Ironwood Pharmaceuticals Reports Fourth Quarter and Full Year 2024 Results; Achieves 2024 Financial Guidance - Announced positive data from open-label extension study demonstrating an increased numb

Ironwood Pharmaceuticals

Reports Fourth Quarter and Full Year 2024 Results; Achieves 2024 Financial Guidance

positive data from open-label extension study demonstrating an increased

number of patients on apraglutide achieving enteral autonomy over time -

rolling NDA submission; on track to be completed in Q3 2025 -

(Iinaclotide) EUTRx prescription demand growth of 11% for full-year 2024 year-over-year -

Ironwood revenue of $351 million, GAAP net income of $2 million and adjusted EBITDA of $101 million -

BOSTON, Mass., February 27,

2025 - Ironwood Pharmaceuticals, Inc. (Nasdaq: IRWD), a biotechnology company developing and commercializing life-changing

therapies for people living with gastrointestinal (GI) and rare diseases, today reported its fourth quarter and full year 2024 results

and recent business performance.

"We believe that 2025 marks the

beginning of a transformation for Ironwood that will lay the foundation for growth, long-term value creation, and the delivery of new

medicines to rare disease and GI patients in need. We have taken strategic actions to position our organization for success, including

streamlining our business operations and advancing the clinical development of apraglutide, while maintaining disciplined financial stewardship

to drive cash flows, pay down our debt, and further strengthen our balance sheet," said Tom McCourt, chief executive officer of

initiated the rolling NDA submission for apraglutide, and we are working with urgency to complete the submission and prepare for potential

launch. Our confidence in apraglutide continues to grow, especially in light of the data we shared in January from the open-label

extension study. These results show a continued increase in clinical benefit over time, with 27 total apraglutide-dosed patients achieving

enteral autonomy. Given these compelling new long-term data, we plan to include additional extension study data in our NDA to deliver

a more robust, clinically differentiated, and comprehensive submission package. If approved, apraglutide would be the first and only

once-weekly GLP-2 therapy, reinforcing its potential to become a blockbuster drug and significantly expand treatment options for SBS

Fourth Quarter and Full Year 2024

Financial Highlights1

(in thousands, except for per share

1 Refer to the Reconciliation

of GAAP Results to Non-GAAP Financial Measures table and to the Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA table at

the end of this press release. Refer to Non-GAAP Financial Measures for additional information.

2 Figures presented for the

twelve months ended December 31, 2023 include a one-time charge of approximately $1.1 billion related to acquired in-process research

and development from the acquisition of VectivBio in the second quarter of 2023.

Fourth Quarter and Full Year 2024

Corporate Highlights

Apraglutide in SBS Advancing Through

Regulatory Submission and Review

Continued Strong Demand Growth for

Streamlined Organization Positioned

for Long-Term Success

Fourth Quarter and Full Year 2024

collaborative arrangements revenue includes reimbursement from AbbVie for a portion of Ironwood's commercial expenses related to

sales of LINZESS in the U.S. The FY2025 total revenue guidance accounts for the impact of the reduction to Ironwood's commercial

expenses and corresponding reimbursement from AbbVie due to Ironwood's strategic reorganization.

2 Adjusted EBITDA is

calculated by subtracting restructuring expenses, net interest expense, income taxes, depreciation and amortization and stock-based compensation,

from GAAP net income. The exclusion of stock-based compensation from Adjusted EBITDA represents an update to our definition of Adjusted

EBITDA, effective in the first quarter of 2025. For purposes of this guidance, we have assumed that Ironwood will not incur material

expenses related to business development activities in 2025. 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

certainty 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 substitute 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.

Non-GAAP Financial Measures

Ironwood presents non-GAAP net income

(loss) and non-GAAP net income (loss) per share to exclude the impact, net of tax effects, of net gains and losses on derivatives related

to Ironwood's 2022 Convertible Notes that are required to be marked-to-market, amortization of acquired intangible assets, restructuring

expenses, and acquisition-related costs. Non-GAAP adjustments are further detailed below:

Ironwood also presents adjusted EBITDA,

a non-GAAP measure, as well as guidance on adjusted EBITDA. Adjusted EBITDA is calculated by subtracting mark-to-market adjustments on

derivatives related to Ironwood's 2022 Convertible Notes, restructuring expenses, net interest expense, income taxes, depreciation

and amortization, and acquisition-related costs from GAAP net income. Beginning in the first quarter of 2025, adjusted EBITDA will be

calculated by also subtracting stock-based compensation expense. The adjustments are made on a similar basis as described above related

to non-GAAP net income (loss), as applicable.

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 substitute

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. For a reconciliation of non-GAAP net income (loss)

and non-GAAP net income (loss) per share to GAAP net income and GAAP net income per share, respectively, and for a reconciliation of

adjusted EBITDA to GAAP net income, please refer to the tables at the end of this press release.

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 certainty 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.

Conference Call Information

Ironwood will host a conference call

and webcast at 8:30 a.m. Eastern Time on Thursday, February 27, 2025 to discuss its fourth quarter and full year 2024 results

and recent business activities. Individuals interested in participating in the call should dial (888) 596-4144 (U.S. and Canada) or (646)

968-2525 (international) using conference ID number and event passcode 2530602. To access the webcast, please visit the Investors section

of Ironwood's website at www.ironwoodpharma.com. The call will be available for replay via telephone starting Thursday,

February 27, 2025, at approximately 11:30 a.m. Eastern Time, running through 11:59 p.m. Eastern Time on Thursday, March 13,

2025. To listen to the replay, dial (800) 770-2030 (U.S. and Canada) or (609) 800-9909 (international) using conference ID number 2530602.

The archived webcast will be available on Ironwood's website for 1 year beginning approximately one hour after the call has completed.

About Ironwood Pharmaceuticals

Ironwood Pharmaceuticals

(Nasdaq: IRWD) is a biotechnology company developing and commercializing life-changing therapies for people living with gastrointestinal

(GI) and rare diseases. Ironwood is advancing apraglutide, a next-generation, long-acting synthetic GLP-2 analog being developed for

short bowel syndrome patients who are dependent on parenteral support. In addition, Ironwood has been a pioneer in the development

of LINZESS (linaclotide), the U.S. branded prescription market leader for adults with irritable bowel syndrome with constipation

(IBS-C) or chronic idiopathic constipation (CIC). LINZESS is also approved for the treatment of functional constipation in pediatric

patients ages 6-17 years old. Building upon our history of innovation, we keep patients at the heart of our R&D and commercialization

efforts to reduce the burden of diseases and address significant unmet needs.

Founded in 1998, Ironwood

Pharmaceuticals is headquartered in Boston, Massachusetts, with a site in Basel, Switzerland.