RedHill Biopharma

US: RDHL

$175.9m market cap

$6.2 last close

RedHill Biopharma is a specialty pharma company focusing on gastrointestinal and inflammatory diseases and also promotes several GI products in the US. The most advanced programs are TALICIA (approved by the FDA) for H. pylori infection, RHB-104 for Crohn’s disease, BEKINDA for gastroenteritis and IBS-D, and RHB-204 for NTM.

Investment summary

On 22 November 2019, RedHill held an investor and analyst day in New York with the focus on the two new products about to be launched in the US. Talicia and Aemcolo are to be launched imminently (Q419 and Q120 respectively) and could be major products for RedHill. From a commercial perspective, this makes 2020 a potentially transformative year for RedHill, and good sales uptake could be a positive catalyst for the stock. The recent strategic investment of $36.3m by Cosmo Pharmaceuticals means that RedHill has a comfortable cash position to ramp up its US salesforce to optimise the launch. Our valuation is slightly higher at $575m or $16.3 per ADS.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 4.0 (51.9) (45.5) (25.79) N/A N/A
2018A 8.4 (39.2) (38.8) (16.79) N/A N/A
2019E 7.0 (42.1) (42.1) (10.88) N/A N/A
2020E 20.3 (48.1) (48.2) (11.42) N/A N/A
Industry outlook

RedHill’s main focus on GI and inflammation include a range of conditions, which although can be treated with a variety of innovative and established products, there is still an unmet need in each of the diseases. In our view, carefully positioned, innovative solutions for the patients will attract attention.

Last updated on 11/12/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (US$m) 51.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (2.8) (21.8) (11.4)
Relative* (4.5) (25.3) (25.7)
52-week high/low US$9.0/US$5.2
*% relative to local index
Key management
Dror Ben-Asher CEO
Micha Ben Chorin CFO
Gilead Raday Chief Operating Officer
Guy Goldberg Chief Commercial Officer

Content on RedHill Biopharma