Ironwood Pharmaceuticals' IPO: Underwriters exercise over-allotment option

Ironwood PharmaceuticalsFeb 17 2010

Ironwood Pharmaceuticals, Inc. (NASDAQ: IRWD) today announced that the underwriters of its February 2, 2010 initial public offering (IPO) have exercised their over-allotment option in full on an additional 2.5 million shares of Ironwood’s Class A common stock. With the completion of the IPO and the exercise of the over-allotment option, Ironwood has approximately 97.4 million shares of common stock outstanding (approximately 19.2 million shares of Class A common stock and 78.2 million shares of Class B common stock). On a fully diluted basis, Ironwood has approximately 119.8 million shares of common stock outstanding, including 22.4 million shares available for issuance under outstanding options or for future grants under Ironwood's existing equity plans.

Including proceeds from the exercise of the over-allotment option, net proceeds to Ironwood from the initial public offering are $203 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by Ironwood. Following the initial public offering, Ironwood has $320 million cash on hand. Ironwood intends to utilize these cash resources to develop and commercialize linaclotide in the U.S. with its partner Forest Laboratories, to invest in additional research and development efforts, and for general corporate purposes.

The joint book-running managers of the initial public offering were J.P. Morgan Securities Inc., Morgan Stanley & Co. Incorporated, and Credit Suisse Securities (USA) LLC. The co-managers were BofA Merrill Lynch and Wedbush PacGrow Life Sciences.

A registration statement relating to Ironwood’s Class A common stock was declared effective by the Securities and Exchange Commission (SEC) on February 2, 2010.