Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Ironwood Pharma Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug developer Ironwood Pharmaceuticals (NASDAQ: IRWD  ) has received an alarming one-star ranking.

With that in mind, let's take a closer look at Ironwood and see what CAPS investors are saying about the stock right now.

Ironwood facts

Headquarters (founded)

Cambridge, Mass. (1998)

Market Cap

$1.6 billion



Trailing-12-Month Revenue

$150.2 million


Co-Founder/CEO Peter Hecht
COO/CFO Michael Higgins

Return on Equity (average, past 3 years)



$168.2 million / $569,000


Sucampo Pharmaceuticals
Takedo Pharmaceutical

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 27% of the 45 members who have rated Ironwood believe the stock will underperform the S&P 500 going forward.

Earlier today, one of those Fools, All-Star zzlangerhans, succinctly summed up the Ironwood bear case for our community:

Ironwood will likely continue to be a cyclical stock for the next few quarters as Linzess revenue optimism faces off against the anxiety engendered by large quarterly losses. Meanwhile, the company has initiated a phase II trial of GC-C agonist IW-9179 for functional dyspepsia, a condition which they claim affects a large proportion of Americans. Functional dyspepsia, however, is not a condition that is well-defined in the medical community. One might call it indigestion, and it is unclear how many people out there are actually requiring a chronic medication for this condition above and beyond antacids. For Ironwood to present it as a major source of morbidity in the US seems disingenuous.

If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 01, 2013, at 1:22 PM, Hillstonebailey wrote:

    Don't discount it too much, Linzess is a good drug.

    People who take it will mostly determine it's success. Docs are still learning about it.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2282384, ~/Articles/ArticleHandler.aspx, 9/28/2016 4:48:45 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 7 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:00 PM
IRWD $16.10 Up +0.59 +3.80%
Ironwood Pharma CAPS Rating: ***
SCMP $12.97 Up +0.03 +0.23%
Sucampo Pharmaceut… CAPS Rating: ****
SHPG $200.22 Up +1.13 +0.57%
Shire CAPS Rating: ****