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Ironwood Paying $1bn For VectivBio To Extend Its GI Franchise Beyond Linzess

Phase III Data For Apraglutide Due In Late 2023

 
• By Mandy Jackson

Ironwood said it believes VectivBio’s once-weekly GLP-2 analog apraglutide is differentiated from Takeda’s once-daily Gattex in short bowel syndrome and could generate $1bn in peak sales.

White jigsaw puzzle pieces connecting together on a light blue background
Ironwood sees VectivBio's apraglutide as a good fit in its gastrointestinal portfolio • Source: Shutterstock

Ironwood Pharmaceuticals, Inc. believes it has a clear winner on its hands with apraglutide for short bowel syndrome with intestinal failure (SBS-IF), and with its acquisition of VectivBio Holding AG, the company is betting $1bn that the next-generation GLP-2 analog will best Takeda Pharmaceutical Co. Ltd.’s first-generation Gattex (teduglutide).

Boston-based Ironwood announced on 22 May that it will pay $17 per share for VectivBio, an 80% premium to the Swiss biotechnology firm’s US volume-weighted average share price during the previous 90 trading days. Ironwood will fund the transaction, which is expected to close in the second half of 2023, through a combination of cash and funding from a four-year, $500m revolving credit facility

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