Ironwood expects to complete separation in 1H19
"Ironwood carried operating momentum from the first half of 2018 through the third quarter, driven by 12% LINZESS demand growth and further advancement of our five ongoing clinical programs with linaclotide, IW-3718, olinciguat and praliciguat," said Peter Hecht, CEO of Ironwood. "LINZESS is the branded prescription market leader in its class, driven by our productive investments in marketing, personal promotion and payer access. LINZESS is a growth brand with years of expected patent coverage ahead, and we and Allergan are investing in multiple innovative strategies that we believe represent an opportunity to drive significant growth going forward. We also made progress on our planned separation, which we believe will better position both companies to bring new treatment options to patients and unlock value for shareholders. Following the separation, we expect Ironwood will be a profitable, leading U.S. GI company. We expect the R&D Co. to harness its expertise in sGC pharmacology, developing five sGC stimulators tailored for serious and orphan diseases." In May 2018, Ironwood announced its intent to separate into two independent, publicly traded companies. The separation is expected to be completed in the first half of 2019 and is anticipated to be tax-free to Ironwood shareholders. Following the separation, Ironwood expects to be profitable and to focus on building a leading U.S. GI healthcare company. Ironwood intends to leverage its broad capabilities to advance a strong GI portfolio, including LINZESS - the branded prescription market-leading product in its class - and two potentially highly differentiated, late-stage development products in IW-3718 and MD-7246. R&D Co. expects to harness its deep expertise in cyclic guanosine monophosphate pharmacology to advance an innovative sGC stimulator pipeline focused on the treatment of serious and orphan diseases. At its strategic core are expected to be five novel sGC stimulator programs tailored to the tissues most relevant to the diseases they are designed to treat, including olinciguat, praliciguat, IW-6463, and late-stage discovery programs targeting serious liver and lung diseases.