Sorry baggers, this isn't shorts,this was an overvalued company. Don't believe me,read what Cantor Fitzgerald said BEFORE approval: Cantor Fitzgerald reiterates a 'Sell' on Ironwood Pharmaceuticals (NASDAQ: IRWD) price target of $8.00.
Analyst, Irina Rivkind, said, "We reiterate our SELL rating going into the Linaclotide PDUFA: We remain cautiously optimistic about a first pass approval (we estimate 70% probability) but maintain that the stock is overvalued and could sell off even under a best-case scenario (since investors may play the event and then exit the stock post-approval due to lack of pending positive catalysts). On the flip side, we think that a CRL would be catastrophic to the stock (drop of 30% or more). Under this second scenario, the company would continue to burn significant cash while it awaited FDA approval (which may expedite another financing round with the stock potentially trading at lower levels). We are also not expecting a near-term company takeout."
Give it a few days before getting in, as many biotechs have sold off in recent times upon FDA approval, only to rebound sharply thereafter. I love Jeffries analysis that $2 billion in annual sales is possible with little to no competition.