Ironwood Pharmaceuticals, Inc. IRWD

Competitive advantage analysis · healthcare

Corporate Default
Overall moat score
71/100
Moderate

About Ironwood Pharmaceuticals, Inc.

Ironwood Pharmaceuticals, Inc., a biotechnology company, focuses on the development and commercialization of therapies for gastrointestinal (GI) and rare diseases in the United States and internationally. It markets linaclotide, a guanylate cyclase type-C (GC-C) agonist for the treatment of adults suffering from irritable bowel syndrome with constipation or chronic idiopathic constipation, as well as for pediatric patients suffering from functional … Full IRWD analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 99.4% (top 6%) and operating margin at 33.3% (top 2%) indicate strong pricing power.
  • Cost Leadership Position Operating margin at 97.5th percentile with strong OpEx control demonstrates cost leadership.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.20), raising questions about short-term obligations.
  • Volatile Margins Suggest Cyclicality Margin volatility is high (stability score 0.28), suggesting cyclical exposure or competitive pressure.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
69

Where IRWD ranks in Drug Manufacturers - Specialty & Generic

Ironwood Pharmaceuticals, Inc. ranks #11 of 91 scored companies in Drug Manufacturers - Specialty & Generic by moat score — the top 12%. The widest moat in the group is Zoetis Inc. (ZTS) at 85/100.

Moat scores for companies ranked near IRWD in Drug Manufacturers - Specialty & Generic
# Company Moat score Rating
7 Haleon plc HLN 75/100 Moderate
8 Kamada Ltd. KMDA 74/100 Moderate
9 Collegium Pharmaceutical, Inc. COLL 73/100 Moderate
10 Lantheus Holdings, Inc. LNTH 73/100 Moderate
11 Ironwood Pharmaceuticals, Inc. IRWD 71/100 Moderate
12 ANI Pharmaceuticals, Inc. ANIP 69/100 Moderate
13 Phibro Animal Health Corporatio PAHC 69/100 Moderate
14 Bausch Health Companies Inc. BHC 68/100 Moderate
15 Amneal Pharmaceuticals, Inc. AMRX 68/100 Moderate

See every Pharma / Mature Biotech company ranked by moat score →

How IRWD scores on the Corporate Default defenses

Pricing Power

Score 69 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 88 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 86 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 71 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 51 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 64 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding IRWD's moat

What is Ironwood Pharmaceuticals, Inc.'s moat score?

Ironwood Pharmaceuticals, Inc. (IRWD) scores 71 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #11 of 91 scored companies in Drug Manufacturers - Specialty & Generic, the top 12%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 90 companies in Drug Manufacturers - Specialty & Generic. Its strongest defense is Cost Advantage (88/100) and its weakest is Resilience (51/100).

How does Ironwood Pharmaceuticals, Inc. compare with other Drug Manufacturers - Specialty & Generic companies?

Ironwood Pharmaceuticals, Inc. ranks #11 of 91 scored companies in Drug Manufacturers - Specialty & Generic by moat score. The widest moat in Drug Manufacturers - Specialty & Generic is Zoetis Inc. (ZTS) at 85/100. The companies ranked closest are Lantheus Holdings, Inc. (LNTH) at 73 just above it and ANI Pharmaceuticals, Inc. (ANIP) at 69 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 90 companies in Drug Manufacturers - Specialty & Generic. The defenses are then weighted to produce the overall score out of 100.

Why is Ironwood Pharmaceuticals, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Ironwood Pharmaceuticals, Inc.?

The Corporate Default template measures 6 defenses, and IRWD scores: Pricing Power (69), Cost Advantage (88), Customer Stickiness (86), Capital Efficiency (71), Resilience (51), Scale & Market Position (64). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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