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Ironwood Announces Linaclotide European Licensing Agreement with Almirall
Date:5/4/2009

- Ironwood Will Receive Up To $55 Million in Near Term Payments -

CAMBRIDGE, Mass., May 4 /PRNewswire/ -- Ironwood Pharmaceuticals, Inc. today announced that the company has entered into an out-licensing agreement with Laboratorios Almirall, S.A. for European rights to develop and commercialize the investigational compound linaclotide for the treatment of irritable bowel syndrome with constipation (IBS-C) and other gastrointestinal conditions. This agreement is a continuation of Ironwood's strategy to develop and market its products in the United States while forming partnerships to accelerate delivery to patients in other territories.

(Logo: http://www.newscom.com/cgi-bin/prnh/20081006/NEM080ALOGO )

Under the terms of the agreement, Almirall will provide Ironwood with up to $55 million in near-term payments, including a $40 million upfront licensing fee. Pre-commercial licensing fees and milestone payments total $95 million. In addition, Ironwood will receive escalating royalties on linaclotide sales. Almirall will be responsible for activities relating to regulatory approval and commercialization, as well as expenses for the European market. Ironwood continues to retain all rights to linaclotide outside of North America and Europe.

"We are very pleased to be joining forces with Almirall to develop and commercialize linaclotide for the millions of patients in Europe who suffer from IBS-C and currently lack adequate therapies. Almirall presented us with the best strategy to rapidly and effectively deliver linaclotide to the market, and terms that, should linaclotide meet our expectations, allow us to share approximately half of the long term value of the product," said Peter Hecht, Ironwood's chief executive office
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SOURCE Ironwood Pharmaceuticals, Inc.
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