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Monday, May 4, 2009
Ironwood nets $40M to start licensing constipation drug
By Mass High Tech staff
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Ironwood Pharmaceuticals Inc. has secured a $40 million licensing agreement with Spanish pharmaceutical firm Laboratorios Almirall S.A. for European development and commercialization rights of the Cambridge biotech’s treatment of irritable bowel syndrome.
The treatment, called linaclotide, is made to combat constipation and gastrointestinal issues. The compound is now in Phase 3 clinical trials, following the receipt of $50 million in private funding.
The $40 million upfront licensing fee is part of Almirall’s $55 million in near-term payments and $95 million in total fees and milestone payments. The Barcelona-based company will also pay Ironwood escalating royalties on sales of the drug.
According to Ironwood officials, the licensing agreement allows the company to continue its U.S. growth of the drug, while also building a customer base in Europe. The agreement calls for Almirall to carry the commercialization, regulatory approval and associated cost responsibilities for Europe.
Irritable bowel syndrome with constipation (IBS-C) affects about nine million people in Europe’s five major markets, Ironwood officials report.
Ironwood has raised $281 million in private equity financing. The company 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. It changed its name to Ironwood Pharmaceuticals in April 2008.
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