Redhill Biopharma Ltd. (NASDAQ:RDHL) shares are up on Monday as investors react to the company’s divestment of Talicia and the cash-and-milestones structure tied to that deal.
RDHL Stock Jumps After Talicia Divestment To Apotex
Redhill says it is divesting Talicia to Apotex for $18 million in upfront cash plus additional milestone payments, framing the move as a key step in its strategic roadmap to reposition its commercial business toward larger product opportunities and revenue growth.
"This transaction is a pivotal milestone for RedHill. We are converting our 70% stake in Talicia into immediate capital, significantly stronger liquidity and meaningful potential upside, while fully funding the next major step in our commercial business expansion. I want to thank the RedHill team for developing and positioning this important product for success, targeting H. pylori infection, the main cause of gastric cancer and stomach ulcers," said Dror Ben-Asher, RedHill’s CEO.
In January, RedHill Biopharma shared development progress for RHB-102 (Bekinda) in multiple gastrointestinal (GI) indications, including its development via the accelerated FDA 505(b)(2) route, as a once-daily oral ondansetron therapy for GLP-1/GIP receptor agonist therapy-associated GI side effects.
RHB-102 is a patent-protected bimodal, immediate and extended-release, once-daily oral formulation of the 5-HT3 antagonist ondansetron.
RDHL Stock Price Activity: Redhill shares are up a whopping 95.17% to $1.29 at the time of publication on Monday. Trading volume is buzzing with 68.7 million shares moving around.
The stock is sitting 53.8% below its 52-week high, according to Benzinga Pro data.
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