BTIG Raises Ironwood Pharmaceuticals Price Target Ahead Of New Drug Launch

BTIG believes Ironwood Pharmaceuticals, Inc. IRWD provides more than 15 percent upside from the current levels, pointing out the pipeline opportunities. In the current month alone, the stock delivered about 19 percent returns to investors, hitting a 52-week high.

Analyst Timothy Chiang boosted the price target from $15 to $18 and maintained his Buy rating on the stock.

The brokerage believes there several catalysts in the near-term offering pleasant upside surprises. However, the immediate focus would be on Zurampic launch in October that is meant to treat hyperuricemia associated with gout. The company has already strengthened its sales team.

Another focus area is the second stage data release from its "colonic-release formulation of linaclotide" for IBS-C treatment. Aside from these, the brokerage expects more visibility on soluble guanylate cyclase (sGC) stimulators before the end of the current year. This included IW-1973.

"We are focused on three pipeline opportunities — the colonic release formulation of linaclotide (currently in Phase 2b), IW-3718 for treatment of refractory GERD (recently entered Phase 2b) and IW-1973/1701, its two soluble guanylate cyclase (sGC) stimulators for vascular & fibrotic diseases," analyst viewed in his research note.

The brokerage expects the pharmaceuticals firm to break-even by 2018 and sees Zurampic generating sales of $30 million in 2019 to reach $300 million by the turn of 2024. Chiang sees the company attaining full profitability in 2019.