TEL
AVIV, Israel and RALEIGH,
N.C, Feb. 6, 2023 /PRNewswire/ -- RedHill
Biopharma Ltd. (NASDAQ: RDHL) ("RedHill" or the "Company"), a
specialty biopharmaceutical company, today announced the
extinguishment of all RedHill's debt obligations (including all
principal, interest, revenue interest, prepayment premiums and exit
fees) under the Credit Agreement between RedHill's U.S. subsidiary
RedHill Biopharma Inc. and HCR dated February 23, 2020 (as amended) in exchange for
the transfer of its rights in Movantik® (naloxegol) to
Movantik Acquisition Co., an affiliate of HealthCare Royalty
("HCR").
HCR will assume substantially all post-closing liabilities, and
RedHill will retain substantially all pre-closing liabilities
relating to Movantik.
As part of the parties' arrangement, and to ensure continuous
patient care, RedHill will provide HCR with paid transition
services for up to 12 months.
HCR will retain security interests in certain RedHill assets
until substantially all pre-closing liabilities relating to
Movantik have been paid or other specific conditions are met.
Dror Ben-Asher, RedHill's
Chief Executive Officer, said: "Today's announcement marks the
beginning of a new chapter for RedHill as a debt-free company. All
HCR-related debt and debt-overhang have been extinguished, along
with the cost and burden on our cashflow of servicing that debt.
The agreement also generates substantial revenues for RedHill from
Movantik transition services for up to 12 months. We are working
towards adding, in the near term, revenue-generating products to
replace lost Movantik revenues, while maximizing Talicia's and
Aemcolo's potential and advancing development of our late
clinical-stage pipeline, including opaganib for nuclear radiation
protection and COVID-19 and RHB-107 for COVID-19. I am proud of
RedHill for building value in Movantik and congratulate our
commercial team for this impressive achievement. I would like to
thank our legal and financial advisors at Cravath, Swaine &
Moore LLP and Alvarez & Marsal for their support in
successfully bringing this agreement to a close."
About RedHill Biopharma
RedHill Biopharma Ltd. (NASDAQ: RDHL) is a specialty
biopharmaceutical company primarily focused on gastrointestinal and
infectious diseases. RedHill promotes the gastrointestinal drugs
Talicia® for the treatment of Helicobacter
pylori (H. pylori) infection in adults[1], and
Aemcolo® for the treatment of travelers' diarrhea
in adults[2]. RedHill's key clinical late-stage development
programs include: (i) RHB-204, with an ongoing Phase 3
study for pulmonary nontuberculous mycobacteria (NTM) disease; (ii)
opaganib (ABC294640), a first-in-class oral
broad-acting, host-directed SK2 selective inhibitor targeting
multiple indications, with potential for pandemic preparedness,
with a Phase 2/3 program for hospitalized COVID-19, a Phase 2
program in oncology and a radiation protection program ongoing;
(iii) RHB-107 (upamostat), an oral broad-acting,
host-directed, serine protease inhibitor with potential for
pandemic preparedness and is in a Phase 3-stage study as treatment
for non-hospitalized symptomatic COVID-19, and targeting multiple
other cancer and inflammatory gastrointestinal diseases; (iv)
RHB-104, with positive results from a first Phase 3 study
for Crohn's disease; and (v) RHB-102 , with positive results
from a Phase 3 study for acute gastroenteritis and gastritis and
positive results from a Phase 2 study for IBS-D. More information
about the Company is available at www.redhillbio.com/
twitter.com/RedHillBio.
Forward-Looking Statements
This press release contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements may be preceded by the words "intends,"
"may," "will," "plans," "expects," "anticipates," "projects,"
"predicts," "estimates," "aims," "believes," "hopes," "potential"
or similar words and include statements regarding the sale of
Movantik, the addition of revenue-generating products to replace
lost Movantik revenues, maximizing Talicia's and Aemcolo's
potential and advancing development of late clinical-stage
pipeline. Forward-looking statements are based on certain
assumptions and are subject to various known and unknown risks and
uncertainties, many of which are beyond the Company's control and
cannot be predicted or quantified, and consequently, actual results
may differ materially from those expressed or implied by such
forward-looking statements. Such risks and uncertainties include,
without limitation, the risk that we will not be successful in
adding revenue-generating products, near term or otherwise, and
that we will not be successful in maximizing Talicia's and
Aemcolo's potential and that we will not be successful in advancing
development of our late clinical-stage pipeline. More detailed
information about the Company and the risk factors that may affect
the realization of forward-looking statements is set forth in the
Company's filings with the Securities and Exchange Commission
(SEC), including the Company's Annual Report on Form 20-F filed
with the SEC on March 17, 2022 and
the Company's Report on Form 6-K filed with the SEC on November 10, 2022. All forward-looking statements
included in this press release are made only as of the date of this
press release. The Company assumes no obligation to update any
written or oral forward-looking statement, whether as a result of
new information, future events or otherwise unless required by
law.
Company
contact:
Adi Frish
Chief Corporate and
Business Development Officer
RedHill
Biopharma
+972-54-6543-112
adi@redhillbio.com
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Category: Financials
Logo:
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[1] Talicia® (omeprazole magnesium, amoxicillin and
rifabutin) is indicated for the treatment of H. pylori
infection in adults. For full prescribing information see:
www.Talicia.com.
[2] Aemcolo® (rifamycin) is indicated for the
treatment of travelers' diarrhea caused by noninvasive strains of
Escherichia coli in adults. For full prescribing information
see: www.aemcolo.com.
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SOURCE RedHill Biopharma Ltd.