Biotech · Trading Alert NASDAQ: RDHL
Shares surged after RedHill divested its Talicia gastrointestinal business to a subsidiary of Apotex Health Corp. for $18 million upfront, with up to $35 million more in milestone payments.
Investorideas.com (www.investorideas.com) a trusted platform for investing ideas, including biotech and medical tech stocks, issues a news and trading alert for RedHill Biopharma Ltd. (NASDAQ: RDHL), a specialty biopharmaceutical company.
The stock makes the Nasdaq top percentage gainer list following breaking news of divestment of its Talicia business. The stock is trading at 1.0500 +0.3890 (+58.85%) on volume of over 91 Million shares as of this report. The stock has a morning high of $1.60.
RedHill Biopharma announced the divestment of its Talicia business to a subsidiary of Apotex Health Corp. (TSX: APTX) for an upfront payment of $18 million plus up to an additional $35 million in potential payments based on worldwide net sales milestones.
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“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 Chief Executive Officer. “We are confident that given its proven capabilities, Apotex is the right home to grow Talicia globally. We thank Apotex for their partnership on the successful conclusion of this transaction, which unlocks the resources needed to scale RedHill’s existing gastrointestinal (GI) commercial franchise into a stronger and larger one, including new, high-value, FDA-approved product opportunities intended to drive sustained growth and accelerate our path toward operational profitability.”
Under the terms of the agreement, RedHill received $18 million in cash and has the potential to receive up to an additional $35 million in payments based on worldwide net sales milestones from Apotex. In return, Apotex will receive RedHill’s 70% interest in Talicia, following Apotex’s prior acquisition of Cumberland Pharmaceuticals Inc.’s U.S. branded business, which included Cumberland Pharmaceuticals Inc.’s 30% ownership in Talicia.
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