Ironwood Pharmaceuticals announced that its Board of Directors has authorized an intent to separate into two independent, publicly traded companies. The separation is expected to be completed in the first half of 2019 and is anticipated to be tax-free to Ironwood shareholders. Following the separation, Ironwood anticipates being a profitable company, building on its commercial success to-date to accelerate growth of its in-market products and advance development programs targeting treatments for gastrointestinal diseases, uncontrolled gout, and abdominal pain. R&D Co. will harness the pioneering work in cyclic guanosine monophosphate pharmacology to advance an innovative sGC pipeline expected to focus on the treatment of serious and orphan diseases, led by Phase II clinical compounds praliciguat and olinciguat. Ironwood believes the planned separation will create, among other things: two nimbler, more productive businesses with strengthened competitive positions, separate and distinct management teams focused on each business’s unique strategic priorities, target markets, and corporate development opportunities, specifically tailored capital allocation strategies for each company, and sharpened investment theses that attract a long-term shareholder base suited to each business. Ironwood’s assets are expected to continue to include its three in-market products and two development candidates targeting GI diseases and abdominal pain. Ironwood anticipates being profitable with strong revenue growth from its in-market products following the separation. It also intends to develop and commercialize its core pipeline candidates. Following the separation, we believe Ironwood will be profitable beginning in 2019 with the ability to tailor capital allocation to the growth of the commercial business. R&D Co.’s assets are expected to initially include numerous sGC stimulator programs targeting serious and orphan diseases, such as praliciguat in Phase II for heart failure with preserved ejection fraction and for diabetic nephropathy, olinciguat in Phase II targeting sickle cell disease and achalasia, and tissue-targeted sGC stimulators, including IW-6463 in development for severe central nervous system diseases and other discovery programs targeting severe liver and lung diseases. Ironwood plans to have separate Boards and management teams for each business with specific details provided at a later date. The company intends to transition employees to the new businesses as the organization design is completed over the coming months. After separation, the commercial business will continue to be named Ironwood with the name of R&D Co. to be announced at a later date. Both businesses are anticipated to be headquartered in Cambridge, MA. Ironwood expects to incur charges related to the transaction. As a result, Ironwood plans to provide an update on the impact of the transaction charges on its 2018 financial guidance during the company’s second quarter 2018 investor update.