Seeking Alpha

Goldman starts Ironwood at Sell, sees Linzess consensus coming down

Goldman becomes the second firm in a week to suggest estimates for Ironwood's (IRWD -1.2%) Linzess may be too high. (see Mizuho slashes Linzess revenue target)

"Linzess has a very strong profile [but] based on a physician survey we believe consensus expectations are too aggressive and will likely have to come down over time," Goldman says, initiating IRWD at Sell.

The firm also says IRWD exhibits "high spending levels and significant cash burn [which could lead to] profitability getting pushed out and the possibility for additional financing required in 1-2 years."

Price target is $9.50.

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