Ironwood unveils Japanese licensing agreement

Ironwood Pharmaceuticals Inc. of Cambridge said that a Japanese company will pay it $75 million in upfront and pre-commercial milestone payments for the exclusive rights to develop and commercialize an Ironwood drug candidate in certain countries in Asia.

The Japanese company is Astellas Pharma Inc., and the deal gives Astellas the rights to develop and commercialize linaclotide in Japan, Indonesia, Korea, the Philippines, Taiwan, and Thailand, Ironwood Pharmaceuticals said in a press release.

"Linaclotide is currently in Phase 3 clinical development in the United States for the treatment of irritable bowel syndrome with constipation and chronic constipation," Ironwood Pharmaceuticals said of its drug candidate.

Financial terms of the agreement call for Astellas to pay Ironwood Pharmaceuticals a $30 million licensing fee as well as milestone payments and escalating royalties on linaclotide sales, said a press release, which also noted that Ironwood has raised $306 million in private equity financing.

In a statement, Ironwood chief executive Peter Hecht said of the deal, "This collaboration continues Ironwood's strategy to form partnerships to develop and commercialize linaclotide in the top three pharmaceutical markets: the U.S., Europe, and Japan, while enabling Ironwood to retain potentially 50 percent of the long-term global value of linaclotide in those key regions, should linaclotide meet our sales expectations." (Globe Staff)