said Monday it was acquiring Swiss biotech company
adding to the increasing line of biopharma acquisitions this year.
The all-cash transaction for $17 a share totals an estimated $1 billion, net of cash and debt, offering
(ticker: VECT) shareholders an 80% premium to its average share price over the past 90 days.
Ironwood’s stock (IRWD) tumbled 3.4% in premarket trading, while VectivBio was up 38% at $16.68.
The deal helps Ironwood expand its pipeline of drugs that can advance the treatment of gastrointestinal diseases, the companies said.
Specifically, VectivBio’s investigational medicine apraglutide is of interest. Apraglutide works to treat short bowel syndrome-associated intestinal failure and is presently being studied. Ironwood, which is known for the irritable bowel drug Linzess, sees a $1 billion peak net sales opportunity with VectivBio.
Ironwood’s deal adds to the about $71 billion worth of deals that have been announced in the healthcare and life sciences space in the first quarter, doubling last year’s $28 billion value, according to KPMG.
Write to Karishma Vanjani at email@example.com