Ironwood price target raised to $3.80 from $1.70 at Craig-Hallum

Craig-Hallum raised the firm’s price target on Ironwood (IRWD) to $3.80 from $1.70 and keeps a Hold rating on the shares after the Centers for Medicare and Medicaid Services’ announced negotiated maximum fair prices in Medicare for the 15 drugs selected for 2027 Inflation Reduction Act price negotiations. The negotiated price for a 30-day supply of Linzess came in at $136, basically inline with Craig-Hallum’s base case, the analyst tells investors in a research note. The firm points out the price only applies to Medicare patients and patients and represents a 75% discount to the 2024 list price of $539. Hallum thinks this clarity on pricing will strengthen Ironwood’s position as it looks at strategic alternatives.