RedHill Biopharma inks $1.8 million Middle East licensing deal for Talicia

RedHill will receive $500,000 in guaranteed payments, including a $250,000 upfront payment and $250,000 in fixed payments due within 18 months

RedHill Biopharma Ltd., a specialty biopharmaceutical company, has entered into a new licensing agreement for Talicia, its flagship therapy for Helicobacter pylori (H. pylori) infection, covering additional markets in the Middle East. The deal is valued at up to $1.8 million, in addition to tiered royalty payments on future sales.

Under the terms of the agreement, RedHill will receive $500,000 in guaranteed payments, including a $250,000 upfront payment and $250,000 in fixed payments due within 18 months. The company is also eligible to receive a minimum of $1.3 million in near-term milestone payments, along with tiered royalties of up to the mid-teens percentage on Talicia net sales in the licensed territories.

“Talicia demonstrates up to 90 per cent eradication efficacy, an excellent safety profile, and zero to minimal resistance to its antibiotic components,” said Rick Scruggs, Chief Commercial Officer at RedHill Biopharma. “Its all-in-one capsule formulation and simplified dosing schedule make it an especially valuable therapy for patients and physicians. We are excited to bring Talicia to new Middle East markets, where H. pylori infection rates are among the highest globally. This agreement is an important step in expanding patient access and advancing RedHill’s global strategy to grow non-dilutive ex-U.S. licensing revenues.”

Helicobacter pylori is a bacterial infection that affects more than 50 per cent of the world’s adult population, with prevalence rates approaching 80 per cent in parts of the Middle East. The World Health Organization (WHO) classifies H. pylori as a Group 1 carcinogen, and it is a leading risk factor for gastric cancer, which causes approximately 800,000 deaths worldwide each year. Clinical studies have shown that eradication of H. pylori can reduce gastric cancer risk by up to 75 per cent.

The increasing global prevalence of antibiotic-resistant H. pylori strains has made effective treatment more critical than ever. The American College of Gastroenterology (ACG) Clinical Guidelines recommend avoiding clarithromycin-based therapies unless susceptibility testing confirms sensitivity, due to rising resistance and failure rates of up to 40 per cent. As the only FDA-approved, all-in-one, low-dose rifabutin-based therapy for H. pylori, Talicia is specifically designed to overcome this challenge.

Talicia is the #1 branded H. pylori therapy prescribed by U.S. gastroenterologists and is listed as a first-line treatment option in the ACG guidelines. The product is patent-protected through 2042 and benefits from eight years of U.S. market exclusivity under its Qualified Infectious Disease Product (QIDP) designation.