Why Is Gastrointestinal Healthcare Focused Ironwood Pharmaceuticals Stock Sinking On Thursday?
Portfolio Pulse from Vandana Singh
Ironwood Pharmaceuticals Inc (NASDAQ:IRWD) reported that its Phase 3 STARS trial of apraglutide for short bowel syndrome with intestinal failure met its primary endpoint but missed two key secondary endpoints, leading to a 39.50% drop in its stock price. The company plans to submit regulatory filings for apraglutide, acquired through a $1 billion deal with VectivBio.
February 29, 2024 | 4:34 pm
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Ironwood Pharmaceuticals' stock plummeted by 39.50% after announcing mixed results from its Phase 3 STARS trial of apraglutide, despite meeting its primary endpoint.
The significant drop in Ironwood Pharmaceuticals' stock price is directly attributed to the mixed results from the Phase 3 STARS trial of apraglutide. While the trial met its primary endpoint, the failure to achieve two key secondary endpoints likely raised concerns among investors about the drug's commercial potential and regulatory approval prospects. This news is critical for investors as it directly impacts the company's future revenue potential and growth strategy, especially considering the substantial investment in acquiring apraglutide through the VectivBio deal.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100