RedHill Biopharma - COVID-19 challenges and opportunities

The ongoing COVID-19 pandemic is causing unprecedented challenges for most companies. According to the latest business update (25 March), the impact on RedHill's activities remains limited, but the global crisis also provides a significant opportunity for the company. RedHill has identified its anti-cancer/anti-inflammatory asset opaganib (Yeliva, formerly ABC294640) as a potential treatment for COVID-19. It has managed to fast-track compassionate use programmes where opaganib is now offered to COVID-19 patients (first experience also reported). RedHill indicated that it is working with major countries to increase opaganib's availability via compassionate use programmes, but also on potential clinical development. Until more details are released, we keep our R&D model unchanged (opaganib for cholangiocarcinoma), but there is potential to expand it. RedHill's shares are now trading at prices higher than pre-COVID-19 levels. Our last published valuation is $638m or $18.1 per ADS.