Ironwood Pharmaceuticals Inc. and Allergan PLC agreed to geographically expand an existing license that provides for the commercialization of Linaclotide for the treatment of irritable bowel syndrome with constipation.
The 2009 agreement allowed Allergan to commercialize the treatment in Europe but is now being amended to include all geographies except China, Japan and the North America.
Allergan is required to make royalty payments on sales of the drug in the additional geographies.
Ironwood is also foregoing its share of profits from the sale of Linaclotide in North America in exchange for receiving royalties on the sale of Canasa and Delzicol in the U.S.
Allergan has engaged Ironwood to promote the drugs for the two-year period ending Feb. 26, 2019.