UPDATE: Aegis Capital Initiated Ironwood Pharmaceuticals with Buy, $17 PT; Unique Gastrointestinal Opportunity

In a recently released report, Aegis Capital said it initiated coverage on Ironwood Pharmaceuticals IRWD with a Buy rating and a $17 price target on shares. Aegis Capital commented, "The current market for chronic constipation (CC) and constipation-predominant irritable bowel syndrome (IBS-C) is substantial, with over 100mm people estimated to suffer from these disorders in the U.S., Europe, and Japan. Roughly 8mm individuals in the U.S. alone seek treatment for constipation-related disorders every year. Existing therapies are either only palliative or marginally effective, with substantial side effect risk. We believe this creates a compelling opportunity for firms like Ironwood, since linaclotide is based on a naturally-occurring hormone called uroguanylin and utilizes an evolutionarily-derived mechanism of action." Ironwood Pharmaceuticals closed at $13.87 on Friday.