Ironwood Pharmaceuticals Inc. (IRWD) had itself quite a Friday. The gastrointestinal-focused biotech saw its shares rocket 34.08% to $4.51, riding a wave of trading volume that tells you everything about investor enthusiasm. We're talking 38.35 million shares changing hands compared to the typical 2.36 million on an average day.

The catalyst? Ironwood rolled out its financial roadmap for 2026, and Wall Street apparently liked what it saw.

The 2026 Vision

Here's what the company is projecting for next year: Linzess US net sales between $1.125 billion and $1.175 billion, total revenue in the $450 million to $475 million range, and adjusted EBITDA topping $300 million. For context, those Linzess numbers represent a significant jump from 2025's expected $860 million to $890 million in US sales.

Ironwood reaffirmed its 2025 guidance, expecting revenue between $290 million and $310 million with adjusted EBITDA exceeding $135 million. The company closed the fourth quarter of 2025 with over $200 million in cash and equivalents, giving it a comfortable cushion.

A Counterintuitive Pricing Strategy

Here's where things get interesting. Ironwood actually lowered the Linzess list price effective January 1, 2026. You'd think lower prices mean less revenue, right? Not quite. CEO Tom McCourt explained the move was "in response to evolving health care dynamics and to support ongoing patient access," but there's a financial upside too.

"We expect higher net sales in 2026 for LINZESS year-over-year, specifically driven by the elimination of the inflationary component of statutory required rebates across channels, including Medicaid, due to the decrease in list price," McCourt said Friday. Translation: by reducing the sticker price, they dodge certain rebate obligations that were eating into actual revenue.

Pipeline Progress

Beyond Linzess, Ironwood is advancing apraglutide for treating short bowel syndrome with intestinal failure. The company met with the FDA in the fourth quarter to align on a confirmatory Phase 3 trial design and expects to kick off that trial in the first half of 2026.

"As we close 2025, we are on track to achieve the low-end of our full-year LINZESS U.S. net sales and total revenue guidance ranges," McCourt noted. "In 2026, we remain focused on our core priorities of maximizing LINZESS, advancing apraglutide, and delivering sustained profits and cash flows."

With shares approaching their 52-week high of $4.77, Ironwood investors are betting the company can deliver on these ambitious projections.