Investors irked by Ironwood cuts to future-proof company

Boston-based biotech Ironwood Pharmaceuticals (Nasdaq: IRWD) had lost 38% of its market value by Thursday’s close.

Investors were reacting to strategy announcements at the firm, including cutting its workforce by half and ending the development of its drug apraglutide in graft-versus-host disease so that the company can focus on the candidate’s progress in short bowel syndrome (SBS) patients who are dependent on parenteral support.

Ironwood expects to incur restructuring charges of approximately $20 to $25 million, primarily in the first half of 2025, before realizing approximately $55 to $60 million of annual operating expense savings from the reorganization.