Frost & Sullivan Publishes Update Coverage Report on RedHill Biopharma Ltd.: Net revenues for 2017 m

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Summary of Highlights

• On 22 February 2017 RedHill released its Q4 and annual financial reports for 2017;
• Net revenues of $2M and gross profit of $1.1M for Q4-2017, up 31% and 84%, respectively, over corresponding periods in 2016;
• A debt-free balance sheet with $46.2M in cash at the end of 2017;
• RedHill sales of GI drugs totaled approx. $1.5M for Q3-2017, $2M for Q4-2017, and $4M for the year 2017. We estimate 2018 quarterly revenues for RedHill's three GI drugs at $4M;
• Expected Forthcoming Milestones:
  • TALICIA® (RHB-105): In June 2017, RedHill initiated a confirmatory Phase III study with TALICIA® (RHB-105) for H. pylori infection (ERADICATE Hp2 study). Top-line results are expected in the second half of 2018.
  • RHB-104 - Crohn's disease (Phase III): In November 2017, RedHill completed enrollment of its first Phase III study with RHB-104 for Crohn's disease (MAP US study). Top-line results are expected in mid-2018.
  • RedHill plans, subject to further input from the U.S. Food & Drug Administration (FDA), to initiate in mid-2018 a pivotal Phase III study to assess the safety and efficacy of RHB-104 as potential first-line treatment for nontuberculous mycobacteria (NTM) infections caused by mycobacterium avium complex (MAC) infection.
• Based on the company's financial results in 2017 which met our expectations, and its strong financial structure, and in light of its on track clinical development with top-line results for RHB-104 expected Q3-2018; the company's value has been raised.
• In our most recent valuation (13 December 2017), we decreased the company's equity value to $137.0M (NIS 485.0M) from $145.4M (NIS 514.7M) as per our Q3-2017 report (27 November 2017. This corresponded to a target price ranging between NIS 2.22 and NIS 2.33; a mean of NIS 2.27.
• We evaluate the company's equity value at $159.8 million (NIS 551.6M) corresponding to a target price ranging between NIS 2.54 and NIS 2.65; a mean of NIS 2.59.

About the company - RedHill Biopharma Ltd. ("the Company" and/or "RedHill") is an Israeli publicly-traded specialty biopharmaceutical company focused on the development and commercialization of late clinical-stage drugs candidates. The Company's main focus is advanced clinical development and commercialization in the US of orally-administered, proprietary, small molecule drugs for the treatment of gastrointestinal and inflammatory diseases and cancer. RedHill is currently promoting three gastrointestinal products and is advancing multiple clinical programs: three Phase III for gastrointestinal and inflammation indications and multiple Phase II for various indications including multiple myeloma, hepatocellular carcinoma, pancreatic cancer, and irritable bowel syndrome with diarrhea.

About Frost & Sullivan

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