Ironwood Pharmaceuticals and Astellas sign licensing agreement

Ironwood Pharmaceuticals, a US-based pharmaceutical company, and Astellas Pharma, a Japanese pharmaceutical company, have entered into an agreement providing Astellas exclusive rights to develop and commercialize the investigational compound linaclotide in Japan, Indonesia, Korea, the Philippines, Taiwan, and Thailand.

Under the terms of the agreement, Astellas would pay Ironwood $75 million in upfront and pre-commercial milestones, including a $30 million licensing fee, as well as escalating royalties on linaclotide sales. Astellas will lead clinical development in Japan and be responsible for all activities and expenses relating to clinical development, regulatory approval, and commercialization in the above mentioned territory.

Linaclotide is currently in Phase III clinical development in the US for the treatment of irritable bowel syndrome with constipation and chronic constipation.