Ironwood: Medicare Is Not The Problem I Thought It Was

I rate Ironwood Pharmaceuticals, Inc. a buy with a $5.25 fair value. LINZESS generated $143.74 per 30 capsules, close to Medicare’s $136 price for 2027. The 44% sales increase was mostly pricing-driven, while demand grew only 4% to 5%. My valuation assumes substantial debt reduction and gives apraglutide no value.

I started with the bear case because it looked almost too easy. LINZESS faces a Medicare price of $136 in 2027, licensed generic entry can begin in March 2029, and Ironwood Pharmaceuticals, Inc.