This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ironwood's Bowel Drug Sales Disappoint

CAMBRIDGE, Mass. ( TheStreet) -- First quarter sales of Ironwood Pharmaceuticals' (IRWD - Get Report) irritable bowel drug Linzess missed Wall Street expectations by a wide margin but marketing partner Forest Labs (FRX) forecast improved sales for the remainder of the year.

Ironwood shares are down 10% to $16.05 in Tuesday pre-market trading.

Net sales of Linzess totaled $4.5 million for the quarter ended March 30, well below analyst expectations of sales in the $11-13 million range. Linzess was approved in December, so the first quarter represented the first three months of the drug's commercial launch. The drug is sold in the U.S. by Forest Labs under a partner with Ironwood.

Neither company provided an explanation for Linzess' disappointing first-quarter sales, but J.P. Morgan analyst Geoff Meacham, in an email to clients, blamed inventory write-downs from the fourth quarter of last year.

Forest Labs said it expects Linzess sales of $170 million for its 2014 fiscal year which ends March 31, 2014. J.P. Morgan's Meacham says the Linzess guidance is higher than the current consensus of approximately $155 million.

-- Reported by Adam Feuerstein in Boston.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
FRX $99.00 -0.77%
IRWD $13.84 -0.57%
AAPL $128.99 0.03%
FB $78.94 -0.06%
GOOG $543.79 1.10%

Markets

DOW 18,098.39 +74.33 0.41%
S&P 500 2,117.48 +9.19 0.44%
NASDAQ 5,025.2930 +19.9020 0.40%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs