Back to top

Analyst Blog

On January 2, 2013, Zacks Investment Research upgraded Ironwood Pharmaceuticals, Inc.’s (IRWD - Analyst Report) to a Zacks #1 Rank (Strong Buy).

Why the Upgrade?

Ironwood Pharma has been buoyed by a string of good news lately. On December 17, 2012, Ironwood Pharma and partner Forest Laboratories, Inc. announced the US launch of their drug Linzess (linaclotide). The launch followed the approval of the drug by the US Food and Drug Administration (FDA) in August 2012 for the treatment (once-daily) of adults suffering from irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation (CIC).

In the EU, approval came in November 2012 under the trade name Constella. Ironwood Pharma is collaborating with Almirall, S.A. in EU for the drug. Ironwood Pharma is also working with its Japanese partner, Astellas Pharma Inc. for the development of linaclotide in Japan and other Asian countries.

Furthermore, Ironwood Pharma performed impressively in the third quarter 2012. On October 16, Ironwood Pharma reported third quarter earnings of 42 cents, which compared favorably with the year-ago loss of 21 cents per share and the Zacks Consensus Estimate of 15 cents.

All the positive factors mentioned above have contributed to the Zacks Consensus Estimate being narrowed to a loss of 81 cents from a loss of $1.21 over the last 90 days. For 2013, the Zacks Consensus Estimate has been revised to a loss of $2.22 per share from a loss of $2.38 over the same time period. 

Other Stocks to Consider

The following pharma companies with favorable Zacks Rank are also performing well and are worth considering.

1) Valeant Pharmaceuticals International, Inc. (VRX - Analyst Report) carries a Zacks #1 Rank (Strong Buy)

2) Novo Nordisk (NVO - Analyst Report) holds a Zacks #2 Rank (Buy)

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
GTT COMMUNI… GTT 11.65 +4.11%
ALLERGAN IN… AGN 161.82 +3.99%
CLAYTON WIL… CWEI 117.06 +3.73%
GREENBRIER… GBX 69.63 +2.37%
RF MICRO DE… RFMD 12.02 +2.04%