2024 Q2 Form 10-Q Financial Statement

#000155837024007640 Filed on May 09, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1
Revenue $94.40M $74.88M
YoY Change -12.09% -28.05%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $36.96M $37.61M
YoY Change -29.57% 20.85%
% of Gross Profit
Research & Development $30.39M $25.82M
YoY Change -12.11% 100.94%
% of Gross Profit
Depreciation & Amortization $506.0K $513.0K
YoY Change 87.41% 79.37%
% of Gross Profit
Operating Expenses $67.35M $63.42M
YoY Change -22.64% 44.25%
Operating Profit $24.98M $11.02M
YoY Change -102.31% -81.66%
Interest Expense -$6.101M $7.231M
YoY Change -431.58% 373.54%
% of Operating Profit -24.43% 65.62%
Other Income/Expense, Net -$6.101M -$6.062M
YoY Change -188.2% -205.17%
Pretax Income $18.88M $4.958M
YoY Change -101.75% -92.47%
Income Tax $19.70M $9.100M
% Of Pretax Income 104.37% 183.54%
Net Earnings -$860.0K -$4.162M
YoY Change -99.92% -109.1%
Net Earnings / Revenue -0.91% -5.56%
Basic Earnings Per Share -$0.01 -$0.03
Diluted Earnings Per Share -$0.01 -$0.03
COMMON SHARES
Basic Shares Outstanding 159.0M 156.5M
Diluted Shares Outstanding 159.0M 157.7M

Balance Sheet

Concept 2024 Q2 2024 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $105.5M $121.5M
YoY Change -39.81% -83.58%
Cash & Equivalents $105.5M $121.5M
Short-Term Investments
Other Short-Term Assets $14.55M $14.62M
YoY Change -37.53% 42.17%
Inventory
Prepaid Expenses
Receivables $58.11M $72.02M
Other Receivables $0.00 $0.00
Total Short-Term Assets $178.2M $208.2M
YoY Change -43.9% -75.97%
LONG-TERM ASSETS
Property, Plant & Equipment $5.068M $5.288M
YoY Change -13.75% -12.09%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $4.257M $3.398M
YoY Change 8.6% 314.39%
Total Long-Term Assets $217.4M $230.6M
YoY Change -23.87% -20.17%
TOTAL ASSETS
Total Short-Term Assets $178.2M $208.2M
Total Long-Term Assets $217.4M $230.6M
Total Assets $395.6M $438.8M
YoY Change -34.42% -62.02%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.227M $6.222M
YoY Change -7.93% 5172.88%
Accrued Expenses $41.35M $44.52M
YoY Change -57.0% 87.65%
Deferred Revenue $2.100M $1.700M
YoY Change 40.0%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $199.8M
YoY Change -100.0%
Total Short-Term Liabilities $45.51M $252.4M
YoY Change -85.1% 958.77%
LONG-TERM LIABILITIES
Long-Term Debt $623.6M $473.5M
YoY Change 4.29% 19.37%
Other Long-Term Liabilities $34.74M $29.41M
YoY Change 11.93% 148.77%
Total Long-Term Liabilities $34.74M $29.41M
YoY Change 11.93% 148.77%
TOTAL LIABILITIES
Total Short-Term Liabilities $45.51M $252.4M
Total Long-Term Liabilities $34.74M $29.41M
Total Liabilities $80.25M $281.9M
YoY Change -76.15% 690.24%
SHAREHOLDERS EQUITY
Retained Earnings -$1.704B -$1.703B
YoY Change -0.54% 161.7%
Common Stock $1.382B $1.373B
YoY Change 1.11% 1.15%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$321.7M -$330.5M
YoY Change
Total Liabilities & Shareholders Equity $395.6M $438.8M
YoY Change -34.42% -62.02%

