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Friday, October 18, 2019

RedHill Bio in-licenses Cosmo Pharma’s Aemcolo rights in U.S.

RedHill Biopharma (NASDAQ:RDHL) is up 10% premarket after entering into an exclusive license agreement with Cosmo Pharmaceuticals N.V. (OTC:CMOPF) for U.S. rights to Aemcolo (rifamycin) for Traveler’s Diarrhea and a simultaneous private investment by Cosmo of $36.3M in RedHill.
As part of the Aemcolo license agreement, RedHill will issue Cosmo 1,714,286 ADSs at $7/ADS at an agreed value of $12M, as an upfront payment.
These ADSs are in addition to the ADSs issued to Cosmo as part of the $36.3M investment. In addition, RedHill will pay a royalty percentage in the high twenties on net sales of Aemcolo in U.S.
The license agreement further provides for potential milestone payments to Cosmo totaling up to $100M.
https://seekingalpha.com/news/3506806-redhill-bio-licenses-cosmo-pharmas-aemcolo-rights-u-s-shares-10-percent-premarket

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