RedHill Biopharma - Rapid COVID-19 Ph II/III programme progress

RedHill’s COVID-19 programme is progressing well with two clinical trials ongoing, a Phase II study (n=40) in the US and an international Phase II/III study (n=270). If results are promising, RedHill plans to apply for emergency use authorisation as soon as possible. The commercial highlight this year was the acquisition of Movantik (for opioid-induced constipation) from AstraZeneca on 1 April 2020. Q220 was the first full quarter of RedHill promoting Movantik with booked sales of $20.9m (AstraZeneca’s reported sales of $96m in FY19). RedHill is also ramping up the promotion of its other GI drugs, Talicia for H. pylori eradication and Aemcolo for travellers’ diarrhoea. Our valuation of RedHill is $601m or $16.2 per ADS.