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 |
Industry | Biotechnology |
Trailing-12-Month Revenue | $150.2 million |
Management | Co-Founder/CEO Peter Hecht |
Return on Equity (average, past 3 years) | (58.7%) |
Cash/Debt | $168.2 million / $569,000 |
Competitors | Shire |
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.
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