RedHill Biopharma

US: RDHL

$239.5m market cap

$6.79 last close

RedHill Biopharma focuses on gastrointestinal diseases and promotes several GI products in the US. The commercial portfolio includes Movantik (opioid-induced constipation), Talicia (H. pylori eradication) and Aemcolo (TD). The most advanced R&D assets are RHB-204, RHB-104 and BEKINDA.

Investment summary

RedHill is marketing Talicia (RHB-105) for H. pylori infection (approved by the FDA in November 2019, launched in March); Movantik (2019 US sales of $96m) for opioid-induced constipation; and Aemcolo, a minimally-absorbed antibiotic formulation approved by the FDA for travellers’ diarrhoea (TD). The R&D pipeline includes RHB-204 for pulmonary non-tuberculous mycobacteria (NTM) infections (pivotal Phase III study planned to start in Q320); RHB-104 for Crohn’s disease (positive top-line results from first Phase III announced in July 2018); BEKINDA for both gastroenteritis (positive results from first Phase III announced in June 2017) and IBS-D (positive final Phase II results announced in January 2018). RedHill is also exploring its opaganib for COVID-19 with IND approved by the FDA and a Phase IIa study is being initiated.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 8.4 (39.2) (38.8) (16.79) N/A N/A
2019A 6.3 (42.0) (42.1) (14.17) N/A N/A
2020E 93.0 (9.5) (9.7) (2.71) N/A N/A
2021E 137.0 3.4 3.2 0.67 1013.4 380.9
Industry outlook

RedHill’s main focus includes a range of gastrointestinal conditions. Although they 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 02/07/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (US$m) 25.5
Forecast gearing ratio (%) 43
Price performance
%
1m
3m
12m
Actual (4.9) 31.1 5.1
Relative* (6.4) 5.8 (0.2)
52-week high/low US$8.6/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

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