transition of lesinurad back to AstraZeneca; expected by February 2019 3 On track to complete separation and launch two new companies in 1H 2019 12

  14. Slide 14: 3Q 2018 Financial Performance

    3Q 2018 Financial Performance • $65.7M in Ironwood revenues: – $52.3M in Ironwood’s share of net profits from LINZESS U.S. net sales (including $29.7M reduction due to LINZESS net sales adjustment) – $10.3M in linaclotide API sales • $234.8M in total operating expenses (incl. $46.8M in R&D and $55.2

  15. Slide 15: Full Year 2018 Financial Guidance

    Full Year 2018 Financial Guidance Ironwood continues to expect: SG&A Expenses $230 - $250 million R&D Expenses $160 – $180 million Total LINZESS Marketing & Sales Expenses (IRWD + AGN) $230 - $260 million Net Interest Expense <$40 million Ironwood now expects: Total Restructuring Expenses (incl. 201

  16. Slide 16: A Commercial Biotechnology Company

    A COMMERCIAL BIOTECHNOLOGY COMPANY

  17. Slide 17: 3Q 2018 Financial Summary

    3Q 2018 Financial Summary Three Months Ended Condensed Consolidated Statement of Operations (unaudited) September 30, 2018 (000s, except per share amounts) Revenue $ 65,686 Cost and expenses: Cost of revenue, excluding amortization of acquired intangible assets 4,616 Write down of commercial supply

  18. Slide 18: 3Q 2018 Financial Summary: Reconciliation of GAAP to Non-GAAP

    3Q 2018 Financial Summary Reconciliation of GAAP Results to Non-GAAP Financial Measures Three Months Ended September 30, 2018 (000s, except per share amounts) GAAP net loss $ (174,351) Adjustments: Mark-to-market adjustments on the derivatives related to convertible notes, net (3,489) Amortization o

  19. Slide 19: 3Q 2018 LINZESS U.S. Brand Collaboration Summary

    3Q 2018 LINZESS U.S. Brand Collaboration Summary Ironwood & Allergan Total Net Profit Three Months Ended Three Months Ended Three Months Ended September 30, 2018 September 30, 2018 September 30, 2018 (Including Adjustment) (Excluding Adjustment) (Net Sales Adjustment) (000s) (000s) (000s) LINZESS U.

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