Ironwood agrees to buy VectivBio in $1bn deal
Ironwood Pharmaceuticals Inc.
$3.38
05:45 22/11/24
Ironwood Pharmaceuticals has agreed to buy Swiss biotech VectivBio Holding in a deal worth $1.15bn.
The US firm said on Monday that it has agreed to pay $17 per share for the Basel-based firm, a premium of around 43% premium to VectivBio’s last closing share price
The all-cash deal will give Ironwood access to VectivBio’s pipeline of novel treatments for severe and rare gastrointestinal (GI) conditions like Short Bowel Syndrome with Intestinal Failure (SBS-IF).
Its main asset is apraglutide, which Ironwood said had the potential to reach $1bn in peak net sales. Apraglutide is currently in phase 3 studies.
Tom McCourt, Ironwood chief executive, said: "This acquisition of VectivBio, including its competing asset apraglutide, is an ideal strategic fit.
"With the success of our blockbuster product Linzess, we have built a strong GI commercial function, healthy cash flow generation and meaningful earnings before interest, tax, depreciation and amortisation.
"We are confident that with our GI expertise, commercial capabilities and robust balance sheet we are well-positioned to continue developing apraglutide."
Linzess is used to treat irritable bowel syndrome with constipation as well as chronic constipation.
Luca Santarelli, chief executive and founder of VectivBio, said Ironwood was "the ideal company to bring apraglutide, if approved, to patients suffering from SBS-IF and other serious GI conditions".
The deal is expected to close in the second half of 2023.
By 1300 BST, shares in Ironwood were down 3% in pre-market trading, while VectivBio's New York-listed stock was up 38%.