RedHill Biopharma

US: RDHL

Market Cap$322.4m

Last Close -9.14

RedHill Biopharma focuses on gastrointestinal (GI) and infectious diseases, promoting several GI products in the US. The commercial portfolio includes Movantik (opioid-induced constipation), Talicia (H. pylori eradication) and Aemcolo (TD). RedHill also has a rapidly progressing COVID-19 R&D programme.

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Investment summary

RedHill’s COVID-19 programme is progressing well with two clinical trials ongoing, a Phase II study (n=40) in the US and an international Phase II/III study (n=270). If results are promising, RedHill plans to apply for emergency use authorisation as soon as possible. The commercial highlight this year was the acquisition of Movantik (for opioid-induced constipation) from AstraZeneca on 1 April 2020. Q220 was the first full quarter of RedHill promoting Movantik with booked sales of $20.9m (AstraZeneca’s reported sales of $96m in FY19). RedHill is also ramping up the promotion of its other GI drugs, Talicia for H. pylori eradication and Aemcolo for travellers’ diarrhoea. Our valuation of RedHill is $601m or $16.2 per ADS.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2018A 8.4 (39.2) (38.8) (16.8) N/A N/A
2019A 6.3 (42.0) (42.1) (14.2) N/A N/A
2020E 105.0 2.5 2.3 0.5 1828.0 N/A
2021E 137.0 3.4 3.2 0.6 1523.3 528.9
Content on RedHill Biopharma
RedHill Biopharma – Edison Open House interview
Healthcare | Edison TV | 3 February 2021
RedHill Biopharma – EKF interview
Healthcare | Edison TV | 11 November 2020
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Share price graph
Balance sheet
Forecast net debt (US$m) 41.2
Forecast gearing ratio (%) 54
Price performance
%
1m
3m
12m
Actual 8.8 4.7 82.4
Relative* 6.3 (6.2) 55.0
52-week high/low US$10.8/US$3.5
*% relative to local index
Key management
Dror Ben-Asher CEO
Micha Ben Chorin CFO
Gilead Raday Chief Operating Officer
Guy Goldberg Chief Commercial Officer