Ironwood Pharmaceuticals Swings to Q2 Adjusted Loss, Revenue Climbs

  LINZESS (Iinaclotide) EUTRx prescription demand growth increased 9% year-over-year; LINZESS U.S. net sales of $270 million, an increase of 9% year-over-year –

– Expands clinical utility of LINZESS with FDA approval for pediatric patients ages 6-17 years-old suffering from functional constipation (FC) –

– Strengthens GI development portfolio with acquisition of VectivBio Holding AG and its lead investigational asset, apraglutide, for the potential treatment of short bowel syndrome with intestinal failure –

– Completes STARS Phase III clinical trial enrollment; now expects topline data in March of 2024 –

FDA Approval of New Indication for LINZESS

• In June 2023, Ironwood announced that the U.S. Food and Drug Administration ("FDA") approved LINZESS as a once-daily treatment for pediatric patients ages 6-17 years-old suffering from functional constipation. LINZESS is the first and only FDA-approved prescription therapy for functional constipation in this patient population.

Acquisition of VectivBio Holding AG ("VectivBio")

• On June 29, 2023, Ironwood completed a tender offer to purchase outstanding ordinary shares of VectivBio (the "VectivBio Shares") at a price per share of $17.00, net to the shareholders of VectivBio in cash, without interest and subject to any applicable withholding taxes. The aggregate consideration paid by Ironwood to acquire the shares accepted for payment was approximately $1.2 billion. Ironwood financed the acquisition through proceeds from the borrowings under a revolving credit facility entered into in connection with the transaction, cash on hand, and cash of VectivBio.
• As of June 30, 2023, Ironwood holds 98% of the outstanding VectivBio Shares. Ironwood intends to effect a squeeze-out merger under Swiss law to acquire the remaining outstanding VectivBio Shares in the second half of 2023. The remaining outstanding VectivBio Shares are expected to be settled by Ironwood in cash.

Workforce Reductions and Restructuring

• In April 2023, Ironwood reduced its workforce by approximately 10% of its headquarters-based personnel in an effort to further strengthen the operational efficiency of the organization. The workforce reduction was substantially completed during the second quarter of 2023.
• In June 2023, Ironwood commenced the elimination of certain positions in connection with the VectivBio acquisition. The majority of the eliminations were initiated in June 2023 and the remaining eliminations are expected to be substantially completed during the third quarter of 2023.

https://www.benzinga.com/pressreleases/23/08/b33622314/ironwood-pharmaceuticals-reports-second-quarter-2023-results-raises-full-year-2023-linzess-u-s-net