IRONWOOD PHARMACEUTICALS INC

Previous wording

LINZESS® (linaclotide), our commercial product, is the first product approved by the United States Food and Drug Administration, or U.S. FDA, in a class of GI medicines called guanylate cyclase type C agonists, or GC-C agonists, and is indicated, in the U.S., for the treatment of irritable bowel syndrome with constipation, or IBS-C, in adults and pediatric patients 7 years of age and older, chronic idiopathic constipation, or CIC, in adults, and functional constipation, or FC, in pediatric patients ages 2-17 years-old. LINZESS is also available for the treatment of adults with IBS-C or CIC in Mexico and Kingdom of Saudi Arabia, adults with IBS-C or chronic constipation in Japan, and adults with IBS-C in China. Linaclotide is available under the trademarked name CONSTELLA®for the treatment of adults with IBS-C or CIC and pediatric patients ages 6-17 years old with FC in Canada, and to adults with IBS-C in certain European countries.

Current wording

constipation, or FC, in pediatric patients ages 2-17 years-old. LINZESS is also available for the treatment of adults with IBS-C or CIC in Mexico and the Kingdom of Saudi Arabia, adults with IBS-C or chronic constipation in Japan, and adults with IBS-C in China. Linaclotide is available under the trademarked name CONSTELLA®for the treatment of adults with IBS-C or CIC and pediatric patients ages 6-17 years-old with FC in Canada, and to adults with IBS-C in certain European countries.

Previous wording

We are also advancing apraglutide, a next-generation, synthetic long-acting peptide analog of glucagon-like peptide-2, or GLP-2, for short bowel syndrome, or SBS, patients who are dependent on parenteral support, or PS. In February 2024, we announced positive topline results from our pivotal Phase III clinical trial, STARS, which evaluated the efficacy and safety of once-weekly subcutaneous apraglutide in reducing parenteral support dependency in adult patients with short bowel syndrome with intestinal failure, or SBS-IF. We are also conducting an open-label extension study, STARS Extend, to further assess the safety of apraglutide in adult patients with SBS-IF. In April 2025, we announced that, based on discussions with the U.S. FDA, a confirmatory Phase III clinical trial is needed to seek approval of a new drug application or NDA, for apraglutide for patients with SBS-IF who are dependent on PS. We subsequently met with the U.S. FDA and aligned on key design elements of a confirmatory Phase III clinical trial, STARS-2, of apraglutide. STARS-2 is a 24-week global, randomized, double-blind, placebo-controlled trial. The clinical trial will consist of a primary endpoint measuring relative change from baseline in actual weekly PS as well as additional key secondary endpoints. In June 2026, we initiated STARS-2 and are actively recruiting patients.

Current wording

We are also advancing apraglutide, a next-generation, synthetic long-acting peptide analog of glucagon-like peptide-2 for short bowel syndrome, or SBS, patients who are dependent on parenteral support, or PS. In February 2024, we announced positive topline results from our pivotal Phase III clinical trial, STARS, which evaluated the efficacy and safety of once-weekly subcutaneous apraglutide in reducing parenteral support dependency in adult patients with short bowel syndrome with intestinal failure, or SBS-IF. We are also conducting an open-label extension study, STARS Extend, to further assess the safety of apraglutide in adult patients with SBS-IF. In April 2025, we announced that, based on discussions with the U.S. FDA, a confirmatory Phase III clinical trial is needed to seek approval of a new drug application or NDA, for apraglutide for patients with SBS-IF who are dependent on PS. We subsequently met with the U.S. FDA and aligned on key design elements of a confirmatory Phase III clinical trial, STARS-2, of apraglutide. STARS-2 is a 24-week global, randomized, double-blind, placebo-controlled trial. The clinical trial will consist of a primary endpoint measuring relative change from baseline in actual weekly PS as well as additional key secondary endpoints. In June 2026, we initiated STARS-2 and are actively recruiting patients. Subject to the results of STARS-2, we plan to file for regulatory approval in 2029.

Previous wording

months ended June 30, 2025, we recorded net income of $23.6 million and a net loss of $13.8 million, respectively. As of June 30, 2026, we had an accumulated deficit of approximately $1.6 billion. We are unable to predict the extent of any future losses or guarantee that our company will be able to generate and maintain positive cash flows.

