RedHill Biopharma (NASDAQ:RDHL) Ltd. has reported financial results for the second quarter of 2021, showing record quarterly revenues achieved and significant growth for its Talicia and Movantik drugs.
For the three months ended June 30, 2021, RedHill posted net revenue of approximately $21.5 million while maintaining gross margin above 50%. The increase was attributable to a rise in revenues from Talicia and Movantik despite the challenging coronavirus (COVID-19) pandemic environment.
RedHill noted that its focus on initiatives to drive Movantik market growth and gain market share had resulted in a strong quarterly performance for Movantik, registering a 5.6% increase in new prescriptions. In addition, Talicia achieved a record quarter, delivering more than 10% growth in prescription volume, compared to the previous quarter.
RedHill's cash balance as of June 30, 2021, was approximately $71.5 million.
READ: RedHill Biopharma demonstrates strong inhibition by opaganib of the coronavirus (COVID-19) Delta variant
In the results statement, Dror Ben-Asher, RedHill's chief executive officer, said: "We have achieved important progress across the board this quarter. Opaganib is one of the leading drug candidates in the race to develop an effective COVID-19 therapeutic pill. New data further supports opaganib's potent inhibition of SARS-CoV-2 variants of concern, including the rapidly spreading Delta variant. The upcoming Phase 2/3 top-line data could tell us if we have a potential game-changing oral pill treatment for severe COVID-19, one that is aligned with the ideal product profile described by public health experts."
He added: "Commercially, we are continuing to see the fruits of our labor, with significant growth in both Talicia and Movantik prescriptions. Importantly, record quarterly Talicia prescriptions and improving commercial payor coverage are testament to the growing understanding of the need to treat H. pylori in a way that minimizes treatment failure due to antibiotic resistance. This sets us up for continued strong growth."
Importantly, the company further announced two new developments with its novel drug candidate opaganib. RedHill reported that that Quantum Leap Healthcare Collaborative and the US government’s Biomedical Advanced Research and Development Authority (BARDA) are close to a selection of opaganib, as they near the end of an extensive review, for inclusion in the I-SPY COVID-19 Trial, with funding for opaganib provided by BARDA. The I-SPY platform is intended for rapidly testing promising therapeutic candidates for severely ill COVID-19 patients.
RedHill as well updated that according to a preliminary review of partial and unaudited data in the ongoing investigator-initiated open-label Phase 2 study of opaganib in combination with androgen inhibitors in advanced prostate cancer at the Medical University of South Carolina (MUSC) and Emory University, the study has met its primary endpoint of at least 6 subjects demonstrating disease control (defined as stable disease or better after 16 weeks on treatment) among at least 27 evaluable subjects.
The study enrolls patients who have already failed androgen inhibitor therapy, with opaganib being added to the failed inhibitor to reverse resistance that has developed. Data entry is ongoing and results remain subject to further review and analysis. Submission for presentation at a major oncology conference is planned for early 2022.
In a separate statement on Thursday, the company also reported that new preclinical data demonstrated opaganib strongly inhibited COVID-19 Delta variant that is spreading rapidly and causing significant hospitalization.
Micha Ben Chorin, RedHill's chief financial officer commented: "From a financial perspective, the revenue growth in the second quarter, despite the challenging pandemic conditions, highlights the execution excellence of our US commercial organization. Achieving record revenues of $21.5 million while maintaining gross margin above 50% represents a key accomplishment on RedHill's growth path to become a leading specialty pharma player."
RedHill hosted a webcast on Thursday, August 26, 2021, at 8.30am EDT, during which it presented key highlights for the second quarter of 2021. The webcast including slides was broadcast live on the company's website, https://ir.redhillbio.com/events, and is available for replay for 30 days.
RedHill Biopharma (NASDAQ:RDHL) is a specialty biopharmaceutical company primarily focused on gastrointestinal and infectious diseases.
Contact the author at jon.hopkins@proactiveinvestors.com
Disclaimer: This content has been provided pursuant to an agreement under which RedHill Biopharma pays an annual fee to the publisher. (https://www.proactiveinvestors.com/pages/terms)