Ironwood initiated with a Buy at Jefferies

Jefferies initiated coverage of Ironwood with a Buy rating and $21 price target. The firm’s Buy thesis “is simple,” says the analyst, who believes the stock is currently trading around the Linzess “floor” and that the Street currently isn’t appreciating the potential upside from the company’s GLP-2 agonist, apraglutide. The analyst thinks apraglutide will likely hit in the Phase 3 SBS-IF trial that is expected to readout topline results in March 2024 and show better efficacy with once weekly dosing than the currently marketed GLP-2 agonist Gattex.