Shares of Ironwood Pharmaceuticals (IRWD) added ~15% in the premarket on Friday after the company set its 2026 revenue outlook ahead of Street forecasts, citing higher net sales from Linzess, a bowel disease therapy it markets with AbbVie (ABBV).
The Boston, Massachusetts-based biotech projected Linzess net sales to reach $1.125B – $1.175B next year compared to $860M – $890M in 2026, expanding its total revenue to $450M – $475M compared to $319.5M in the consensus.
Ironwood (IRWD) said it expects net sales of the drug to rise year over year as it has lowered Linzess’s list price with effect from Jan. 1, 2026, in reaction to the “evolving health care dynamics and to support ongoing patient access.”
“We expect higher net sales in 2026 for LINZESS year-over-year, specifically driven by the elimination of the inflationary component of statutory required rebates across channels, including Medicaid, due to the decrease in list price,” the company added.
Citing higher Linzess net sales and benefits from its cost management initiatives, the company said its adjusted EBITDA could exceed $300M in 2026 compared to more than $135M last year. However, Ironwood (IRWD) maintained its 2025 revenue outlook of $290M – $310M and reported more than $200M in cash and cash equivalents at the end of the year.