IRWD: LINZESS Medicare net price to be $136 from 2027

Rhea-AI Filing Summary

Ironwood Pharmaceuticals reported that the U.S. Department of Health and Human Services has set the Medicare “Maximum Fair Price” for LINZESS (linaclotide) at $136 for a 30-day equivalent supply. This Maximum Fair Price will become the new Medicare net price starting January 1, 2027 under the Inflation Reduction Act of 2022.

The company states that this revised price for LINZESS is in line with its expectations, indicating the decision aligns with its planning around the product’s U.S. Medicare pricing.

Insights

Healthcare policy and biopharma pricing analyst

Medicare sets a $136 Maximum Fair Price for LINZESS, matching company expectations.

The U.S. Department of Health and Human Services has established a Medicare “Maximum Fair Price” of $136 for a 30-day equivalent supply of LINZESS (linaclotide). This price will serve as the new Medicare net price beginning on January 1, 2027 under the Inflation Reduction Act of 2022, which introduced government price setting for selected drugs.

LINZESS is a key product for Ironwood Pharmaceuticals, so formal confirmation of the Medicare price is an important data point for long-term revenue planning. The company notes that the revised Maximum Fair Price is “in line with the expectations” of Ironwood Pharmaceuticals, suggesting the outcome aligns with its internal assumptions.

Because the price is consistent with company expectations, this announcement mainly provides clarity rather than a surprise revaluation. Future financial reports around and after 2027 will reflect how this Medicare net price interacts with overall LINZESS sales across payer channels.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report Pursuant to 

Section 13 or 15(d) of the 

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):

November 25, 2025

IRONWOOD PHARMACEUTICALS, INC.

(Exact name of registrant as specified in its charter)

Delaware		001-34620		04-3404176
(State or other jurisdiction				(I.R.S. Employer
of incorporation)		(Commission File Number)		Identification Number)

100 Summer Street, Suite 2300
Boston, Massachusetts				02110
(Address of principal
executive offices)				(Zip code)

(617) 621-7722

(Registrant’s telephone number,

including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, $0.001 par value	IRWD	Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 8.01 Other Events.

On November 25, 2025, the U.S. Department of Health and Human Services released the “Maximum Fair Price” (“MFP”) for LINZESS® (linaclotide), which was selected in the most recent round of government price setting as part of the Inflation Reduction Act of 2022. The MFP for a 30-day equivalent supply of LINZESS, which will become the new Medicare net price as of January 1, 2027, is set to $136. The revised MFP for LINZESS is in line with the expectations of Ironwood Pharmaceuticals, Inc.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Ironwood Pharmaceuticals, Inc.
Dated: November 26, 2025	By:	/s/ Gregory Martini
		Name: Gregory Martini
		Title: Senior Vice President, Chief Financial Officer

FAQ

What pricing decision did HHS make affecting Ironwood Pharmaceuticals (IRWD)?

The U.S. Department of Health and Human Services set the Medicare “Maximum Fair Price” for LINZESS (linaclotide) at $136 for a 30-day equivalent supply.

When will the new LINZESS Medicare Maximum Fair Price take effect for IRWD?

The $136 Medicare “Maximum Fair Price” for LINZESS will become the new Medicare net price starting on January 1, 2027.

How does the new LINZESS Maximum Fair Price align with Ironwood Pharmaceuticals’ expectations?

Ironwood Pharmaceuticals states that the revised Medicare “Maximum Fair Price” for LINZESS is in line with the company’s expectations.

Which law enabled the government price setting for LINZESS impacting IRWD?

LINZESS was selected in a round of government price setting conducted under the Inflation Reduction Act of 2022.

Which Ironwood Pharmaceuticals product is affected by the new Medicare price?

The pricing decision applies to LINZESS (linaclotide), a product marketed by Ironwood Pharmaceuticals.

Does the new LINZESS Medicare price apply to a specific supply duration?

Yes. The Medicare “Maximum Fair Price” of $136 applies to a 30-day equivalent supply of LINZESS.