RedHill Biopharma files for $116m Nasdaq offering

Dror Ben-Asher Photo: Arik Soltan

The company is scheduled to publish the results of its trials for its main drug in the coming weeks.

RedHill Biopharma Ltd. (Nasdaq: RDHL); TASE: RDHL), which develops and markets drugs for the digestive tract, has published a shelf prospectus for raising $116 million. The prospectus is being published as the market awaits the results of the company's leading trial of its drug for Crohn's Disease, slated for publication in the coming weeks - market rumors say in the next few days. RedHill previously stated that it would not raise capital before publishing the prospectus, but it is very likely that the company will raise money immediately after publishing the trial results, especially if the results boost its share price. RedHill's quarterly results are scheduled for publication tomorrow.

RedHill's share price is down in trading, with its market cap reaching NIS 730 million on the TASE ($203 million).

Even after publication of the trial results, if the trials prove successful, the company will probably need another trial for confirmation before it can market its product in the US.

RedHill's revenue from the three digestion products it acquired in the past year, designed to provide a marketing platform for its Crohn's Disease product and another product for treatment of H. pylori bacteria, totaled $2.4 million in the first quarter of 2018. The company's operating loss was $10 million and its cash burn rate was $9.5 million. RedHill had $35 million in cash as of the end of the first quarter.

RedHill's CEO is Dror Ben-Asher.

Published by Globes [online], Israel business news - - on July 23, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Dror Ben-Asher Photo: Arik Soltan
Dror Ben-Asher Photo: Arik Soltan
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