Ironwood Pharmaceuticals (NASDAQ:IRWD) is down 6% premarket on light volume on the heels of its announcement that its board has authorized the separation of the company into two publicly traded firms, one focused on commercialization and the other on R&D, in H1 2019. The move should be tax-free to current shareholders.
Ironwood will focus on commercializing its currently marketed products and the development of its gastrointestinal, gout and abdominal pain pipeline. It is expected to be profitable in 2019.
The R&D company will focus on cyclic guanosine monophosphate pharmacology to advance a pipeline of treatments for rare and serious diseases led by mid-stage candidates praliciguat and olinciguat.
The company expects to record charges related to the transaction. It will update investors on the impact during its Q2 earnings call.
Now read: Premarket analyst action - healthcare »
Subscribe for full text news in your inbox