Ironwood Pharmaceuticals (NASDAQ:IRWD)
- IRWD starting TV Ads on several networks
- Ads target awareness so patients can self-identify IBS-C
- Online campaign accompanies TV push
TV Ads for Linzess
Ironwood issued a press release on April 10th announcing that their Direct to consumer campaign started with TV ads on ABC the previous night. TV ads will trigger Top-10 shows such as "The Voice". "Modern Family" and "NCIS". The campaign also includes online advertising and patient brochures in doctors' offices. This DTC launch should bring more focus to the weekly number of prescriptions written. We expect to hear more color from IRWD on their Q1 conference call on April 29th (8:30 AM)
Consumer Push follows Over 1 year of Provider Education
Ironwood's consumer push campaign comes more than one year after the company and partner Forrest Laboratories (NYSE:FRX) launched their constipation drug Linzess. Until now the companies have focused on educating providers about Linzess, and establishing the brand as one that primary care doctors feel comfortable writing prescriptions. Now that this provider education phase has matured, the companies are turning to consumer awareness and "push" messaging. Making potential patients aware of the drug and sending them in to their doctors.
Zelnorm as Guide
Investors will be watching to see Linzess sales ramp up as the direct to consumer (DTC) campaign gets rolling. As a guide, when Zelnorm initiated a DTC campaign, prescriptions for that drug increased 3-fold over about 12 months.
Here's a throwback to the Zelnorm ads:
note: we have no connection with this youtube video.
While Zelnorm was eventually pulled from the market due to harmful side effects, Linzess does not act systemically. It stays within the gut and does its work there. Therefore, doctors should feel more comfortable prescribing this drug when their patients start asking for it.
Here's the Linzess ad for comparison:
Earnings Call April 29th
On Tuesday April 29th Ironwood will hold it's Q1 earnings call. We do not expect the company to have much to say in the way of new guidance since the TV commercials just launched. The first week of May is digestive Disease week. this is the largest scientific meeting for digestive diseases and many of the companies in the gastric disease space tend to bunch up announcements around this conference. The start of the DTC campaigns ahead of the conference means that prescribers may be getting inquiries from patients by the time DDW rolls around. That's a good strategy on IRWD's part.
