Ironwood Pharmaceuticals to acquire Swiss biotech VectivBio in deal valued at about $1 billion

Ironwood Pharmaceuticals Inc. (IRWD) said Monday it has agreed to acquire Swiss biotech VectivBio Holding AG (VECT) for $17 a share in cash, or a total of about $1 billion, net of VectivBio's cash and debt. The price is equal to a premium of about 80% over the volume-weighted average share price over the previous 90 trading days. VectivBio is a clinical-stage biotech headquartered in Basel and focused on developing treatments for severe, rare conditions, including Short Bowel Syndrome with Intestinal Failure, or SBS-IF, a condition in which the body is unable to absorb nutrients because the small intestine is too short. "SBS-IF is a severe malabsorptive condition requiring ongoing I.V. administration of fluids and nutrients and is associated with significant morbidity and mortality, high economic burden, and an impaired quality of life," the companies said in a joint statement. VectivBio's main investigational therapy apraglutide is a treatment for SBS-IF with data from a Phase 3 trial expected by year-end. Ironwood expects the deal to strengthen its portfolio and boost its per-share earnings by 2026. The deal is expected to close in the second half. VectivBio will hold an extraordinary general meeting of shareholders on June 26 to vote on the deal. VectivBio's stock soared 40% premarket, while Ironwood stock fell 14%.

-Ciara Linnane

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05-22-23 0710ET

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