Ironwood Pharma (IRWD): Cutting PT But Reiterating Top Pick - Mizuho

Mizuho Securities analyst, Irina Koffler, cut her PT to $19 but reiterated her Outperform rating on shares of Ironwood Pharmaceuticals (NASDAQ: IRWD) and highlighted it as her top pick. The analyst is modeling revenue of $62.4M and a ($0.22) loss compared to the FactSet consensus of $60.7M and ($0.22).

The analyst expects higher profitability from a co-promotion, which should drive higher topline sales. For Linzess, the estimate is for $160M relative to the Bloomberg consensus of $166.2M.

The analyst cut the PT to $19 from $24 based on a slower Zurampic ramp (the deal will be accretive beginning in 2019) and additional marketing spend on this brand, which could exceed $75M/year as the guidance provided only covered ~10 months of selling/marketing costs. However, the analyst also raised longer term R&D estimates for pipeline investment, as the sGC program advances. The analyst still remains bullish in the outlook for the stock and the rationale for this spending based on the overall health of the Linzess business and expected pipeline progression.

For an analyst ratings summary and ratings history on Ironwood Pharmaceuticals click here. For more ratings news on Ironwood Pharmaceuticals click here.

Shares of Ironwood Pharmaceuticals closed at $15.71 yesterday.

For an analyst ratings summary and ratings history on Ironwood Pharmaceuticals click here. For more ratings news on Ironwood Pharmaceuticals click here.

Shares of Ironwood Pharmaceuticals closed at $15.71 yesterday.

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