Ironwood Pharmaceuticals Inc. (IRWD) stock showed moderate response to the news of FDA approval of its oral fixed dose combination drug, Duzallo. The drug, designed to treat hyperuricemia in patients with uncontrolled gout, is a derivative of the company’s other product Zurampic and allopurinol, which was launched in October last year. Duzallo is the first of its kind as it addressed the two causes behind hyperuricemia in gout, which are over-production and under-excretion of serum uric acid, using a single pill. While the uncontrolled gout market has strong potential ahead as the company estimates its peak US sales potential to be more than $300 million, it is important to note that Zurampic has shown a rather lethargic performance so far. The drug clocked merely $300,000 during the first quarter of the year, which combined with the declining performance shown by the company’s star product Linzess becomes a cause of worry. However, with the approval of Duzallo, the company now has three full blown products in its portfolio, which will likely help in generating a steady revenue stream to help fund the company’s ongoing business.
Source - company website
