RALEIGH, N.C. and TEL AVIV, Israel - RedHill Biopharma Ltd. (NASDAQ: NASDAQ:RDHL) announced today the renewal of its contract with Medi-Cal, California's Medicaid healthcare program, to keep Talicia on the Medi-Cal Fee-For-Service (FFS) Contract Drug List. This renewal, effective October 1, 2024, ensures continued access to Talicia for approximately 15 million Californians with no prior authorization and a $0 copay.
Talicia, a treatment for Helicobacter pylori (H. pylori) infection, aligns with the new American College of Gastroenterology (ACG) Clinical Guideline, which lists it as a recommended first-line treatment. H. pylori is a significant health concern, affecting around 35% of the U.S. adult population and recognized by the World Health Organization (WHO) as a Group 1 carcinogen due to its association with gastric cancer.
The agreement underscores the commitment to patient care by both Medi-Cal and RedHill. Rick D. Scruggs, President and Chief Commercial Officer of RedHill Biopharma, Inc., emphasized the importance of the renewal following the ACG guideline update and the convenience of Talicia's all-in-one three-times daily oral capsule.
Talicia's formulation, combining two antibiotics and a proton pump inhibitor, is designed to combat H. pylori's growing resistance to other antibiotics, specifically clarithromycin. It was approved by the U.S. FDA in November 2019 and has demonstrated an 84% eradication rate of H. pylori infection in its pivotal Phase 3 study.
RedHill Biopharma is a specialty biopharmaceutical company focused on gastrointestinal and infectious diseases. Its product Talicia is protected by U.S. patents extending until 2034, with additional patents pending worldwide.
This news is based on a press release statement and reflects the ongoing efforts to improve patient outcomes and access to essential treatments.
In other recent news, RedHill Biopharma Ltd. has reported promising results from in vivo studies for its drug opaganib, which shows potential in treating obesity and Type 2 diabetes. The studies, carried out by Apogee (NASDAQ:APOG) Biotechnology Corporation, suggest opaganib could reduce weight gain and improve glucose tolerance. Additionally, RedHill recently finalized a Global Termination Agreement, enhancing its cash position by approximately $9.9 million and potentially granting access to an additional $0.74 million.
The company has also initiated a Phase 2 trial for its oral antiviral drug, RHB-107, as an outpatient treatment for early COVID-19. The global trial, part of the Austere Environments Consortium for Enhanced Sepsis Outcomes' (ACESO) PROTECT platform study, aims to enroll 300 patients across multiple countries. This host-directed therapy has previously shown a significant reduction in hospitalizations in a U.S. Phase 2 study.
Opaganib has been selected for evaluation by two U.S. government countermeasures programs for its potential in treating Acute Radiation Syndrome (ARS) and Sulfur Mustard exposure. It has also shown antiviral activity against SARS-CoV-2, influenza A, and Ebola. These developments highlight the company's ongoing efforts in drug research and development.
InvestingPro Insights
RedHill Biopharma's contract renewal with Medi-Cal for Talicia comes at a critical time for the company, as revealed by recent InvestingPro data. Despite the positive news, the company faces significant financial challenges.
According to InvestingPro Tips, RedHill is "quickly burning through cash" and its "short term obligations exceed liquid assets." This financial strain is reflected in the company's market capitalization, which stands at a modest $11.19 million. The company's revenue for the last twelve months as of Q2 2024 was $3.71 million, with a concerning revenue growth of -89.63% over the same period.
However, it's not all doom and gloom. An InvestingPro Tip indicates that "analysts anticipate sales growth in the current year," which could be partly attributed to the renewed Medi-Cal contract for Talicia. Additionally, another tip suggests that "analysts predict the company will be profitable this year," offering a glimmer of hope for RedHill's financial future.
The company's stock performance has been volatile, with the InvestingPro data showing a -9.98% return over the past week and a -76.05% return year-to-date. This volatility is consistent with the InvestingPro Tip that the "stock generally trades with high price volatility."
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for RedHill Biopharma, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.