RedHill Biopharma Ltd (RDHL)

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RedHill Bio inks new agreement with Daiichi Sankyo for Movantik

Aug. 3, 2020 8:55 AM ET|About: RedHill Biopharma Ltd. (RDHL)|By: Mamta Mayani, SA News Editor

RedHill Biopharma (NASDAQ:RDHL) has replaced its existing 2015 co-commercialization agreement with Daiichi Sankyo (OTCPK:DSKYF) for Movantik (naloxegol) with a new royalty-bearing agreement, under April 2020 acquisition agreement with AstraZeneca (NYSE:AZN).

Under the terms of the new agreement, RedHill will bear all responsibilities and costs for commercializing Movantik in the U.S. and will pay Daiichi a mid-teen royalty, in addition to three lump sum payments.

Additionally, the companies also entered a subscription agreement under which Daiichi received 283,387 ADSs of RedHill as a partial consideration in relation to Movantik.

RDHL acquired the global rights, excluding Europe, Canada and Israel, to Movantik for the treatment of opioid induced constipation from AstraZeneca in April 2020.