Cyanotech Corp Reports Strong Sales Growth Amidst Financial Challenges in FY 2025

Cyanotech Corp reported a 5% growth in net sales for FY25, with bulk spirulina and Bulkasa Xanthin sales growing by 53% and 74% respectively. The company achieved an 11% improvement in expenses due to production efficiencies and tight inventory management. However, net loss for the fiscal year was $3.2 million, and cash reserves decreased to $257,000. Gross profit margin improved to 28.4% from 25.8% the previous year.

Ironwood Pharmaceuticals, Inc. (Nasdaq: IRWD) has announced the reiteration of its full-year 2025 LINZESS U.S. net sales and total Ironwood revenue guidance, while also raising its adjusted EBITDA guidance. The company reported a 5% growth in net sales for FY25, with bulk spirulina and Bulkasa Xanthin sales growing by 53% and 74% respectively. The company achieved an 11% improvement in expenses due to production efficiencies and tight inventory management. However, net loss for the fiscal year was $3.2 million, and cash reserves decreased to $257,000. Gross profit margin improved to 28.4% from 25.8% the previous year.

Ironwood's LINZESS U.S. net sales for the first quarter of 2025 were $138.5 million, representing a 46% decrease compared to the first quarter of 2024. This decrease was attributed to a change in AbbVie's estimate of gross-to-net rebate reserves, which is expected to impact the quarterly phasing of LINZESS U.S. net sales but not the full-year results. Despite this, the company reported continued strong prescription demand growth of 8% year-over-year, which was offset by anticipated pricing headwinds and changes in rebate estimates.

The company has raised its full-year 2025 adjusted EBITDA guidance to greater than $105 million. This increase is due to the company's decision to shift its focus from apraglutide commercial launch planning investments to the confirmatory Phase 3 trial, consistent with recent FDA feedback. Ironwood's adjusted EBITDA is calculated by subtracting restructuring expenses, net interest expense, income taxes, depreciation and amortization, and stock-based compensation from GAAP net income.

Ironwood's 2025 financial guidance, as updated in April 2025, includes U.S. LINZESS net sales of $800-$850 million and total revenue of $260-$290 million. The company's adjusted EBITDA guidance has been raised to greater than $105 million. These figures reflect the company's strategic reorganization and the impact of changes in gross-to-net rebate reserves.

Ironwood Pharmaceuticals is a biotechnology company developing and commercializing life-changing therapies for people living with gastrointestinal (GI) and rare diseases. The company is advancing apraglutide, a next-generation, long-acting synthetic GLP-2 analog being developed for short bowel syndrome patients who are dependent on parenteral support. Ironwood is also a pioneer in the development of LINZESS® (linaclotide), the U.S. branded prescription market leader for adults with irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation (CIC).

References:
[1] https://www.businesswire.com/news/home/20250425289111/en/Ironwood-Pharmaceuticals-Reiterates-Full-Year-2025-LINZESS-U.S.-Net-Sales-Guidance-and-Raises-Adjusted-EBITDA-Guidance