Benzinga | Feb 9, 2021 04:58AM EST

Ironwood CEO Steps Down Months After Clinical Trial Failure, Names Thomas McCourt As Interim Chief Executive

* Ironwood Pharmaceuticals Inc's (NASDAQ: IRWD) chief executive officer, Mark Mallon, will step down, effective March 12, "to pursue another leadership opportunity," less than two years after he took the top job.

* Thomas McCourt, Ironwood's president, will serve as interim CEO, effective Mr. Mallon's departure. Julie McHugh, Ironwood's Board chair, will become executive chair effective upon Mr. Mallon's departure.

* Ironwood suffered a significant setback in September last year when it said it would lay off 35 percent of its staff, or around 100 employees, and shelving an experimental acid reflux drug, IW-3718, after it failed to reduce the severity of heartburn in a key clinical trial.

* IW-3718 was the only one under development in Ironwood's pipeline. Another drug that would have treated abdominal pain associated with irritable bowel syndrome was discontinued following another trial failure in May.

* Price Action: IRWD shares closed 3.4% higher at $10.66 on Monday.