Ironwood Pharmaceuticals (IRWD, Financial) faces increased financial challenges as Leerink analyst Faisal Khurshid adjusted the company's price target downward from $3 to $1. The update follows Ironwood's announcement that it must conduct an additional Phase 3 trial for the drug apraglutide, aimed at treating short bowel syndrome, before pursuing FDA approval.
This development complicates Ironwood's strategy to offset a potential revenue dip stemming from the loss of exclusivity of its prior blockbuster drug, Linzess. The necessity for further trials not only delays apraglutide's market entry but also introduces additional financial strain, adding uncertainty to the company's future prospects.
Despite these challenges, Khurshid maintained a Market Perform rating, indicating that while current conditions are difficult, there might be some potential for recovery if the upcoming trials prove successful. Investors are advised to remain cautious as Ironwood navigates these uncertain waters.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Ironwood Pharmaceuticals Inc (IRWD, Financial) is $8.67 with a high estimate of $14.00 and a low estimate of $3.00. The average target implies an upside of 1,204.83% from the current price of $0.66. More detailed estimate data can be found on the Ironwood Pharmaceuticals Inc (IRWD) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Ironwood Pharmaceuticals Inc's (IRWD, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ironwood Pharmaceuticals Inc (IRWD, Financial) in one year is $7.35, suggesting a upside of 1006.59% from the current price of $0.6642. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ironwood Pharmaceuticals Inc (IRWD) Summary page.
