Slides
Page 1
Ironwood Pharmaceuticals Q2 2026 Investor Update August 6 , 2026 Ironwood®
Page 2
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned not to place undue reliance on these forward-looking statements, including statements about our ability to execute on our mission; our strategy, business, financial position and operations; our ability to drive growth and profitability; the commercial potential of LINZESS; our financial performance and results, and guidance and expectations related thereto; LINZESS U.S. net sales, total revenues and adjusted EBITDA in 2026; demand growth expectations for FY 2026; key design elements of the confirmatory Phase 3 clinical trial, STARS-2, for apraglutide; Ironwood's goal that apraglutide will be the first long-acting GLP-2 analog to market. These forward-looking statements speak only as of the date of this press release, and Ironwood undertakes no obligation to update these forward-looking statements. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statement. Applicable risks and uncertainties include those related to the effectiveness of development and commercialization efforts by us and our partners; preclinical and clinical development, manufacturing and formulation development of linaclotide, apraglutide and our other product candidates; the risk of uncertainty relating to pricing and reimbursement policies in the U.S., which, if not able for our products, could hinder or prevent our products’ commercial success; the risk that clinical programs and studies, including for apraglutide, may not progress or develop as anticipated, including that studies are delayed or discontinued for any reason, such as safety, tolerability, enrollment, manufacturing, economic or other reasons; the risk that findings from our completed nonclinical studies and clinical trials may not be replicated in later trials and earlier-stage clinical trials may not be predictive of the results we may obtain in later-stage clinical trials or of the likelihood of regulatory approval; the risk that apraglutide will not be approved by the FDA or other regulatory agencies; the risk of competition or that new products may emerge that provide different or better alternatives for treatment of the conditions that our products are approved to treat; the risk that healthcare reform and other governmental and private payor initiatives may have an adverse effect upon or prevent our products’ or product candidates’ commercial success; the efficacy, safety and tolerability of linaclotide and our product candidates; the risk that the commercial and therapeutic opportunities for LINZESS, apraglutide or our other product candidates are not as we expect; decisions by regulatory and judicial authorities; the risk we may never get additional patent protection for linaclotide, apraglutide and other product candidates, that patents for linaclotide, apraglutide or other products may not provide adequate protection from competition, or that we are not able to successfully protect such patents; the risk that we are unable to manage our expenses or cash use, or are unable to commercialize our products as expected; the risk that the development of apraglutide is not successful or that any of our product candidates does not receive regulatory approval or is not successfully commercialized; outcomes in legal proceedings to protect or enforce the patents relating to our products and product candidates, including abbreviated new drug application litigation; the risk that financial and operating results may differ from our projections; developments in the intellectual property landscape; challenges from and rights of competitors or potential competitors; developments in accounting guidance or practice; Ironwood’s or AbbVie’s accounting practices, including reporting and settlement practices as between Ironwood and AbbVie; the risk that our indebtedness could adversely affect our financial condition or restrict our future operations; and the risks listed under the heading “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2025, and in our subsequent Securities and Exchange Commission filings. Ironwood uses non-GAAP financial measures in this presentation, which should be considered only a supplement to, and not a substitute for or superior to, GAAP measures. Refer to the Reconciliation of Non- GAAP Financial Measures to GAAP Results table and to the Reconciliation of Adjusted EBITDA to GAAP net income table and related footnotes on pages 15 to 17 of this presentation. Further, Ironwood considers the net profit for the U.S. LINZESS brand collaboration with AbbVie in assessing the product’s performance and calculates it based on inputs from both Ironwood and AbbVie. This figure should not be considered a substitute for Ironwood’s GAAP financial results. An explanation of our calculation of this figure is provided in the U.S. LINZESS Brand Collaboration table and related footnotes on pages 18-19 of this presentation. LINZESS® is a registered trademark of Ironwood Pharmaceuticals, Inc. Any other trademarks referred to in this presentation are the property of their respective owners. All rights reserved. Safe Harbor Statement 2
