RedHill Biopharma

US: RDHL

$130.2m market cap

$7.63 last close

RedHill Biopharma is a specialty pharma company with a broad R&D pipeline focusing on gastrointestinal and inflammatory diseases and also promotes four GI products in the US. The most advanced programs are TALICIA (RHB-105) for H. pylori infection, RHB-104 for Crohn’s disease, BEKINDA for gastroenteritis and IBS-D, and RHB-204 for NTM.

Investment summary

On 3 December, RedHill announced positive top-line data for its second Phase III study for TALICIA in first-line Helicobacter pylori infection. With the focus now on final data, expected NDA submission (H119), approval and launch (potentially H219), TALICIA is one of the key value drivers for RedHill in the short term. The December share issue of $20m should ensure a smooth TALICIA launch, provide working capital for a pivotal Phase III nontuberculous mycobacteria trial, preparation for a Phase III trial in Crohn’s disease and support the commercial US organisation. Our updated valuation is $491m (NIS1.82bn), or $17.3/ADS (NIS6.4/sh).

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 4.0 (51.9) (45.5) (25.79) N/A N/A
2018A 8.4 (39.2) (38.8) (16.79) N/A N/A
2019E N/A N/A N/A N/A N/A N/A
2020E N/A N/A N/A N/A N/A N/A
Last updated on 23/05/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (US$m) 28.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (4.5) (1.7) 9.3
Relative* (0.7) (2.7) 5.9
52-week high/low US$11.3/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