RedHill Biopharma, a specialty biopharmaceutical company focused on gastrointestinal diseases, infectious diseases and oncology, has divested its Talicia business to a subsidiary of Apotex Health Corp. for an upfront payment of USD 18 million, along with the potential for up to USD 35 million in additional payments tied to worldwide net sales milestones.

Under the agreement, RedHill transferred its 70 percent interest in Talicia to Apotex. The transaction follows Apotex’s acquisition of Cumberland Pharmaceuticals Inc.’s US branded business, which included Cumberland’s 30 percent ownership stake in Talicia, giving Apotex ownership of the full business.

RedHill said the transaction will provide immediate capital and strengthen its liquidity while creating additional financial flexibility to expand its US gastrointestinal commercial franchise. The company plans to use the resources to pursue additional high-value, FDA-approved product opportunities and support the expansion of its commercial operations.

Ben-Asher added that the proceeds will support the company’s next phase of commercial expansion and help build a larger GI-focused business. He also expressed confidence that Apotex is well positioned to expand Talicia’s presence globally.

Talicia is a combination treatment targeting Helicobacter pylori (H. pylori) infection, a major risk factor associated with gastric cancer and peptic ulcers. RedHill had previously developed and positioned the product as part of its gastrointestinal portfolio.

For Apotex, the transaction expands its ownership of Talicia and provides an opportunity to leverage its global commercial capabilities to further develop the product across international markets.

RedHill was advised on the transaction by Morningstar Law Group and Greenberg Traurig LLP.

RedHill Biopharma is primarily focused on the development and commercialisation of medicines for gastrointestinal diseases, infectious diseases and oncology in the US. Apotex, headquartered in Canada, is a global healthcare company with a portfolio spanning generic, biosimilar and innovative branded pharmaceuticals, as well as consumer health products.