Current wording

To date, we have dedicated a majority of our activities to the research, development and commercialization of linaclotide, as well as other research and development programs, including apraglutide. For the three and nine months ended September 30, 2026, we recorded net income of $59.8 million and $151.9 million, respectively. For the three and nine months ended September 30, 2025, we recorded net income of $40.1 million and $26.3 million, respectively. As of September 30, 2026, we had an accumulated deficit of approximately $1.5 billion. We are unable to predict the extent of any future losses or guarantee that our company will be able to generate and maintain positive cash flows.

Previous wording

Research and Development Expenses. The core of our research and development strategy is to leverage our demonstrated expertise and capabilities in GI and rare diseases to bring medicines to patients. Research and development expenses consist of expenses incurred in connection with the research into and development of products and product candidates. These expenses consist primarily of compensation, benefits and other employee-related expenses, research and development related facility costs, third-party contract costs relating to nonclinical study and clinical trial activities, development of manufacturing processes, regulatory registration of third-party manufacturing facilities, and licensing fees for our product candidates.

Current wording

and product candidates. These expenses consist primarily of compensation, benefits and other employee-related expenses, research and development related facility costs, third-party contract costs relating to nonclinical study and clinical trial activities, development of manufacturing processes, regulatory registration of third-party manufacturing facilities, and licensing fees for our product candidates.

Previous wording

Apraglutide. In February 2024, we announced positive topline results from our pivotal Phase III clinical trial, STARS, which evaluated the efficacy and safety of once-weekly subcutaneous apraglutide in reducing PS dependency in adult patients with SBS-IF. SBS-IF, a rare and severe organ failure condition in which patients are dependent on PS, affects an estimated 18,000 adult patients in the U.S., Europe, and Japan. We are also conducting an open-label extension study, STARS Extend, to further assess the safety of apraglutide in adult patients with SBS-IF. In April 2025, we announced that, based on discussions with the U.S. FDA, a confirmatory Phase III clinical trial is needed to seek approval of an NDA for apraglutide for patients with SBS-IF who are dependent on PS. We subsequently met with the U.S. FDA and aligned on key design elements of a confirmatory Phase III clinical trial, STARS-2, of apraglutide. In June 2026, we initiated STARS-2 and are actively recruiting patients.

Current wording

Apraglutide. In February 2024, we announced positive topline results from our pivotal Phase III clinical trial, STARS, which evaluated the efficacy and safety of once-weekly subcutaneous apraglutide in reducing PS dependency in adult patients with SBS-IF. SBS-IF, a rare and severe organ failure condition in which patients are dependent on PS, affects an estimated 18,000 adult patients in the U.S., Europe, and Japan. We are also conducting an open-label extension study, STARS Extend, to further assess the safety of apraglutide in adult patients with SBS-IF. In April 2025, we announced that, based on discussions with the U.S. FDA, a confirmatory Phase III clinical trial is needed to seek approval of an NDA for apraglutide for patients with SBS-IF who are dependent on PS. We subsequently met with the U.S. FDA and aligned on key design elements of a confirmatory Phase III clinical trial, STARS-2, of apraglutide. In June 2026, we initiated STARS-2 and are actively recruiting patients. Subject to the results of STARS-2, we plan to file for regulatory approval in 2029.

Previous wording

CNP-104. Through a collaboration and license option agreement, or the COUR Collaboration Agreement, we and COUR Pharmaceutical Development Company, Inc., or COUR, were developing CNP-104 for the treatment of PBC, a rare autoimmune disease targeting the liver. In the third quarter of 2024, we received from COUR the topline data from COUR’s Phase II Clinical study for the treatment of PBC. In September 2024, we notified COUR of our decision not to exercise the option to acquire an exclusive license to CNP-104. As a result, the COUR Collaboration Agreement has terminated, and we retain no rights and have no obligations related to CNP-104.

