Biotech investors love to speculate on the basis of what a drug could
generate in future sales, but relatively few of them have the patience
to stick it out and support a company as it transitions from an R&D
enterprise to a commercial enterprise. In cases like Ironwood (NASDAQ:IRWD) where the company has a lot of market development work to do, patience can be even thinner.
To
be fair to Ironwood, the shares have done quite well over the past year
(up more than 50%), but over the trailing five years the shares are up
just 5% (during a red-hot biotech market). For Ironwood to work well as a
stock from here, management has to deliver on its efforts to drive
patient and physician awareness and that's no easy task when a large
proportion of the market can arguably be suitably managed with diet
modifications or cheap OTC and generic options. While the potential is
here for Ironwood shares to be worth considerably more in a few years'
time, I think the potential rewards and risks are pretty well balanced
right now.
Continue reading here:
Ironwood Has Plenty Of Market-Development Work Ahead
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