Blog Exposure - Ironwood to Separate Its Soluble Guanylate Cyclase Business from Commercial and Gastrointestinal Business

Stock Monitor: Medicines Co. Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 03, 2018 / Active-Investors.com has just released a free research report on Ironwood Pharma, Inc. (IRWD). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=IRWD as the Company's latest news hit the wire. On May 01, 2018, the Company declared that its Board of Directors has approved an intent to separate into two independent, publicly-traded Companies, i.e. Ironwood, and R&D Co. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Ironwood Pharma most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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A Transformative Milestone for Ironwood Pharma

The separation announcement is a major changing point for Ironwood. At present, Ironwood markets three commercial medicines, and is also developing a strong pipeline of drug candidates for treating severe diseases. Over the last 20 years, the Company has emerged as a pioneer in two important fields: (i) commercializing products in categories with millions of potential patients, and (ii) innovating to discover and develop important new medicines. The separation decision was based on the Company's positive Phase-IIb data from IW-3718, along with the significant progress in its sGC platform, including the recent Phase-IIa praliciguat data.

Terrance G. McGuire, Ironwood's Chairman of the Board of Directors, shared that the Board is always on the lookout for strategic opportunities to maximize shareholder value. This strategic review for separation of the business, which commenced in the fall of 2017, focused on opportunities to best develop Ironwood's strong commercial platform along with its rich drug discovery and development assets. Post a comprehensive review, the Board and management team unanimously decided that the separation of these platforms into two independent, publicly-traded Companies targeting differentiated markets would be the best option for driving operating performance, accelerating growth, and unlocking value.

Separation into Two Focused, Growth-Oriented Companies

The planned separation will create two agile, productive businesses with strong competitive positions. These two Companies would have distinct management teams focusing on each business' unique strategic priorities, target markets, and corporate development opportunities. Besides, both will have specifically tailored capital allocation strategies, and refined investment propositions to attract long-term shareholders. Post separation, the commercial business will continue to be named Ironwood. However, the name of R&D Co. will be announced at a later date. The headquarters for both businesses are expected to be in Cambridge, Massachusetts.

Ironwood

• Following the separation, Ironwood is expected to be a profitable Company. It would accelerate the growth of its three in-market products and develop its product candidates for treating gastrointestinal (GI) diseases, uncontrolled gout, and abdominal pain by leveraging its commercial success till date.

• It must be noted that Ironwood's current linaclotide collaborations are expected to remain with Ironwood. Besides, the Company would also retain US rights to the lesinurad franchise for uncontrolled gout, including the recently introduced DUZALLO® (lesinurad and allopurinol) and ZURAMPIC® (lesinurad). These assets are first-in-category therapies with the potential to treat millions of patients suffering from serious and chronic disorders, and are expected to have robust intellectual property coverage into the 2030s.

• Moreover, post separation, Ironwood would be able to employ more innovative consumer-led marketing techniques, such as digital advertising, to effectively engage, educate, and motivate patients and healthcare providers.

• The Company would also be able to execute on a multi-faceted business development strategy and secure broad market access through greater payer appreciation of product value.

R&D Co.

• R&D Co. will build on Ironwood's pioneering work in cyclic guanosine monophosphate (cGMP) pharmacology. This business would work towards advancing an innovative sGC pipeline for the treatment of serious and orphan diseases. This includes Phase-II for heart failure with preserved ejection fraction (HFpEF) and for diabetic nephropathy; olinciguat in Phase-II targeting sickle cell disease and achalasia; and tissue-targeted sGC stimulators, including IW-6463 in development for severe central nervous system diseases; and other discovery programs for treating severe liver and lung diseases. Thus, as an independent Company, R&D Co. is expected to apply its core competency in NO/sGC/cGMP (nitric oxide/sGC/cyclic guanosine monophosphate) pharmacology and rapidly advance its pipeline of clinical-stage assets, including praliciguat and olinciguat.

• Post separation, R&D Co. would tailor its development approaches to serious and orphan diseases, and accelerate drug development with more parallel programs and innovative trial designs.

• It would also create strategic partnerships to achieve the full patient impact and value creation in the diverse markets that its products could serve.

Transaction Closing

At present, the separation is subject to customary conditions, including the receipt of regulatory approvals, a favorable opinion regarding the tax-free nature of the transaction, and the final approval of Ironwood's Board of Directors.

It must also be noted that Ironwood may, for any or no reason, and at any time until the proposed separation is complete, cancel the separation or change its terms.

This transaction is believed to be tax-free to Ironwood's shareholders, and is expected to close in the first half of 2019. The Company intends to provide an update on the impact of transaction charges in its 2018 guidance during its Q2 FY18 investor update.

Stock Performance Snapshot

May 02, 2018 - At Wednesday's closing bell, Ironwood Pharma's stock rose 1.18%, ending the trading session at $18.91.

Volume traded for the day: 4.10 million shares, which was above the 3-month average volume of 1.40 million shares.

Stock performance in the last month – up 30.23%; previous three-month period – up 27.68%; past twelve-month period – up 18.78%; and year-to-date - up 26.15%

After yesterday's close, Ironwood Pharma's market cap was at $2.59 billion.

The stock is part of the Healthcare sector, categorized under the Drugs - Generic industry.

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