Current wording

CNP-104. Through a collaboration and license option agreement, or the COUR Collaboration Agreement, we and COUR Pharmaceutical Development Company, Inc., or COUR, were developing CNP-104 for the treatment of primary biliary cholangitis, or PBC, a rare autoimmune disease targeting the liver. In the third quarter of 2024, we received from COUR the topline data from COUR’s Phase II clinical study for the treatment of PBC. In September 2024, we notified COUR of our decision not to exercise the option to acquire an exclusive license to CNP-104. As a result, the COUR Collaboration Agreement has terminated, and we retain no rights and have no obligations related to CNP-104.

Previous wording

The following table sets forth our research and development expenses related to our product pipeline for the three and six months ended June 30, 2026 and 2025, respectively. These expenses relate primarily to compensation, benefits and other employee-related expenses and external costs associated with nonclinical studies and clinical trial costs for our product candidates. We allocate costs related to facilities, depreciation, share-based compensation, research and development support services and certain other costs directly to programs.

Current wording

The following table sets forth our research and development expenses related to our product pipeline for the three and nine months ended September 30, 2026 and 2025, respectively. These expenses relate primarily to compensation, benefits and other employee-related expenses and external costs associated with nonclinical studies and clinical trial costs for our product candidates. We allocate costs related to facilities, depreciation, share-based compensation, research and development support services and certain other costs directly to programs.

Previous wording

Restructuring Expenses.Restructuring expenses primarily pertain to a workforce reduction in January 2025 consisting primarily of field-based sales employees. The workforce reduction and restructuring initiatives are more fully described in Note 11,Workforce Reductions and Restructuring, to our condensed consolidated financial statements appearing elsewhere in this Quarterly Report on Form 10-Q.

Current wording

Restructuring Expenses.Restructuring expenses primarily pertain to a workforce reduction in January 2025 consisting primarily of field-based sales employees and August 2025 consisting of certain positions supporting apraglutide commercialization efforts. The workforce reduction and restructuring initiatives are more fully described in Note 11,Workforce Reductions and Restructuring, to our condensed consolidated financial statements appearing elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

During the three and six months ended June 30, 2026, there were no material changes to our critical accounting policies as reported in our 2025 Annual Report on Form 10-K.

Current wording

During the three and nine months ended September 30, 2026, there were no material changes to our critical accounting policies as reported in our 2025 Annual Report on Form 10-K.

Previous wording

Collaborative arrangements revenue. The increase in collaborative arrangements revenue of$27.8 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was primarily related to a $24.4 million increase in our share of net profits from the sale of LINZESS in the U.S., which was driven primarily by increased net price and increased prescription demand.

Current wording

Collaborative arrangements revenue. Collaborative arrangements revenue increased by$11.0 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to a $10.3 million increase in our share of net profits from the sale of LINZESS in the U.S., which was driven primarily by increased prescription demand, partially offset by net price.

Previous wording

The increase in collaborative arrangements revenue of $93.2 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily related to a $89.8 million increase in our share of net profits from the sale of LINZESS in the U.S., which was driven primarily byincreased net price and increased prescription demand, as well as inventory channel fluctuations.

Current wording

Collaborative arrangements revenue increased by $104.1 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to a $100.1 million increase in our share of net profits from the sale of LINZESS in the U.S., which was driven primarily byincreased net price and increased prescription demand, as well as inventory channel fluctuations.

Previous wording

The decrease in research and development expenses of $6.4 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily related to a $3.0 million decrease in external costs associated with the IW-3300 development program and a $2.3 million decrease in external costs associated with the linaclotide program.

Current wording

Research and development. Research and development expenses increased by $5.9 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to a $5.6 million increase in external costs associated with the apraglutide program and a $1.4 million increase in compensation, benefits, and other employee-related expenses, partially offset by a $1.3 million decrease in external costs associated with the linaclotide program.

Previous wording

Research and development. The decrease in research and development expenses of $1.0 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was primarily related to a $1.6 million decrease in external costs associated with the IW-3300 development program and a $1.2 million decrease in external costs associated with the linaclotide program, partially offset by a $1.3 million increase in external costs associated with the apraglutide program.

Current wording

Research and development expenses decreased by $0.6 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to a $3.5 million decrease in external costs associated with the linaclotide program and a $2.9 million decrease in external costs associated with the IW-3300 development program, partially offset by a $6.0 million increase in external costs associated with the apraglutide program.

