Having tasted blockbuster success with its irritable bowel syndrome (IBS) drug Linzess, Ironwood Pharmaceuticals is willing to pay $1 billion for the chance to make lightning strike twice.
The all-cash transaction will see Ironwood put up $17 per share of VectaBio to acquire the Swiss biotech at an 80% premium on the company’s average trading price over the last 90 days. To foot the bill, Ironwood will draw on its cash on hand as well as a four-year $500 million credit facility set up specifically for this purpose.