Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you speak to the confidence you have in achieving high single-digit volume growth for LINZESS without in-person promotion? A: Thomas McCourt, CEO, explained that Ironwood still has a solid marketing mix, including AI sales personnel in key offices and consumer advertising driving growth. Despite reducing the selling effort by over 50% and pulling back on media buys, demand remains strong. The company maintains broad payer access and continues to see market share growth, even with emerging competitors.
Q: What is the expected cadence of cost savings and R&D expenses moving forward? A: Gregory Martini, CFO, stated that the full impact of cost savings will be seen starting in Q2 2025. R&D expenses are expected to remain stable in 2025 due to ongoing activities related to apraglutide. A decrease in R&D spending is anticipated in 2026.
Q: Can you discuss the confidence in maintaining compliance with debt covenants and the adjustments made to EBITDA definitions? A: Gregory Martini, CFO, expressed high confidence in maintaining covenant compliance throughout 2025. Adjustments to the adjusted EBITDA definition, including stock-based compensation, provide clarity and additional room for compliance.
Q: What are the characteristics of patients achieving enteral autonomy with apraglutide, and how does this compare to the double-blind study period? A: Mike Shetzline, CMO, noted that patients achieving enteral autonomy include both stoma and CIC patients. The extension study increased the number of patients achieving autonomy to 27, showing robust outcomes compared to the double-blind period.
Q: How will the Medicare Part D redesign impact LINZESS revenues, and when is this expected to occur? A: Gregory Martini, CFO, explained that the full-year guidance accounts for the redesign's impact. While the timing may vary, the company expects to gain better insights into price exposure as the year progresses.
Q: What are the anticipated launch expenses for apraglutide, and how is the company managing the 2026 convertible notes? A: Gregory Martini, CFO, stated that commercial planning expenses for apraglutide are not significant yet but will ramp up closer to the 2026 launch. The company is focused on strengthening the balance sheet and driving cash flows to manage the convertible notes.
Q: Can you discuss further cost structure streamlining opportunities given the current capital structure? A: Gregory Martini, CFO, mentioned that the company is focused on profits and cash flows for 2025 and will continue to evaluate investment priorities to drive long-term value.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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