Previous wording

Selling, general and administrative. Selling, general and administrative expenses decreased by $5.5 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to a $3.1 million decrease in compensation, benefits, and other employee-related expenses and a $2.2 million decrease in professional services expenses.

Current wording

Selling, general and administrative. Selling, general and administrative expenses decreased by $10.4 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to a $7.5 million legal contingency accrual recognized in the third quarter of 2025 related to a license agreement with Ferring International Center, S.A. (“Ferring”) (Note 4) and a $3.3 million decrease in professional services expenses.

Previous wording

Selling, general and administrative expenses decreased by $17.7 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to a $9.5 million decrease in compensation, benefits, and other employee-related expenses and a $7.4 million decrease in professional services expenses.

Current wording

Selling, general and administrative expenses decreased by $28.1 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to a $10.7 million decrease in professional services expenses, a $9.6 million decrease in compensation, benefits, and other employee-related expenses, and a $7.5 million legal contingency accrual recognized in the third quarter of 2025 related to a license agreement with Ferring (Note 4).

Previous wording

The decrease in restructuring expense of** **$18.3 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily related to the workforce reduction in January 2025 consisting primarily of field-based employees.

Current wording

Restructuring expenses decreased by$20.5 million for thenine months ended September 30, 2026 compared to thenine months ended September 30, 2025, primarily due to the workforce reduction in January 2025 consisting primarily of field-based employees.

Previous wording

Interest expense and other financing costs. Interest expense and other financing costs decreased by $1.2 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to lower interest rates on the Revolving Credit Facility throughout the period.

Current wording

Interest expense and other financing costs. Interest expense and other financing costs decreased by $2.2 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to lower interest rates and a lower outstanding principal balance on the Revolving Credit Facility throughout the period and adecrease in coupon interest expense related to the 2026 Convertible Notes, which were fully repaid upon maturity in June 2026.

Previous wording

Interest expense and other financing costs decreased by $0.1 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to lower interest rates on the Revolving Credit Facility throughout the period, partially offset by professional services incurred in connection with potential financing transactions.

Current wording

Interest expense and other financing costs decreased by $2.3 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to lower interest rates and a lower outstanding principal balance on the Revolving Credit Facility throughout the period and adecrease in coupon interest expense related to the 2026 Convertible Notes, which were fully repaid upon maturity in June 2026, partially offset by professional services incurred in connection with potential financing transactions.

Previous wording

Interest and investment income. Interest and investment income increased by $0.8 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 due to an increase in cash and cash equivalents balances throughout the period prior to repayment of the 2026 Convertible Notes in June 2026, partially offset by a decrease in interest rates.

Current wording

Interest and investment income. Interest and investment income decreased by $0.3 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarilydue to a lower cash and cash equivalents balances throughout the period and adecrease in interest rates.

Previous wording

Interest and investment income increased by $1.6 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 due to an increase in cash and cash equivalents balances throughout the period prior to repayment of the 2026 Convertible Notes in June 2026, partially offset by a decrease in interest rates.

Current wording

Interest and investment income increased by $1.3 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarilydue to an increase in cash and cash equivalents balances throughout the period prior to repayment of the 2026 Convertible Notes in June 2026, partially offset by a decrease in interest rates.

Previous wording

Other. During the three and six months ended June 30, 2026 and 2025, we recorded a gain of an insignificant amount for pension-related activities.

Current wording

Other. During the three and nine months ended September 30, 2026 and 2025, we recorded a gain of an insignificant amount for pension-related activities.

Previous wording

Income taxes.* *For the three and six months ended June 30, 2026, we recorded income tax expense of $22.4 million and $46.8 million, respectively. For the three and six months ended June 30, 2025, we recorded income tax expense of $14.2 million and $15.3 million, respectively. Due to our ability to utilize our net operating losses and research and development credits to offset the majority of federal taxable income and taxable income in most states, the majority of our tax provision will be a non-cash expense.

Current wording

Income taxes.* *For the three and nine months ended September 30, 2026, we recorded income tax expense of $27.8 million and $74.6 million, respectively. For the three and nine months ended September 30, 2025, we recorded income tax expense of $27.9 million and $43.3 million, respectively. Due to our ability to utilize our net operating losses and research and development credits to offset the majority of federal taxable income and taxable income in certain states, the majority of our tax provision will be a non-cash expense.

