Ironwood Pharma (NASDAQ:IRWD)

CAPS Rating: 3 out of 5


Player Avatar zzlangerhans (99.81) Submitted: 2/27/2013 1:28:24 AM : Underperform Start Price: $14.68 IRWD Score: +9.09

Ironwood will likely continue to be a cyclical stock for the next few quarters as Linzess revenue optimism faces off against the anxiety engendered by large quarterly losses. Meanwhile, the company has initiated a phase II trial of GC-C agonist IW-9179 for functional dyspepsia, a condition which they claim affects a large proportion of Americans. Functional dyspepsia, however, is not a condition that is well-defined in the medical community. One might call it indigestion, and it is unclear how many people out there are actually requiring a chronic medication for this condition above and beyond antacids. For Ironwood to present it as a major source of morbidity in the US seems disingenuous.

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