Cumberland Pharmaceuticals invests $4 million in RedHill's Talicia business

Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX) has invested $4 million for a 30% ownership stake in RedHill Biopharma Limited's (NASDAQ: RDHL) global Talicia business, according to a press release statement. RedHill retains 70% ownership and joint control of the H. pylori treatment drug business.

The companies have entered into a U.S. co-commercialization agreement with equal sharing of Talicia's net revenues. Cumberland will provide its national sales force to support the drug's marketing and promotional activities while sharing responsibility for sales, manufacturing, supply, regulatory and administrative operations.

"This strategic partnership provides an excellent growth opportunity for RedHill and for Cumberland, a highly capable and driven partner with a strong gastroenterology market presence," said Dror Ben-Asher, RedHill's CEO.

The transaction supports RedHill's plan to regain compliance with Nasdaq's minimum stockholders' equity requirement of $2.5 million for continued listing. RedHill believes it now has stockholder's equity exceeding this threshold and plans to notify Nasdaq of its compliance status.

Talicia is FDA-approved for treating H. pylori infection in adults and received eight years of U.S. market exclusivity under its Qualified Infectious Disease Product designation. The drug is patent protected through 2042.

RedHill also announced this month the licensing of Talicia for Middle East markets in a deal potentially worth $1.8 million plus sales royalty payments.

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