RedHill sells Talicia to Apotex for $18M upfront plus milestones

RedHill Biopharma Ltd. (NASDAQ: RDHL) has divested its Talicia business to a subsidiary of Apotex Health Corp. (TSX: APTX) for an upfront cash payment of $18 million, plus up to $35 million in additional payments tied to worldwide net sales milestones, according to a company statement.

Under the agreement, Apotex acquires RedHill's 70% interest in Talicia, an H. pylori treatment. The transaction follows Apotex's prior acquisition of Cumberland Pharmaceuticals Inc.'s U.S. branded business, which included Cumberland's 30% ownership stake in Talicia, giving Apotex full ownership of the product.

RedHill Chief Executive Officer Dror Ben-Asher said the deal converts the company's stake in Talicia into immediate capital and is intended to fund expansion of its gastrointestinal commercial franchise, including new FDA-approved product opportunities.

RedHill was advised by Morningstar Law Group and Greenberg Traurig LLP on the transaction.

RedHill is a specialty biopharmaceutical company focused on U.S. development and commercialization of drugs for gastrointestinal diseases, infectious diseases, and oncology. The company is headquartered in Raleigh, N.C., with offices in Tel Aviv, Israel.

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