Sources inform ''Globes'' that Redhill Biopharma Ltd. is expected to raise $4-5 million from private investors ahead of an IPO on the Tel Aviv Stock Exchange (TASE). The company, run by CEO Dror Ben-Asher, plans to hold the IPO by the end of the year.
RedHill's current US, European, and Israeli investors are due to participate in the upcoming financing round. Afterwards, the company plans to achieve a company value of NIS 150 million for the IPO.
RedHill develops and commercializes drugs in advanced clinical trials. Last week, the company today announced its third transaction in recent months. It acquired the worldwide rights to market and sell ondansetron tablets, from SCOLR Pharma Inc. (AMEX: DDD). Oondansetron hydrochloride is the active ingredient in Zofran, GlaxoSmithKline plc's (NYSE; LSE: GSK) drug for the prevention of chemotherapy and radiation related nausea and vomiting.
RedHill will make an up front and additional payments to SCOLR of up to $600,000 based on achievement of certain regulatory milestones and the first commercial sale of the product, and afterwards pay up to a maximum of $30 million based on the aggregate net sales by RedHill of the licensed product over a ten year period.
Published by Globes [online], Israel business news - www.globes-online.com - on May 9, 2010
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