Ironwood to Focus on GI Diseases, Spins Off Cyclerion Therapeutics

Ironwood Pharmaceuticals, a GI-focused healthcare company, has announced that it has completed the tax-free spin-off of its soluble guanylate cyclase (sGC) business, Cyclerion Therapeutics.

Ironwood is executing on its strategy to drive growth as a GI-focused company, building upon its commercial success with Linzess and advancing its late-stage, first-in-category development candidates including IW-3718 for the potential treatment of persistent gastroesophageal reflux disease (GERD) and MD-7246 for the potential treatment of abdominal pain associated with irritable bowel syndrome with diarrhea (IBS-D). In 2018, Ironwood grew revenue 16% year-over-year to $347 million, driven primarily by U.S. Linzess collaboration revenue of $264 million and linaclotide API sales of $70 million. In 2019, Ironwood expects revenue to be in the range of $370 to $390 million. The company also expects to provide guidance on 2019 non-GAAP profitability from continuing operations on its first quarter 2019 investor update.

Mark Mallon, chief executive officer of Ironwood, stated, “Today marks the beginning of a new chapter for Ironwood, one that combines a strong drug development and commercial foundation with a sharpened focus on our core objective – creating medicines that make a difference for people living with GI diseases. We are well positioned to deliver on our strategic initiatives, which include accelerating growth of Linzess, advancing our GI development portfolio, and generating profits from continuing operations on a non-GAAP basis…”

Cyclerion common stock will begin regular way trading on the Nasdaq Global Select Market under the symbol “CYCN” on April 2, 2019. Ironwood will continue to trade on Nasdaq under the ticker symbol “IRWD.”

As previously announced, the separation was completed through distribution to Ironwood shareholders of one share of Cyclerion common stock for every 10 shares of Ironwood common stock held as of the close of business on March 19, 2019, the record date for the distribution. (Source: Ironwood Pharmaceuticals Website, 01 April, 2019)

For more information about Cyclerion Therapeutics, see following post.