Ironwood price target lowered to $1 from $3 at Leerink

Leerink analyst Faisal Khurshid lowered the firm’s price target on Ironwood (IRWD) to $1 from $3 and keeps a Market Perform rating on the shares after the company announced they will need to run an additional confirmatory Phase 3 trial for apraglutide in short bowel syndrome in order to seek FDA approval. Apraglutide was meant to be the next leg of the story following Linzess’ loss of exclusivity and today’s development adds to the company’s financial uncertainty, making it “a painful development,” the analyst tells investors.