Wells Fargo Downgrades Ironwood Pharmaceuticals (IRWD) to Equal Weight

Wells Fargo analyst Mohit Bansal downgraded Ironwood Pharmaceuticals (NASDAQ: IRWD) from Overweight to Equal Weight with a price target of $1.00 (from $7.00).

The analyst comments "FDA's request for a new trial delays a key near-term growth driver and puts add'l financial pressure on the company, which already carries a high debt load. Downgrading to Equal Weight and reducing DCF-based PT to $1/sh (from $7). Major setback for apraglutide. We view the FDA's request for a confirmatory trial of apraglutide in short bowel syndrome with intestinal failure (SBS-IF) as a major setback. The company had anticipated a launch by early next year on the first Phase 3 trial. This delay and need for investment in another trial strains IRWD's financial resources further and the company announced it will explore strategic alternatives, while continuing to pursue apra development."

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 $0.95 yesterday.

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