Market Overview

UPDATE: Morgan Stanley Downgrades Ironwood Pharmaceuticals to Equal-Weight on Lower Linzess Sales Estimates

Related IRWD
Ironwood Presents IW-9179 Phase IIa Data At American College Of Gastroenterology 2014 Annual Scientific Meeting
Ironwood Pharmaceuticals Announces Initiation Of Phase II Trial Of Linaclotide In Adult Patients With Opioid-Induced Constipation

In a report published Wednesday, Morgan Stanley analyst David Friedman downgraded the rating on Ironwood Pharmaceuticals (NASDAQ: IRWD) from Overweight to Equal-Weight, and lowered the price target from $21.00 to $18.00.

In the report, Friedman noted, “We model peak WW sales of ~$2bn, and believe the stock is pricing in sales of this magnitude. Linzess' advantages are its strong benefits on both bowel movements and pain, with relatively limited side effects aside from diarrhea in ~14-20% of pts (typically mild/moderate, led to discontinuation in ~4-6% of pts). The unmet need in CC and IBS-C is large. Many people remain untreated, and of those that are treated with current therapeutic options (diet, laxatives, Amitiza), a majority remain unsatisfied. We believe an effective therapy, such as Linzess, could make a big impact on these markets. Linzess' cost is a concern as the CC and IBS-C markets are dominated by generic and OTC drugs, but we see a competitive cost/benefit profile and use mainly in a laxative refractory patient population.”

Ironwood Pharmaceuticals closed on Tuesday at $16.77.

Latest Ratings for IRWD

DateFirmActionFromTo
Sep 2014Cowen & CompanyDowngradesOutperformMarket Perform
Aug 2014Leerink SwannMaintainsMarket Perform
Jul 2014Furey ResearchInitiates Coverage onBuy

View More Analyst Ratings for IRWD
View the Latest Analyst Ratings

Posted-In: Morgan StanleyAnalyst Color Downgrades Analyst Ratings

 

Related Articles (IRWD)

Around the Web, We're Loving...

Get Benzinga's Newsletters