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UPDATE: Cantor Fitzgerald Lowers PT on Ironwood Pharmaceuticals on Lower than Expected Constella Pricing

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In a report published Tuesday, Cantor Fitzgerald analyst Irina Rivkind lowered the price target on Ironwood Pharmaceuticals (NASDAQ: IRWD) from $9 to $7 and reiterated a Sell rating on the company.

In the report, Cantor Fitzgerald commented, "On June 12 the company announced its restructured agreement with European partner Almirall. Because of lower-than expected pricing of Constella (linaclotide) in the European territories Ironwood agreed to accept lower commercial launch milestones (now $17M, down from $20M) and lower initial sales royalties (low-20% range, down from mid-20% range) in exchange for a higher sales royalty on the back end (mid-40% range) and an additional $26M in commercial milestones. We think that these "upside" milestone and royalty scenarios may never materialize. We have taken down our OUS royalty estimates in 2020 from $127M to $54M to account for lower EU pricing and royalty levels."

Ironwood Pharmaceuticals closed Monday at $11.01.

Latest Ratings for IRWD

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

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Posted-In: Cantor Fitzgerald Irina RivkindAnalyst Color Price Target Analyst Ratings

 

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