Ironwood wins FDA label expansion for bowel disease drug developed with AbbVie

The U.S. Food and Drug Administration on Wednesday approved Linzess (linaclotide), developed by Ironwood Pharmaceuticals (IRWD) and AbbVie (ABBV), for children with irritable bowel syndrome with constipation (IBS-C), expanding its label further. Shares of Ironwood (IRWD) climbed ~17% after the FDA announced the decision.

The once-daily capsule was previously approved in the U.S. for adults with IBS-C or chronic idiopathic constipation.

As per the new label, it will also be indicated for children seven years and older with IBS-C, marking the first U.S. treatment option for pediatric patients with the condition.

In August, Ironwood (IRWD) set its full-year net sales outlook for Linzess at $800M – $850M. Late October, shares of the Boston, Massachusetts-based biotech surged after AbbVie (ABBV) reported $315M in U.S. sales for Linzess, implying ~40% YoY growth and well exceeding the consensus estimates.

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