Bank of America: Zelnorm vs. linaclotide

In a research report published today by Bank of America, Ironwood Pharmaceuticals'

Zelnorm is being revisited as a proxy for the linaclotide launch. In the report, Bank of America stated, “As the expected linaclotide FDA approval decision approaches (expected June), we revisited historical prescription trends for the best available proxy, Zelnorm, once approved for irritable bowel syndrome with constipation (IBS-C) but now off the market. Based on current pricing expectations, and our belief that linaclotide has a strong product profile that exceeds Zelnorm, linaclotide appears poised to perform as well as or better than initial Zelnorm uptake.” Bank of America maintains its Neutral rating and $16 PT on Ironwood Pharmaceuticals, which closed Friday at $14.07.