Page 3
Today’s agenda 3 • Strategic Priorities and Q2 Business Highlights Tom McCourt, Chief Executive Officer • Maximizing LINZESS Tammi Gaskins, Chief Commercial Officer • Apraglutide STARS-2 Update Jeffrey Silber, M.D., Chief Medical Officer and Head of Research and Drug Development • Financial Highlights and FY 2026 Guidance Ron Silver, Interim Chief Financial Officer
Page 4
Introducing our newest leadership team members 4 Jeffrey Silber, M.D. Chief Medical Officer and Head of Research and Drug Development Ron Silver Interim Chief Financial Officer
Page 5
5 Q2 net sales of $282 million1; $555 million year to date representing 44% year-over-year growth Year to date net sales growth driven by price improvement2 and 5% EUTRx demand growth3 New indication granted by the FDA, making LINZESS the first and only Rx approved for pediatric functional constipation4 STARS-2 confirmatory trial was initiated in June and is now actively recruiting patients STARS, STARS-Extend, and STARS-2 are intended to support a comprehensive NDA submission and potential best-in-class profile Our goal is that apraglutide will be the first long- acting GLP-2 analog to market Revised FY net sales guidance is $1.15 billion to $1.20 billion 30% year-over-year growth Raised total revenue guidance to $460 to $485 million and adjusted EBITDA guidance5 to greater than $310 million GAAP net income of $51 million and adjusted EBITDA of $83 million5 Repaid $200 million convertible notes with cash on hand Maximize LINZESS Advance Apraglutide Deliver Sustained Profits and Cash Flow Q2 2026 Highlights 1 LINZESS U.S. net sales are reported by AbbVie, and LINZESS costs incurred by each of us and AbbVie are reported in our respec tive financial statements. LINZESS costs include certain discounts recognized and cost of goods sold incurred by AbbVie, as well as commercial costs incurred by AbbVie and Ironwood that are attributable to the cost-sharing arrangement between the parties. 2 Improved net price due to elimination of inflationary rebates and favorable time-phasing of gross-to-net rebates reserves in the first half of 2026 relative to 2025. 3 EUTRx, total prescription extended units; IQVIA Weekly National Prescription Audit, June 2026. 4 In May 2026 the FDA approved the use of LINZESS in pediatric patients two years of age and older with functional constipation 5 Refer to the reconciliation of GAAP net income to adjusted EBITDA on slide 18 of this presentation. Ironwood raises FY 2026 guidance building on second quarter of strong net sales and execution across strategic priorities
Page 6
The U.S. prescription market leader for adults with Irritable Bowel Syndrome with Constipation (IBS-C) and Chronic Idiopathic Constipation (CIC) 6 Maximize LINZESS
Page 7
Mid-single digit demand growth year-to-date leads to raise of full-year financial guidance 7 EUTRx (total pills) Demand Volume YoY • Q2 net sales of $282 million; $555 million year-to-date representing 44% year-over- year growth • Year-to-date net sales growth driven by price improvement and 5% EUTRx demand growth1 • We now expect mid-single digit demand growth for FY 2026 12 14 16 18 20 22 24 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec EUTRx Millions 2024 2025 2026 +5% YTD Y/Y 1 EUTRx, total extended units; IQVIA Monthly National Prescription Audit, June 2026.
Page 8
Glucagon-like peptide-2 (GLP-2) analog for Short Bowel Syndrome with Intestinal Failure (SBS-IF) 8 Advance Apraglutide
Page 9
9 STARS Phase 3: Primary Endpoint 24 Weeks1 STARS Extend: PS Volume Change thru 184 weeks2 -12.5% P=0.001 Apraglutide is the only once-weekly GLP-2 analog with parenteral support (PS) volume reduction twice the rate of placebo and sustained improvement over time 1 Data presented during oral presentation at Digestive Disease Week (DDW) May 2024; 2 Data presented in a poster at the American College of Gastroenterology (ACG) 2025 Annual Scientific Meeting & Postgraduate Co urse STARS: A Multicenter, Double-blind, Randomized, Placebo -controlled Trial to Evaluate the Efficacy and Safety of Apraglutide in Adult Subjects with Short Bowel Syndrome with Intestinal Failure —N=164 with 2:1 randomization Subjects originally enrolled in study TA799-007 or TA799 -013. Error bars show standard error. Changes in weekly PS volume are presented for APRA/APRA (all patients from STARS Nutrition and those from STARS who received apraglutide, during the double -blind 24 -week [patients with stoma] or 48 -week [patients with colon-in-continuity] period of STARS, and opted to continue apraglutide in STARS Extend), PBO/APRA (patients who received PBO in STARS and opted to enroll into STARS Extend and receive apraglutide) and All APRA (APRA/APRA and PBO/APRA groups combined).
