Ironwood (IRWD) Skyrockets 23% as Govt Price for Linzess Falls Within Expectations

We recently published 10 Small Stocks with Mighty Gains. Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is one of the top-performing stocks on Wednesday.

Ironwood Pharmaceuticals soared by 23.32 percent on Wednesday to end at $3.86 apiece as investors cheered the new price set by the Health Department for its bowel treatment, which fell in line with its expectations.

In a regulatory filing, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) said that the US Department of Health and Human Services released the maximum fair price (MFP) for Linzess to $136.

“The revised MFP for LINZESS is in line with the expectations of Ironwood Pharmaceuticals, Inc.,” it said. The new price will take effect on January 1, 2027.

Linzess was among the treatments selected in the most recent round of government price setting as part of the Inflation Reduction Act of 2022, in a bid to make healthcare costs more affordable to American senior citizens.

According to the Centers for Medicare and Medicaid Services (CMS), the lower Medicare would help save the government billions of dollars in healthcare costs, at least $12 billion if it started in 2024.

In recent news, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) said it expanded its net income by 1,013 percent in the third quarter of the year to $40.08 million from $3.6 million in the same period last year.

Revenues jumped by 33.27 percent to $122.06 million from $91.59 million year-on-year, thanks to $119.6 million of US revenues from Lizness.

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Disclosure: None. This article is originally published at Insider Monkey.