RedHill buys AstraZeneca constipation drug rights

Dror Ben-Asher

The Israeli drug developer will pay $67.5 million for Movantik, which treats opioid-induced constipation.

Israeli drug developer RedHill Biopharma Ltd. (Nasdaq: RDHL); TASE: RDHL) has bought the global rights (excluding Europe) from AstraZeneca for the Movantik treatment of gastrointestinal diseases (GI) for $67.5 million.

RedHill CEO Dror Ben-Asher said, "The acquisition of Movantik is a transformative event for RedHill. We would like to thank AstraZeneca for entrusting us with this important product. Along with the planned launch of Talicia later this quarter and the ongoing promotion of Aemcolo to gastroenterologists, primary care physicians and other specialists, the acquisition of Movantik further positions RedHill as an emerging GI-focused leader."

Movantik is a peripherally acting mu-opioid receptor antagonist (PAMORA) indicated for the treatment of opioid-induced constipation (OIC) in adults with chronic non-cancer pain, including patients with chronic pain related to prior cancer or its treatment who do not require frequent opioid dosage escalation. In 2019, Movantik generated net sales of $96 million in the US. RedHill’s sales force is expected to increase to 150 representatives and will promote Movantik to gastroenterologists, primary care physicians, and additional specialists.

The acquisition of Movantik will be financed by a non-dilutive, royalty-backed term loan from HealthCare Royalty Partners (HCR), as part of the previously announced $115 million non-dilutive financing by HCR to support RedHill’s US commercial operations.

Under the terms of the license agreement, RedHill will make an upfront payment of $52.5 million to AstraZeneca upon closing and a further non-contingent payment of $15 million 18 months post-closing. RedHill will also assume financial responsibility for sales-based royalty and potential milestone payments that AstraZeneca is required to pay to Nektar Therapeutics, the originator of Movantik.

Published by Globes, Israel business news - en.globes.co.il - on February 25, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Dror Ben-Asher
Dror Ben-Asher
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