Page 10
STARS-2 Phase 3 confirmatory clinical trial now actively recruiting patients 10 PRIMARY ENDPOINT IN OVERALL POPULATION Relative PS volume change from baseline to Week 24 KEY SECONDARY ENDPOINTS IN OVERALL POPULATION Clinical response (>= 20% PS volume reduction) Days off PS per week Enteral autonomy Apraglutide Placebo 24-week trial duration 2 arms, apraglutide and placebo 1:1 randomization Apraglutideonce-weekly dosing PS Stabilization / Optimization RandomizationScreening
Page 11
11 Financial Highlights and 2026 Guidance
Page 12
Ironwood continued to deliver sustained profits in the second quarter 12 $51M GAAP Net Income $83M Adjusted EBITDA3 $113M Total Ironwood Revenues Primarily driven by $110M in U.S. LINZESS collaboration revenue $282M LINZESS U.S. Net Sales1,2 1 LINZESS U.S. net sales are reported by AbbVie, and LINZESS costs incurred by each of us and AbbVie are reported in our respec tive financial statements. LINZESS costs include certain discounts recognized and cost of goods sold incurred by AbbVie, as well as commercial costs incurred by AbbVie and Ironwood that are attributable to the cost-sharing arrangement between the parties. See slides 7 and 18 for detailed breakdown. 2 Improved net price due to elimination of inflationary rebates and favorable time-phasing of gross-to-net rebates reserves in the first quarter of 2026 relative to 2025. 3 Refer to the Reconciliation of GAAP net income to adjusted EBITDA on slide 17 of this presentation. Q2 2026 LINZESS net sales as reported by AbbVie were $282M, up 14% year-over-year, driven by improved net pricing and 4% demand growth YoY $0.31/share – basic and diluted
Page 13
Raising full-year 2026 financial guidance on strength of LINZESS U.S. net sales 13 1 Adjusted EBITDA is calculated by subtracting stock-based compensation, restructuring expenses, net interest expense, income taxes, and depreciation and amortization, from GAAP net income (loss). For purposes of this guidance, we have assumed that Ironwood will not incur material expenses related to business development activities in 2026. Ironwood does not provide guidance on GAAP net income or a reconciliation of expected adjusted EBITDA to expected GAAP net income because, without unreasonable efforts, it is unable to predict with reasonable ce rtainty the non-GAAP adjustments used to calculate adjusted EBITDA. These adjustments are uncertain, depend on various factors and could have a material impact on GAAP net income for the guidance period. Management believes this non-GAAP information is useful for investors, taken in conjunction with Ironwood’s GAAP financial statements, because it provides greater transparency and period-over-period comparability with respect to Ironwood’s operating performance. These measures are also used by management to assess the performance of the business. Investors should consider these non-GAAP measures only as a supplement to, not as a subs titute for or as superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. Previous FY 2026 Guidance (May 2026) Revised FY 2026 Guidance (August 2026) LINZESS U.S. net sales $1.125 to $1.175 billion $1.15 to $1.20 billion Total revenue $450 to $475 million $460 to $485 million Adjusted EBITDA1 >$300 million >$310 million
Page 14
14 APPENDIX
Page 15
Q2 2026 Financial Summary Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 (000s, except per share amounts) (000s, except per share amounts) GAAP net income1 $ 51,291 $ 92,064 Adjustments: Amortization of acquired intangible assets 204 407 Restructuring expenses, net - (40) Tax effect of adjustments - 10 Non-GAAP income1 $ 51,495 $ 92,441 GAAP net income per share – basic1 $ 0.31 $ 0.56 Adjustments to GAAP net income per share (as detailed above) - - Non-GAAP net income per share – basic1 $ 0.31 $ 0.56 Reconciliation of GAAP results to non-GAAP financial measures (page 1) 1 The company presents non-GAAP net income and non-GAAP net income per share to exclude amortization of acquired intangible assets and restructuring expenses, all net of tax effect. Investors should consider these non - GAAP measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP. For a reconciliation of the company’s non-GAAP financial measures to the most comparable GAAP measures, please refer to the table above. Additional information regarding the non -GAAP financial m easures is included in the company’s press release dated August 6, 2026. Management believes this non-GAAP information is useful for investors, taken in conjunction with Ironwood’s GAAP financial statements, beca use it provides greater transparency and period-over-period comparability with respect to Ironwood’s operating performance. These measures are also used by management to assess the performance of the business. In addition, these non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. 15
Page 16
Q2 2026 Financial Summary Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 (000s, except per share amounts) (000s, except per share amounts) GAAP net income per share – diluted1 $ 0.31 $ 0.55 Adjustments to GAAP net income per share (as detailed above) - - Non-GAAP net income per share – diluted1 $ 0.31 $ 0.55 Reconciliation of GAAP results to non-GAAP financial measures (page 2) 1 The company presents non-GAAP net income and non-GAAP net income per share to exclude amortization of acquired intangible assets and restructuring expenses, all net of tax effect. Investors should consider these non - GAAP measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP. For a reconciliation of the company’s non-GAAP financial measures to the most comparable GAAP measures, please refer to the table above. Additional information regarding the non -GAAP financial measures is included in the company’s press release dated August 6, 2026. Management believes this non-GAAP information is useful for investors, taken in conjunction with Ironwood’s GAAP financial statements, beca use it provides greater transparency and period-over-period comparability with respect to Ironwood’s operating performance. These measures are also used by management to assess the performance of the business. In addition, these non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. 16
