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AstraZeneca to gain full rights to Ironwood's stomach disorder drug in China

Ironwood Pharmaceuticals Inc. fully sold the Chinese rights to stomach disorder drug Linzess to AstraZeneca PLC.

The companies had been developing the medicine in partnership for the Chinese market since 2012 on a cost-sharing basis. The drug, also known as linaclotide, was approved in China earlier this year to treat irritable bowel syndrome with constipation, or IBS-C, and is expected to be launched later in 2019. Linaclotide is already approved to treat adults with IBS-C or chronic idiopathic constipation in the U.S. and more than 30 other countries.

U.K.-based pharmaceutical giant AstraZeneca has now obtained exclusive rights to develop, manufacture and commercialize linaclotide in China, including Hong Kong and Macau. Ironwood will no longer jointly fund the development and commercialization of the medicine.

In return, Cambridge, Mass.-based Ironwood will receive up to $125 million, including non-contingent and commercial milestone payments. Ironwood will also receive royalties based on the net sales of the drug in the region.

Ironwood CEO Mark Mallon said the amended collaboration reflects the company's strategy to focus its efforts in the U.S. and streamline its business.

Linaclotide is sold under the brand name Linzess in the U.S. by Allergan PLC and Ironwood. Allergan sells the drug under the name Constella in Europe and has the rights to develop and market the medicine in most of the world countries. Mylan NV may launch generic versions of Linzess in the U.S. in 2030.

Astellas Pharma Inc. has the exclusive rights to develop and commercialize linaclotide in Japan.