Previous wording

As of June 30, 2026, we had $79.1 million of cash and cash equivalents. Our cash equivalents include amounts held in money market funds and commercial paper. We invest cash in excess of immediate requirements in accordance with our investment policy, which limits the amounts we may invest in certain types of investments and requires all investments held by us to be at least A- rated, with a remaining final maturity when purchased of less than twenty-four months, so as to primarily achieve liquidity and capital preservation objectives.

Current wording

As of September 30, 2026, we had $86.4 million of cash and cash equivalents. Our cash equivalents include amounts held in money market funds and commercial paper. We invest cash in excess of immediate requirements in accordance with our investment policy, which limits the amounts we may invest in certain types of investments and requires all investments held by us to be at least A- rated, with a remaining final maturity when purchased of less than twenty-four months, so as to primarily achieve liquidity and capital preservation objectives.

Previous wording

We anticipate our cash and cash equivalents balance, our expected net cash inflows from operations, our borrowing capacity on our Revolving Credit Facility, and/or additional capital sources to allow us to meet our short-term and long-term cash obligations, which are reflected in our condensed consolidated balance sheets. Our most significant fixed obligations are debt obligations and lease commitments, for which annual payments are disclosed in Note 8,Debt, and Note 6,Leases, respectively, to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, as well as supply purchase commitments, for which the obligations are disclosed in Note 10,Commitments and Contingencies, in our 2025 Annual Report on Form 10-K.

Current wording

We anticipate our cash and cash equivalents balance, our expected net cash inflows from operations, our borrowing capacity on our Revolving Credit Facility, and/or additional capital sources to allow us to meet our short-term and long-term cash obligations, which are reflected in our condensed consolidated balance sheets. Our most significant fixed obligations are debt obligations and lease commitments, for which annual payments are disclosed in Note 8,Debt, and Note 6,Leases, respectively, to our condensed consolidated financial statements included elsewhere

Previous wording

We have financed our operations to date primarily through both the private sale of our preferred stock and the public sale of our common stock, debt financings, and cash generated from our operations. As of June 30, 2026, our debt is comprised of $385.0 million aggregate principal amount outstanding under our Revolving Credit Facility, which we entered into in May 2023 to partially finance our acquisition of VectivBio Holding AG in June 2023. The Revolving Credit Facility provides for $550.0 million of borrowing capacity and includes a $10.0 million letter of credit subfacility. Refer to Note 8,Debt, to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for information related to our debt obligations.

Current wording

We have financed our operations to date primarily through both the private sale of our preferred stock and the public sale of our common stock, debt financings, and cash generated from our operations. As of September 30, 2026, our debt is comprised of $325.0 million aggregate principal amount outstanding under our Revolving Credit Facility, which we entered into in May 2023 to partially finance our acquisition of VectivBio Holding AG in June 2023. The Revolving Credit Facility provides for $550.0 million of borrowing capacity and includes a $10.0 million letter of credit subfacility. Refer to Note 8,Debt, to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for information related to our debt obligations.

Previous wording

The following table summarizes cash flows from operating, investing, and financing activities for the six months ended June 30, 2026 and 2025:

Current wording

The following table summarizes cash flows from operating, investing, and financing activities for the nine months ended September 30, 2026 and 2025:

Previous wording

Net cash provided by operating activities is derived by adjusting net income (loss) for non-cash items and changes in operating assets and liabilities, which reflect timing differences between the receipt and payment of cash associated with transactions and when they are recognized in the results of operations.

Current wording

Net cash provided by operating activities is derived by adjusting net income for non-cash items and changes in operating assets and liabilities, which reflect timing differences between the receipt and payment of cash associated with transactions and when they are recognized in the results of operations.

Previous wording

Net operating cash inflows for the six months ended June 30, 2026 and 2025 totaled $63.4 million and $4.9 million, respectively, and were derived primarily from collaboration arrangements revenue related to sales of LINZESS in the U.S.

Current wording

Net operating cash inflows for the nine months ended September 30, 2026 and 2025 totaled $130.8 million and $52.5 million, respectively, and were derived primarily from collaboration arrangements revenue related to sales of LINZESS in the U.S.

