RedHill Biopharma has divested its 70% interest in the Talicia business to a subsidiary of Apotex Health for $18 million in upfront cash, plus up to $35 million in potential worldwide net sales milestone payments.
The transaction gives RedHill immediate liquidity and could yield up to $53 million in total consideration if all applicable sales milestones are achieved.
RedHill said the proceeds will fund the next stage of its commercial expansion and support efforts to broaden its gastrointestinal product portfolio.
Talicia targets H. pylori infection, which RedHill described as the leading cause of gastric cancer and stomach ulcers.
The transaction monetizes RedHill’s 70% economic interest in Talicia.
Apotex previously acquired Cumberland Pharmaceuticals’ U.S. branded business, which included Cumberland’s 30% ownership interest in Talicia. Under the new transaction, Apotex receives RedHill’s remaining 70% interest.
RedHill plans to use the strengthened liquidity position to pursue what it describes as larger commercial opportunities, including potential new high-value FDA-approved products.
The company is aiming to scale its existing gastrointestinal commercial franchise while accelerating its path toward operational profitability.
Beyond its commercial portfolio, RedHill continues developing several clinical-stage programs.
Its pipeline includes opaganib across infectious disease, radiation exposure and oncology applications; RHB-102, or Bekinda, for gastrointestinal indications including potential GLP-1/GIP-associated intolerance; RHB-204 for Crohn’s disease; and RHB-107 for pandemic preparedness and other indications.
Morningstar Law Group and Greenberg Traurig advised RedHill on the Talicia transaction.
KEY QUOTE:
“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.”
Dror Ben-Asher, CEO Of RedHill Biopharma
