Ironwood ends gout drug deal with AstraZeneca

Shares in Ironwood Pharmaceuticals (Nasdaq: IRWD) closed 4% down on Monday after the US biotech announced that it was ending its agreement with AstraZeneca (LSE: AZN) over lesinurad, a gout drug marketed under the name Zurampic.

The deal gave Ironwood US rights to the treatment, which was approved by the Food and Drug Administration (FDA) in late 2015, but sales since then have been flimsy and it earned the company just $1.1 million in sales in the second quarter of this year.

Peter Hecht, chief executive officer of Ironwood, said: “After initiating the lesinurad market tests in early 2018 and assessing the results in July, we have decided to terminate our licensing agreement with AstraZeneca in its entirety. This action is not taken lightly, but it is an important decision that we believe enables us to allocate capital to the highest return opportunities and drive growth. We are working to maintain appropriate availability of lesinurad for patients and physicians during the termination period.”