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Jefferies initiated coverage of Ironwood Pharmaceuticals (NASDAQ:IRWD) with a Buy rating, saying it believes the Street is underestimating the upside potential of its GLP-2 agonist drug apraglutide.
The investment bank said it believed the shares were currently trading at the “bottom line” of Ironwood’s Linzess drug, which accounts for 96% of the company’s revenue. The medication is approved for IBS-C, chronic idiopathic constipation, and pediatric functional constipation.
Jefferies said he believes apraglutide “will be successful” in its Phase 3 study for the short bowel system with intestinal failure, showing greater efficacy with weekly dosing versus Takeda’s Gattex, which must be taken daily. Top-line data is expected in March 2024.
The investment bank set its price target for the stock at $21.