Cashflow Statement

Concept 2024 Q2 2024 Q1
OPERATING ACTIVITIES
Net Income -$860.0K -$4.162M
YoY Change -99.92% -109.1%
Depreciation, Depletion And Amortization $506.0K $513.0K
YoY Change 87.41% 79.37%
Cash From Operating Activities $33.47M $44.99M
YoY Change -4.28% -43.89%
INVESTING ACTIVITIES
Capital Expenditures $58.00K $68.00K
YoY Change -99.99% 423.08%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$58.00K -$68.00K
YoY Change -99.99% 423.08%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -49.37M -15.56M
YoY Change -112.37% -490.73%
NET CHANGE
Cash From Operating Activities 33.47M 44.99M
Cash From Investing Activities -58.00K -68.00K
Cash From Financing Activities -49.37M -15.56M
Net Change In Cash -15.97M 29.39M
YoY Change -97.18% -65.07%
FREE CASH FLOW
Cash From Operating Activities $33.47M $44.99M
Capital Expenditures $58.00K $68.00K
Free Cash Flow $33.41M $44.92M
YoY Change -103.46% -43.96%

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CY2024Q1 us-gaap Nature Of Operations
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><b style="font-weight:bold;">1. Nature of Business</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="font-weight:bold;visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;">Ironwood Pharmaceuticals, Inc. (“Ironwood” or the “Company”) is a gastrointestinal (“GI”) healthcare company on a mission to advance the treatment of GI diseases and redefine the standard of care for GI patients. The Company is focused on the development and commercialization of innovative GI product opportunities in areas of significant unmet need, leveraging its demonstrated expertise and capabilities in GI diseases.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;">LINZESS<sup style="font-size:7.5pt;line-height:100%;top:0pt;vertical-align:top;">®</sup> (linaclotide), the Company’s commercial product, is the first product approved by the United States Food and Drug Administration (the “U.S. FDA”) in a class of GI medicines called guanylate cyclase type C agonists (“GC-C agonists”) and is indicated for adult men and women suffering from irritable bowel syndrome with constipation (“IBS-C”) or chronic idiopathic constipation (“CIC”) and for pediatric patients ages 6-17 years-old suffering from functional constipation (“FC”). LINZESS is available to adult men and women suffering from IBS-C or CIC in the United States (the “U.S.”), Mexico and Saudi Arabia, adult men and women suffering from IBS-C or chronic constipation in Japan, and IBS-C in China, and pediatric patients ages 6-17 years old with FC in the U.S. Linaclotide is available under the trademarked name CONSTELLA<sup style="font-size:7.5pt;line-height:100%;top:0pt;vertical-align:top;">®</sup> to adult men and women suffering from IBS-C or CIC in Canada, and to adult men and women suffering from IBS-C in certain European countries.<span style="font-size:12pt;"> </span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"> <span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;">The Company has strategic partnerships with leading pharmaceutical companies to support the development and commercialization of linaclotide throughout the world. The Company and its partner, AbbVie Inc. (together with its affiliates, “AbbVie”), began commercializing LINZESS in the U.S. in December 2012. Under the Company’s collaboration for North America with <span style="color:#212529;background:#ffffff;">AbbVie</span>, total net sales of LINZESS in the U.S., as recorded by <span style="color:#212529;background:#ffffff;">AbbVie</span>, are reduced by commercial costs incurred by each party, and the resulting amount is shared equally between the Company and <span style="color:#212529;background:#ffffff;">AbbVie</span>. Additionally, development costs are shared equally between the Company and AbbVie.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;">Outside of the U.S., the Company earns royalties as a percentage of net sales of products containing linaclotide as an active ingredient by the Company’s collaboration partners. AbbVie has an exclusive license from the Company to develop and commercialize linaclotide in all countries other than China (including Hong Kong and Macau), Japan and the countries and territories of North America (the “<span style="color:#212529;background:#ffffff;">AbbVie</span> License Territory”). In addition, <span style="color:#212529;background:#ffffff;">AbbVie</span> has exclusive rights to commercialize linaclotide in Canada as CONSTELLA and in Mexico as LINZESS. Astellas Pharma Inc. (“Astellas”), the Company’s partner in Japan, has an exclusive license to develop, manufacture, and commercialize linaclotide in Japan. AstraZeneca AB (together with its affiliates) (“AstraZeneca”), the Company’s partner in China, has the exclusive right to develop, manufacture, and commercialize products containing linaclotide in China (including Hong Kong and Macau) (the “AstraZeneca License Territory”).