Thursday, October 2, 2008

Ironwood lands $50M funding to develop IBS drugs

By Mass High Tech Staff

Ironwood Pharmaceuticals Inc. received $50 million in private funding to complete the Cambridge-based firm’s irritable bowel syndrome (IBS) drug, linaclotide, Phase 3 trial program. Morgan Stanley Investment Management led the financing, and former investor Ridgeback Capital participated.

The financing brings the Cambridge-based firm’s total amount of private equity raised to over $280 million.

The company stated it would also use the capital to fund other drug candidates in development and expand its marketing and commercial teams.

The biotech has two ongoing Phase 3 trials testing linaclotide, one initiated through its partnership with Forest Laboratories, for patients IBS with constipation. Two additional Phase 3 trials for the treatment of constipation alone are expected to begin by in early 2009, enrolling 2,500 patients.

In 2007, the biotech raised $50 million in a sixth round of private equity financing. That capital brought linaclotide through Phase 2 trials and helped Ironwood development of a drug known as MD-0727 for hypercholesterolemia.

Ironwood was founded in 1999 as Microbia Inc. and operates a subsidiary, Microbia Precision Engineering Inc., which develops bioprocesses to produce specialty chemicals for both internal use and strategic partners. The company changed its name to Ironwood Pharmaceuticals in April.

Phase 2b trial results will be presented at the American College of Gastroenterology 2008 Annual Scientific Meeting in Orlando, Fla. on October 7, 2008.