RedHill Biopharma Ltd. [NASDAQ: RDHL] disclosed Thursday it has partnered with Cosmo Pharmaceuticals. Both the companies entered into an agreement for exclusive licensing for multiple products.
After the agreement, RedHill & Cosmo will join hands to co-develop a novel next-generation therapy for the removal of H. pylori infection.
Shares of RedHill soared 2.45%, or up +0.22 during the trading of Wednesday. It had opened at $9.07 and has a previous close of $9.19. It has a day low and high range of $8.67-$9.37, respectively.
In the past 52-weeks of trading, its stocks have fluctuated between the low of $3.26 and a high of $10.17. RedHill has moved up 181.72% from its 52-weeks low and decreased -9.64% from its 52-weeks high.
If we look at the profitability of RedHill, its return on assets (ROA) is -64.50%. Its return on equity (ROE) is -125.20%, and return on investment (ROI) is-67.70%. Additionally, its Gross Margin is 36.60%.
Cosmo is to get Exclusive European right and planned to give $7 million to RedHill upon signing of the licensing agreement. Cosmo will pay an extra $2 million after receiving approval in Europe. The company also decided to pay 30% royalties.
Furthermore, RedHill and Cosmo decide to jointly conduct formally approved clinical trials in the US and Europe at the same time, at a cost split of 70% RedHill and 30% Cosmo.
Cosmo will become the manufacturer for the next-generation therapy for the removal of H. pylori infection, Movantik, and RHB-204 for pulmonary nontuberculous mycobacteria (NTM) infections.