RedHill Biopharma - Commercial stage, GI-focused R&D pharma

2017 saw RedHill transformed from a pure drug developer into a commercial-stage, revenue-generating, specialty pharma company focused on gastrointestinal (GI) indications. During 2017, it began marketing three GI products in the US and we expect a rapid sales build-up. Two other important share price catalysts in 2018 will be the data readouts from two Phase III trials – RHB-104 for Crohn’s disease (CD) and TALICIA for H. pylori infection. Following several modifications to our NPV aligning with RedHill’s latest R&D update, we value the company at $410m or $19.2/ADS (vs $21.1/ADS).