RedHill Biopharma - Movantik acquisition completed; sales booked

RedHill is now promoting Aemcolo for travellers’ diarrhoea (since December 2019), Talicia for H. pylori eradication (since March 2020) and the most recent addition, Movantik, for opioid-induced constipation (acquired from AstraZeneca on 1 April 2020). Movantik is an established product and AstraZeneca reported 2019 sales of $96m in the US, so it is a significant addition to RedHill’s portfolio. In April, the company booked $7.3m Movantik sales, which seems a good result given this was the peak month of the COVID-19 pandemic. Promotion of the novel drugs, Talicia and Aemcolo, is affected by the ongoing pandemic and RedHill had to postpone certain promotional activities, but we believe the potential of these drugs is intact. Our valuation is $593m or $16.5 per ADS.