Investing.com -- Shares of RedHill Biopharma Ltd. (NASDAQ:RDHL) climbed 5% intra-day Tuesday following the announcement that its H. pylori treatment, Talicia, is now covered by Humana (NYSE:HUM)'s Part D Plan. This expansion provides access to more than eight million additional Medicare lives, effective as of January 1, 2025. RedHill's President and Chief Commercial Officer, Rick D. Scruggs, expressed satisfaction with the growing Medicare coverage and the recognition of Talicia as a first-line treatment option.
The positive market response also comes on the heels of the updated American College of Gastroenterology (ACG) Clinical Guideline, which lists Talicia as a preferred first-line treatment for H. pylori infection. This endorsement is significant as H. pylori affects approximately 35% of the U.S. adult population and is a major risk factor for gastric cancer and peptic ulcer disease.
Further bolstering the stock's performance is the publication of new data in The Journal of Clinical Pharmacology. The study, which was a collaboration with Certara (NASDAQ:CERT), used physiologically-based pharmacokinetic (PBPK) modeling to demonstrate the equivalence of Talicia's new three-times daily (TID) dosing regimen to the previous every 8-hour (Q8H) dosing. This label change to a TID dosing routine is expected to simplify the patient experience and support increased adherence to the treatment.
The recent developments underscore RedHill's commitment to enhancing patient outcomes. The TID regimen aligns with the company's goal of providing an effective and patient-friendly treatment option for H. pylori infection, which is crucial for optimizing patient outcomes and preventing bacterial resistance.
As of the date of the press release, January 21, 2025, RedHill's Talicia stands as the only FDA-approved low-dose rifabutin-based therapy for the eradication of H. pylori, and continues to be the most prescribed branded therapy by U.S. gastroenterologists for this condition. The expanded coverage and the positive reception by the medical community signal a strong start to the year for RedHill Biopharma.
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