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Tuesday, September 14, 2021 1:53:50 PM
A clinical failure is sending shareholders to the exits this morning.
https://www.fool.com/investing/2021/09/14/why-redhill-biopharma-stock-is-getting-crushed-tod/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
George Budwell
(Tmfgbudwell)
Sep 14, 2021 at 12:02PM
Author Bio
What happened
Shares of the specialty biopharmaceutical company RedHill Biopharma (NASDAQ:RDHL) are down by an eye-popping 33% as of 10:53 a.m. EDT Tuesday morning. The drugmaker's stock is tanking today in response to the performance of opaganib, a sphingosine kinase-2 selective inhibitor, which failed to hit its primary endpoint in a phase 2/3 trial as a treatment for hospitalized patients with severe COVID-19 pneumonia.
Interestingly, the market appears to have anticipated this clinical failure, as evinced by RedHill's steady decline over the course of the past week. The company's stock, in fact, has now shed almost half of its value since Sept. 8.
So what
While opaganib's COVID-19 indication probably wasn't going to be a huge moneymaker for RedHill (analysts expected roughly $200 million to $300 million at the peak from this indication), this sizable market may have had enough juice to transform the company into a profitable operation perhaps as soon as next year. What's important to understand is that Wall Street currently expects RedHill to be cash-flow negative until at least 2023 despite having three gastroenterology-focused medicines on the market.
Now what
Is RedHill's stock worth picking up on this latest pullback? There is a lot to like about this small-cap pharma stock, especially at these bargain-basement levels. RedHill's gastroenterology franchise -- consisting of Talicia for Helicobacter pylori infection, Movantik for opioid-induced constipation in adults, and Aemcolo for travelers' diarrhea in adults -- could garner sales in excess of $1 billion before the end of the decade. That's an enormous potential revenue stream for a healthcare company with a market cap of less than $250 million.
All told, RedHill's stock is likely to take a while to turn into a consistent winner. But there is enough latent value hidden within this tiny drugmaker to merit a deeper dive by healthcare investors with a long-term outlook.
Recent RDHL News
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 06/20/2024 11:23:21 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 06/06/2024 01:00:06 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 06/03/2024 11:04:03 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/06/2024 11:01:56 AM
- RedHill Announces New Opaganib Chinese Patent Against Ebola Virus Valid Through 2035 • PR Newswire (US) • 05/06/2024 11:00:00 AM
- RedHill Announces First Patient Enrolled in U.S. Government-Supported COVID-19 Study • PR Newswire (US) • 04/24/2024 11:00:00 AM
- RedHill Biopharma Announces Full-Year 2023 Results and Operational Highlights • PR Newswire (US) • 04/08/2024 01:23:00 PM
- RedHill Biopharma Announces $1.25 Million Registered Direct Offering at a Premium to Market Price • PR Newswire (US) • 04/02/2024 11:00:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/11/2024 11:01:56 AM
- RedHill Announces New USPTO Patent Covering Talicia® Through 2034 • PR Newswire (US) • 03/11/2024 11:00:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/05/2024 12:01:24 PM
- RedHill's Opaganib Selected for Evaluation by BARDA and NIH Countermeasures Programs • PR Newswire (US) • 03/05/2024 12:00:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/20/2024 09:05:25 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/20/2024 12:01:50 PM
- RedHill's Opaganib Protects Against Radiation-Induced Lung Inflammation and Fibrosis - New Publication • PR Newswire (US) • 02/20/2024 12:00:00 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 02/16/2024 01:54:05 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 02/16/2024 05:15:18 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/13/2024 09:05:17 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/02/2024 09:10:29 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/01/2024 03:22:43 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/26/2024 05:50:54 PM
- RedHill Biopharma Announces Closing of $8 Million Registered Direct Offering • PR Newswire (US) • 01/26/2024 05:46:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/26/2024 02:31:27 PM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 01/26/2024 02:29:37 PM
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