Skip to main content

Market Overview

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

Share:

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
Feb 2021Morgan StanleyMaintainsEqual-Weight
Feb 2021Morgan StanleyMaintainsEqual-Weight
Nov 2020Credit SuisseMaintainsNeutral

View More Analyst Ratings for IRWD
View the Latest Analyst Ratings

 

Related Articles (IRWD)

View Comments and Join the Discussion!

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

Latest Ratings

StockFirmActionPT
QSRNorthcoast ResearchInitiates Coverage On
DQGLJ ResearchInitiates Coverage On22.1
TCMaxim GroupDowngrades
GLNGB of A SecuritiesDowngrades
LMNXPiper SandlerDowngrades37.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com