Ap­peas­ing ac­tivist in­vestors, Iron­wood cuts 40 staffers at the start of com­pa­ny split

Ear­li­er this year, ac­tivist in­vestors pressed on Iron­wood to shape up, re­sult­ing in a plan to slice the com­pa­ny in­to two parts. Now, Iron­wood is divvy­ing up staff and trim­ming the ex­cess, cut­ting 40 jobs along the way.

Un­der pres­sure from Alex Den­ner and his com­pa­ny Saris­sa Cap­i­tal, Iron­wood said back in May that it would soon split in­to two com­pa­nies: spin­ning out a pipeline of ear­ly- and mid-stage drugs in­to a sep­a­rate, pub­licly trad­ed biotech com­pa­ny while keep­ing its mar­ket­ed prod­ucts and re­lat­ed de­vel­op­ment projects in-house at a scaled down, and more prof­itable, moth­er com­pa­ny.

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