I finally added Ironwood this morning. Picked it up at $14.40 – just above an area it has had difficulty with in the past. I will give it room to move 10% on the downside – so stops at $12.96. 24% of portfolio in the position.
Yesterday’s precipitous decline appears to have been due to the announcement (after hours – but I guess someone know ahead of time) that the company was offering 5.25M shares to raise capital ahead of the launch of Linaclotide – its IBS drug. In addition, the company made an announcement last evening that the FDA will not be scheduling an Ad Comm meeting for the drug ahead of its PDUFA date.