RedHill Biopharma Divests Talicia Stake to Apotex Subsidiary for $18M

Editor’s Take: The treatment central to the deal addresses a major risk factor for gastric ulcers and stomach cancer.

RedHill Biopharma is divesting its Talicia business to a subsidiary of Apotex Health. Financially, the structure of the transaction is $18 million up front, with an additional $35 million in potential payments. These would be based on worldwide net sales milestones.

What Apotex Gets

For that price, Apotex receives RedHill’s 70% interest in Talicia, a treatment for adults with Helicobacter pylori (H. pylori) infection. H. pylori can infect the lining of the stomach and duodenum. This makes it a major risk factor for gastric ulcers and stomach cancer.

The deal takes Apotex full circle following a prior acquisition of Cumberland Pharmaceuticals’ United States-branded business. This included Cumberland’s 30% stake in Talicia.

Reaction from RedHill

“This transaction is a pivotal milestone for RedHill,” CEO Dror Ben-Asher said. “We are converting our 70% stake in Talicia into immediate capital, significantly stronger liquidity and meaningful potential upside … We’re confident that given its proven capabilities, Apotex is the right home to grow Talicia globally. We thank Apotex for their partnership on the successful conclusion of this transaction.”

Ben-Asher went on to say that the deal “unlocks the resources” needed to scale RedHill’s existing gastrointestinal (GI) commercial franchise. This would potentially include new and high-value FDA-approved product opportunities, which were not specifically elaborated upon in a press release.

Brief Talicia History

The U.S. FDA accepted RedHill’s New Drug Application for Talicia (omeprazole magnesium, amoxicillin and rifabutin) in July 2019. As of December 2022, Recipharm had extended commercial manufacturing of Talicia to 2026.