RedHill Biopharma

US: RDHL

$207.1m market cap

$7.3 last close

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

Investment summary

RedHill’s Q219 results released on 23 July 2019 described steady progress across its pipeline, with TALICIA the centre of attention as the PDUFA date (2 November 2019) approaches. Based on the data released, we assign a high likelihood of FDA approval due to the clean dataset from the Phase III trials. From a commercial perspective, RedHill also appears to be ready with a US team in operation since mid-2017. Although potential approval and launch of TALICIA will dominate H219 newsflow, other notable R&D developments include initiation of the pivotal Phase III trial with RHB-204 in NTM infections and a meeting with the FDA to discuss further development of RHB-104 in Crohn’s disease. Our valuation is virtually unchanged.

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 10.0 (39.5) (39.5) (13.93) N/A N/A
2020E 13.0 (36.7) (36.8) (12.97) N/A N/A
Last updated on 21/08/2019
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 21/08/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (US$m) 16.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (9.9) (3.3) 8.0
Relative* (8.3) (5.3) 5.7
52-week high/low US$9.3/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

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