Ironwood Pharma's (IRWD) Linzess Sales Missed Estimates; Leerink Partners Reiterates Market Perform
Leerink Partners maintained a Market Perform rating and $12.00 price target on Ironwood Pharmaceuticals (NASDAQ: IRWD), following the company's 3Q earnings report. IRWD reported 3Q Linzess sales of ~$117m coming in modestly below Leerink's estimate of ~$121m.
Analyst Jason Gerberry commented, "IRWD reported 3Q Linzess sales of ~$117m coming in modestly below our est. of ~$121m. The miss was modest, and we don’t expect material changes to Street ests in light of a +10% price increase taken in October. We are updating our model post 3Q to reflect: (1) the new AGN ex-US partnership structure – with royalty rates on relatively small revenue starting mid-single digits and reaching the teens by 2019; and (2) tweaking our near-term estimates for Linzess to reflect the modest 3Q sales miss. Overall, the Linzess performance in 3Q was inline, and the business looks durable in our view. We view any incremental competition in the market from SGYP’s (NR) plecanatide as market expanding rather than a threat to the Linzess business. Recall, when Linzess came to market it expanded the market taking share from the OTC segment rather than Takeda/SCMP’s (MP) actively promoted Amitiza. However, we remain MP with $12/PT as it is unclear if any nonexploratory study data read out in a 12-18 mos. time horizon."
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 $11.50 yesterday.