Frost & Sullivan Publishes Q1-2018 and 12 months since Initiation Updates Coverage Report on RedHill BioPharma Ltd.

Wednesday, June 6, 2018 Drug News
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Net revenues for Q1-18 lower than estimated;

TEL AVIV, Israel, June 6, 2018 /PRNewswire/ -- The TASE analysis project was launched in 2016 in order to raise the investors'

level of knowledge of TASE listed technology and life-science companies and the markets in which the companies operate, thus creating appropriate pricing and increasing the exposure of investors from Israel and abroad. Its goal is to encourage investments in these companies by removing the barrier of lacking understanding in the market.

In order to maintain professional, independent and unbiased analysis, the companies signed an agreement with the TASE to receive the analysis services for an obligatory period of two years. The companies cannot withdraw from the project during this period. The analysis is funded by the companies surveyed with funding from the Chief Scientist and the TASE.

Summary of Highlights

On 8 May 2018 RedHill released its financial report for Q1-2018, detailing the following:

  • Important top-line results expected over the next few months
    • Top-line results from Phase III study with RHB-104 for Crohn's disease (MAP US study) expected in approximately 3 months. We analyze the RHB-104 asset in detail, in the following report.
    • Top-line results from confirmatory Phase III study with TALICIA® for H. pylori infection (ERADICATE Hp2 study) expected Q4/2018
  • RedHill continues to present lower quarterly net revenues than expected ($4 miilion) of $2.4 million and gross profit of $1.5 million in Q1-2018.
  • Operating loss of $9.9 million in Q1-2018, reduced 30% over the previous quarter and expected according to the company to continue to decrease over the coming quarters.
    • Debt-free balance sheet with $36.4 million in cash at the end of Q1-2018
  • RedHill announced it does not have plans to raise additional capital ahead of the MAP US Phase III study top-line results with RHB-104 for Crohn's disease. Albeit, the company has a burn rate of approx. $10 million per quarter, and with just $36.4 million in cash RedHill, in our understanding, will need to raise capital within 3-9 months.
  • Current estimation of the company's equity value is retained at $159.8 million (NIS 551.6M) corresponding to a target price ranging between NIS 2.54 and NIS 2.65; a mean of NIS 2.59.
    • In Frost & Sullivan's most recent valuation of 11 March 2018 the target price was raised to to NIS 2.59 from the price of NIS 2.27 set on 14 December 2017.
      • Frost & Sullivan Independent Equity Research's valuation methodology for RedHill BioPharma Ltd. is detailed in full in the Initiation of Coverage report for RedHill dated 12 July 2017.
  • Read the Q1-2018 and 12 months since Initiation Updates in full here.

About the company - RedHill Biopharma Ltd. ("the Company" and/or "RedHill") is an Israeli publically-traded specialty biopharmaceutical company focused on the development and commercialization of late clinical-stage drugs candidates. The Company's main focus is advanced clinical development and commercialization in the US of orally-administered, proprietary, small molecule drugs for the treatment of gastrointestinal and inflammatory diseases and cancer.

RedHill is currently promoting three gastrointestinal products and is advancing multiple clinical programs: three Phase III for gastrointestinal and inflammation indications and multiple Phase II for various indications including multiple myeloma, hepatocellular carcinoma, pancreatic cancer, and irritable bowel syndrome with diarrhea.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us:  Start the discussion


Kristi Cekani  Corporate Communications - Frost & Sullivan, Europe P: +39.02.4851.6133 E:


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