JMP has started coverage of Ironwood Pharmaceuticals (NASDAQ:IRWD) with a market outperform rating, citing the potential of its recently acquired drug apraglutide.
The investment bank called apraglutide a “best-in-class” GLP-2 analog, based on its once-weekly administration and “demonstrated benefits” across short bowel syndrome, or SBS, populations. It added that it sees upcoming Phase 3 results for SBS, expected in March, to “confirm this target profile and blockbuster commercial opportunity.”
Ironwood acquired apraglutide through its merger with VectivBio in June.
JMP also said it expects Ironwood’s drug Linzess to remain an “important growth driver,” with a recent label expansion into pediatric populations representing a potential “near-term inflection point” for the drug.
The bank set a price target of $22 for the stock.