aibioIronwood Pharmaceuticals regains compliance with Nasdaq $1.00 bid price rule
Tickers IRWD
Nasdaq told Ironwood on August 29, 2025 that the matter is closed. The company had received a deficiency notice on May 28, 2025.
Key facts
- Company
- Ironwood Pharmaceuticals, Inc. (NASDAQ: IRWD)
- News type
- Listings
- Primary source
- Ironwood Pharmaceuticals, Inc. 8-K (2025-09-03)
The Nasdaq letter
Ironwood Pharmaceuticals, Inc. (Nasdaq: IRWD) said in an 8-K dated September 3, 2025 that it received a letter on August 29, 2025 from the Listing Qualifications Department of the Nasdaq Stock Market LLC. The letter said the company has regained compliance with the minimum bid price requirement in Nasdaq Listing Rule 5450(a)(1) for continued inclusion on the Nasdaq Global Select Market. The 8-K was signed by Gregory Martini, Senior Vice President and Chief Financial Officer.
The problem began earlier in the year. As the company disclosed in an 8-K filed on June 3, 2025, Nasdaq sent a written notice on May 28, 2025 saying that the company's Class A common stock, par value $0.001 per share, had failed to meet the $1.00 per share minimum bid price requirement. To regain compliance, the stock had to keep a closing bid price of $1.00 per share or more for at least 10 consecutive business days. The company said that requirement was met and the matter is now closed.
The 8-K is short. It does not give the closing prices, the dates of the 10-day run, or any step the company took to lift the price, such as a reverse stock split. It does not say whether any other listing standard is in question.
The business behind the stock
Ironwood describes itself as a biotechnology company developing and commercializing therapies for people with gastrointestinal and rare diseases. Its commercial product is LINZESS (linaclotide), the first product approved by the FDA in a class of GI medicines called guanylate cyclase type C agonists. It is indicated for adults with irritable bowel syndrome with constipation or chronic idiopathic constipation, and for pediatric patients ages 6 to 17 with functional constipation. Linaclotide is partnered with AbbVie in the United States and all countries other than China and Japan, with AstraZeneca in China, and with Astellas in Japan.
The annual report for 2024, filed March 31, 2025, shows that the main product was under pressure. Ironwood recognized $340.4 million in collaborative arrangements revenue from LINZESS sales in the United States in 2024, a decrease of $90.1 million from 2023. It attributed the decrease mainly to a lower share of net profits, driven by lower net price, including a $43.0 million reduction to collaboration revenue from changes in estimates of sales reserves and allowances tied to governmental and contractual rebates. Higher prescription demand offset part of it.
The pipeline
The company's main development bet is apraglutide, a long-acting peptide analog of glucagon-like peptide-2 that it gained through the June 2023 acquisition of VectivBio Holding AG. It is aimed at short bowel syndrome patients who depend on parenteral support. In February 2024, the company announced positive topline results from its pivotal Phase III trial, STARS, which tested once-weekly subcutaneous apraglutide in adults with short bowel syndrome with intestinal failure. In January 2025, it began a rolling new drug application to the FDA, and it plans to submit marketing applications to other regulators. An open-label extension study, STARS Extend, is assessing safety.
Apraglutide has also been studied in steroid-refractory gastrointestinal acute graft versus host disease. In March 2024, the company announced positive primary results up to Day 91 in its Phase II exploratory trial, STARGAZE, which was designed to evaluate safety and tolerability.
Two other programs have been cut back. In September 2024, Ironwood decided not to exercise its option to license CNP-104, a potential treatment for primary biliary cholangitis, from COUR Pharmaceutical Development Company, after receiving topline data from COUR's Phase II study. The collaboration agreement ended, and Ironwood has no rights or obligations related to CNP-104. For IW-3300, a GC-C agonist for visceral pain conditions such as interstitial cystitis and endometriosis, the company decided in September 2024 to end further recruitment in its Phase II proof of concept study in interstitial cystitis and to analyze the data once enrolled patients finish the 12-week assessment.
The company lists three core priorities: maximize LINZESS, advance its GI pipeline, and deliver sustained profits and cash flow.