Previous wording

Cash used in investing activities for the six months ended June 30, 2025 was insignificant and pertained to the purchase of property and equipment.

Current wording

Cash used in investing activities for the nine months ended September 30, 2025 was insignificant and pertained to the purchase of property and equipment.

Previous wording

Cash used in financing activities for the six months ended June 30, 2026 was $199.7 million, which was comprised primarily of a repayment of $200.0 million aggregate principal on the 2026 Convertible Notes upon their maturity in June 2026. Cash provided by financing activities for the six months ended June 30, 2025 was insignificant and was generated by employee equity transactions.

Current wording

Cash used in financing activities for the nine months ended September 30, 2026 was $259.7 million. Cash used in financing activities during the nine months ended September 30, 2026 was comprised primarily of a repayment of $200.0 million aggregate principal on the 2026 Convertible Notes upon maturity in June 2026 and a $60.0 million repayment on the Revolving Credit Facility. Cash provided by financing activities for the nine months ended September 30, 2025 was insignificant and was generated by employee equity transactions.

Previous wording

Under our collaboration with AbbVie for North America, total net sales of LINZESS in the U.S., as recorded by AbbVie, are reduced by commercial costs incurred by each party, and the resulting amount is shared equally between us and AbbVie. Additionally, we receive royalties from AbbVie based on sales of linaclotide in its licensed territories outside of the U.S. We believe revenues from our LINZESS partnership for the U.S. with AbbVie will continue to constitute a significant portion of our total revenue for the foreseeable future and we cannot be certain that such revenues, as well as the revenues from our other commercial activities, will continue to enable us to generate positive cash flows, or to do so in the timeframes we expect. We also anticipate that we will continue to incur substantial expenses for the next several years as we further develop and commercialize linaclotide in the U.S., develop** **and commercialize other product candidates, including apraglutide, and invest in building our pipeline through internal or external opportunities. We believe that our cash and cash equivalents on hand as of June 30, 2026, our expected cash inflows from operations, and our borrowing capacity on our Revolving Credit Facility will be sufficient to meet our

Current wording

Under our collaboration with AbbVie for North America, total net sales of LINZESS in the U.S., as recorded by AbbVie, are reduced by commercial costs incurred by each party, and the resulting amount is shared equally between us and AbbVie. Additionally, we receive royalties from AbbVie based on sales of linaclotide in its licensed territories outside of the U.S. We believe revenues from our LINZESS partnership for the U.S. with AbbVie will continue to constitute a significant portion of our total revenue for the foreseeable future and we cannot be certain that such revenues, as well as the revenues from our other commercial activities, will continue to enable us to generate positive cash flows, or to do so in the timeframes we expect. We also anticipate that we will continue to incur substantial expenses for the next several years as we further develop and commercialize linaclotide in the U.S., develop** **and commercialize other product candidates, including apraglutide, and invest in building our pipeline through internal or external opportunities. We believe that our cash and cash equivalents on hand as of September 30, 2026, our expected cash inflows from operations, and our borrowing capacity on our Revolving Credit Facility will be sufficient to meet our projected operating needs at least through the next twelve months from the issuance of our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. We have long-term debt obligations, which are disclosed in Note 8,Debt, to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. There is no assurance we will have sufficient liquidity to meet our debt obligations when they become due.

Previous wording

For a discussion of recent accounting pronouncements, refer to Note 2,Summary of Significant Accounting Policies, to our consolidated financial statements in our 2025 Annual Report on Form 10-K and Note 2,Summary of Significant Accounting Policies, appearing elsewhere in this Quarterly Report on Form 10-Q. We did not otherwise adopt any new accounting pronouncements during the three and six months ended June 30, 2026 that had a material effect on our condensed consolidated financial statements included in this report.

Current wording

For a discussion of recent accounting pronouncements, refer to Note 2,Summary of Significant Accounting Policies, to our consolidated financial statements in our 2025 Annual Report on Form 10-K and Note 2,Summary of Significant Accounting Policies, appearing elsewhere in this Quarterly Report on Form 10-Q. We did not otherwise adopt any new accounting pronouncements during the three and nine months ended September 30, 2026 that had a material effect on our condensed consolidated financial statements included in this report.