Ironwood Pharmaceuticals (Nasdaq: IRWD) is getting ready to send its first drug candidate to the U.S. Food and Drug Administration, and it could be a doozy. The experimental drug for irritable bowel syndrome has a potential market of $6 billion annually, in a therapeutic area with few good treatments.
Barrons had a nice article about Billion dollar babies in which they profiled Benlysta (HGSI and GSK), Ipilimumab (BMY),Telaprevir (VRTX & J and J),INCB18424 (INCY &NVS) and Xarelto( J and J, BAYRY). HGSI has a market cap three times that of IRWD. Linaclotide has all the makings of a billion dollar blockbuster. IMO, with time IRWD could be a $40 stock.
FWIW, Morgan Stanley, "We are initiating coverage of IRWD with an OW rating and $22 PT. While approval of linaclotide, Ironwood’s key value driver, is expected since the only hurdle remaining is low-risk stability testing, we believe the Street underestimates linaclotide’s sales potential in chronic constipation (CC) and irritable bowel syndrome with constipation (IBS-C). We see linaclotide as one of a few potential blockbuster drugs in late stage dev’t with its solid therapeutic profile driving peak sales >$2bn."