Ironwood price target lowered to $8 from $10 at Craig-Hallum

Craig-Hallum lowered the firm’s price target on Ironwood (IRWD) to $8 from $10 and keeps a Buy rating on the shares. The firm notes Linzess has been included on the list of 15 drugs to see price negotiations effective calendar year 2027. After doing more work, Craig-Hallum believes it has underestimated the effect of the Part D redesign and associated 10%-20% mandatory rebates on Linzess in 2025, and is dropping its numbers materially to account for what would likely be the worst-case scenario.