Zacks Investment Research downgraded shares of Ironwood Pharmaceuticals, Inc. (IRWD) from OUTPERFORM to NEUTRAL on April 11, 2014, with a target price of $11.00.
Ironwood reported a loss of $0.43 per share in the fourth quarter of 2013 compared with the year-ago loss of $0.41 per share. The Zacks Consensus Estimate was a loss of $0.50 per share. We are positive on Ironwood's efforts to broaden Linzess' label by expanding the targeted patient population and gaining approval for additional indications. Ironwood's partnerships with big pharma companies for the development and commercialization of Linzess in different territories are also encouraging. However, we are concerned about the disappointing top-line phase II data on Linzess released by Astellas. Since Linzess, launched in Dec 2012, is the company's sole marketed product, it is highly dependent on the drug for growth. An uncertain ramp in Linzess sales has also been bothering us. Based on the above factors we are moving back to a Neutral recommendation.
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