Page 17
Q2 2026 Financial Summary Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 (000s) (000s) GAAP net income1 $ 51,291 $ 92,064 Adjustments: Stock-based compensation 3,236 6,889 Restructuring expenses, net - (40) Interest expense 7,203 16,344 Interest and investment income (1,585) (3,283) Income tax expense 22,440 46,839 Depreciation and amortization 457 900 Adjusted EBITDA1 $ 83,042 $ 159,713 1 Ironwood presents GAAP net income and adjusted EBITDA, a non-GAAP measure. Investors should consider these non -GAAP measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP. For a reconciliation of the company’s non-GAAP financial measures to the most comp arable GAAP measures, please refer to the table above. Additional information regarding the non-GAAP financial measures is included in the company’s press release dated August 6, 2026. Management believes this non-GAAP information is useful for investors, taken in conjunction with Ironwood’s GAAP financial statements, because it provides greater transparency and period-over-period comparability with respect to Ironwood’s operating p erformance. These measures are also used by management to assess the performance of the business. In addition, these non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. Reconciliation of GAAP net income to adjusted EBITDA 17
Page 18
Q2 2026 Financial Summary – T otal Net Profit LINZESS U.S. Brand Collaboration Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 (000s) (000s) LINZESS U.S. net sales as reported by AbbVie2,3 $ 282,309 $ 554,834 AbbVie & Ironwood commercial costs, expenses and other discounts4 62,987 127,614 AbbVie & Ironwood R&D expenses5 4,683 7,885 Total net profit on sales of LINZESS $ 214,639 $ 419,335 Ironwood & AbbVie Total Net Profit1 1 Ironwood collaborates with AbbVie on the development and commercialization of linaclotide in North America. Under the terms o f the collaboration agreement, Ironwood receives 50% of the net profits and bears 50% of the net losses from the commercial sale of LINZESS in the U.S. The purpose of this table is to present calculations of the to tal net profit (loss) generated from the sales of LINZESS in the U.S., including the commercial costs and expenses and the research and development expenses related to LINZESS in the U.S. that are shared equally between t he parties under the collaboration agreement. 2 LINZESS net sales are recognized using AbbVie’s revenue recognition accounting policies and reporting conventions. As a result, certain rebates and discounts are cl assified as LINZESS U.S. commercial costs, expenses and other discounts within Ironwood’s calculation of collaborative arrangements revenue. 3 Year-over-year net sales increase primarily driven by improved net price due to elimination of inflationary rebates and able time-phasing of gross-to-net rebates reserves in the first half of 2026 relative to 2025. 4 Includes certain discounts recognized and cost of goods sold incurred by AbbVie; also includes commercial costs incurred by AbbVie and Ironwood that are attributable to the cost-sharing arrangement between the parties. 5 Expenses related to LINZESS in the U.S. are shared equally between Ironwood and AbbVie under the collaboration agreement. 18
Page 19
19 1 Ironwood collaborates with AbbVie on the development and commercialization of linaclotide in North America. Under the terms o f the collaboration agreement, Ironwood receives 50% of the net profits and bears 50% of the net losses from the commercial sale of LINZESS in the U.S. The purpose of this table is to present calculations of Ironwo od’s share of net profit (loss) generated from the sales of LINZESS in the U.S. and Ironwood’s collaboration revenue/expense; however, the table does not present the research and development expenses related to LINZESS i n the U.S. that are shared equally between the parties under the collaboration agreement. 2 LINZESS net sales are recognized using AbbVie’s revenue recognition accounting policies and reporting conventions. As a result, certain rebates and discounts are classified as LINZESS U.S. commercial costs, expenses and other discounts within Ironwood’s calculation of collaborative arrangements revenue. 3 Year-over-year net sales increase primarily driven by improved net price due to elimination of inflationary rebates and favorable time-phasing of gross-to-net rebates reserves in the first half of 2026 relative to 2025. 4 Includes certain discounts recognized and cost of goods sold incurred by AbbVie; also includes commercial costs incurred by AbbVie and Ironwood that are attributable to the cost -sharing arrangement between the parties. 5 Commercial margin is defined as commercial profit on sales of LINZESS as a percent of total LINZESS U.S. net sales. 6 Year-over-year decrease reflects impact of the reduction to Ironwood’s commercial expenses and corresponding reimbursement from AbbVie due to Ironwood’s strategic reorganization announced in January 2025. Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 (000s) (000s) LINZESS U.S. net product sales as reported by AbbVie2,3 $ 282,309 $ 554,834 AbbVie & Ironwood commercial costs, expenses and other discounts4 62,987 127,614 Commercial profit on sales of LINZESS $ 219,322 $ 427,220 Commercial Margin5 78% 77% Ironwood’s share of net profit 109,661 213,610 Reimbursement for Ironwood’s commercial expenses6 384 657 Ironwood’s collaborative arrangements revenue $ 110,045 $ 214,267 Commercial Profit & Collaboration Revenue1 LINZESS U.S. Brand Collaboration Q2 2026 Financial Summary – Commercial Profit & Collaboration Revenue