</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;">In June 2023, the Company completed a tender offer to purchase 98% of the outstanding ordinary shares of VectivBio Holding AG (“VectivBio”), a clinical-stage biotechnology company focused on the discovery and development of treatments for severe, rare GI conditions for which there is a significant unmet medical need (the “VectivBio Acquisition”). In December 2023, the Company completed a squeeze-out merger under Swiss law to acquire all remaining outstanding ordinary shares and VectivBio Holding AG was merged with and into Ironwood Pharmaceuticals GmbH, a wholly-owned subsidiary of Ironwood organized under the laws of Switzerland. Through the acquisition, the Company is advancing apraglutide, a next-generation, synthetic peptide analog of glucagon-like peptide-2, for rare GI diseases, including short bowel syndrome with intestinal failure (“SBS-IF”), a severe malabsorptive condition. In February 2024, the Company announced positive topline results from its pivotal Phase III clinical trial, STARS, which evaluated the efficacy and safety of once-weekly subcutaneous apraglutide in reducing parenteral support dependency in adult patients with SBS-IF, and plans to submit a new drug application and other regulatory filings for apraglutide for use in adult patients with SBS who are dependent on parenteral support. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;background:#ffffff;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;">The Company has a collaboration and license option agreement (the “COUR Collaboration Agreement”) with COUR Pharmaceutical Development Company, Inc. (“COUR”), a biotechnology company developing novel immune-modifying nanoparticles to treat autoimmune diseases. The COUR Collaboration Agreement grants the Company an </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;">option to acquire an exclusive license to research, develop, manufacture and commercialize, in the U.S., products containing CNP-104, a potential treatment for primary biliary cholangitis, a rare autoimmune disease targeting the liver.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;">These and other agreements are more fully described in Note 4, <i style="font-style:italic;">Collaboration, License and Other Agreements</i>, to these condensed consolidated financial statements.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;">The Company is also advancing IW-3300, a GC-C agonist, for the potential treatment of visceral pain conditions, including interstitial cystitis / bladder pain syndrome and endometriosis.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt;">The Company was incorporated in Delaware on January 5, 1998 as Microbia, Inc. On April 7, 2008, the Company changed its name to Ironwood Pharmaceuticals, Inc. To date, the Company has dedicated a majority of its activities to the research, development and commercialization of linaclotide, as well as to the research and development of its other product candidates.</p>
CY2024Q1 us-gaap Use Of Estimates
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="font-style:italic;font-weight:bold;">Use of Estimates </span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><span style="font-size:9pt;visibility:hidden;">​</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">The preparation of condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles requires the Company’s management to make estimates and judgments that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the amounts of revenues and expenses during the reported periods. On an ongoing basis, the Company’s management evaluates its estimates, judgments and methodologies. Estimates and assumptions in the condensed consolidated financial statements include those related to revenue recognition; accounts receivable; useful lives of long-lived assets; impairment of long-lived assets, including goodwill; valuation procedures for right-of-use assets and operating lease liabilities; income taxes, including uncertain tax positions and the valuation allowance for deferred tax assets; research and development expenses; contingencies; defined benefit pension liabilities; and share-based compensation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known. </p>
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CY2024Q1 us-gaap Lessee Operating Lease Liability Payments Due
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CY2023Q4 us-gaap Unamortized Debt Issuance Expense
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CY2024Q1 us-gaap Long Term Debt Maturities Repayments Of Principal Remainder Of Fiscal Year
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CY2024Q1 us-gaap Debt Instrument Carrying Amount
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CY2024Q1 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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CY2024Q1 us-gaap Allocated Share Based Compensation Expense Net Of Tax
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6834000
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20100000

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