Redhill Biopharma, a specialty biopharmaceutical company, reported a net income of $23.9 million for the year ended December 31, 2023, compared to a net loss of $71.7 million for the previous year. This turnaround was primarily due to the divestiture of Movantik®, a key revenue-generating product, to an affiliate of HCRM, resulting in the extinguishment of all debt obligations under the Credit Agreement. The sale led to a gain of $35.5 million and an additional $8.6 million from transitional services provided to the buyer. However, the company's net revenues decreased to $6.5 million from $61.8 million in the previous year, following the divestiture of Movantik®. Research and development expenses decreased to $3.5 million from $7.3 million due to the completion of clinical trials related to COVID-19 and RHB...Show More

Redhill Biopharma, a specialty biopharmaceutical company, reported a net income of $23.9 million for the year ended December 31, 2023, compared to a net loss of $71.7 million for the previous year. This turnaround was primarily due to the divestiture of Movantik®, a key revenue-generating product, to an affiliate of HCRM, resulting in the extinguishment of all debt obligations under the Credit Agreement. The sale led to a gain of $35.5 million and an additional $8.6 million from transitional services provided to the buyer. However, the company's net revenues decreased to $6.5 million from $61.8 million in the previous year, following the divestiture of Movantik®. Research and development expenses decreased to $3.5 million from $7.3 million due to the completion of clinical trials related to COVID-19 and RHB-107, and ongoing cost-reduction measures. Selling, marketing, and general and administrative expenses also decreased to $31.0 million from $64.0 million, primarily due to cost-reduction measures and the divestiture of Movantik®. The company's financial income for the year was $11.3 million, a significant change from the financial expenses of $28.8 million in the previous year, mainly due to the gain from the debt extinguishment. Redhill Biopharma's total assets decreased to $23 million from $158.9 million, and total liabilities decreased to $21 million from $207.3 million, reflecting the impact of the Movantik® transaction. The company's cash balance at the end of the year was $6.5 million, including $0.8 million of restricted cash. Management has expressed substantial doubt about the company's ability to continue as a going concern, citing the need to raise significant additional capital to finance ongoing losses and negative cash flows from operations. Redhill Biopharma is actively pursuing strategic business transactions, including potential divestment of certain assets, to address its financial challenges.