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Summary of Highlights
- On 22 February 2017 RedHill released its Q4 and annual financial reports for 2017;
- Net revenues of $2M and gross profit of $1.1M for Q4-2017, up 31% and 84%, respectively, over corresponding periods in 2016;
- A debt-free balance sheet with $46.2M in cash at the end of 2017;
- RedHill sales of GI drugs totaled approx. $1.5M for Q3-2017, $2M for Q4-2017, and $4M for the year 2017. We estimate 2018 quarterly revenues for RedHill's three GI drugs at $4M;
- Expected Forthcoming Milestones:
- TALICIA(RHB-105): In June 2017, RedHill initiated a confirmatory Phase III study with TALICIA(RHB-105) for H. pylori infection (ERADICATE Hp2 study). Top-line results are expected in the second half of 2018.
- RHB-104 - Crohn's disease (Phase III): In November 2017, RedHill completed enrollment of its first Phase III study with RHB-104 for Crohn's disease (MAP US study). Top-line results are expected in mid-2018.
- RedHill plans, subject to further input from the U.S. Food & Drug Administration (FDA), to initiate in mid-2018 a pivotal Phase III study to assess the safety and efficacy of RHB-104 as potential first-line treatment for nontuberculous mycobacteria (NTM) infections caused by mycobacterium avium complex (MAC) infection.
- Based on the company's financial results in 2017 which met our expectations, and its strong financial structure, and in light of its on track clinical development with top-line results for RHB-104 expected Q3-2018; the company's value has been raised.
- In our most recent valuation (13 December 2017), we decreased the company's equity value to $137.0M (NIS 485.0M) from $145.4M (NIS 514.7M) as per our Q3-2017 report (27 November 2017. This corresponded to a target price ranging between NIS 2.22 and NIS 2.33; a mean of NIS 2.27.
- We evaluate the company's equity value 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.
About the company - RedHill Biopharma Ltd. ("the Company" and/or "RedHill") is an Israeli publicly-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. please clickhere (https://ww2.frost.com/research/equity-research/)
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