RedHill Biopharma licenses European rights to Movantik and RHB 204 to Cosmo Pharma.

RedHill Biopharma Ltd. announced that it has entered into a binding term sheet with Cosmo Pharmaceuticals N.V. for an exclusive licensing and manufacturing agreement for multiple products. The transaction is expected to close in the coming weeks. Pursuant to the agreement, the companies will co-develop a novel next-generation therapy for the eradication of H. pylori infection. Cosmo is to receive the exclusive European rights to the new drug and will pay RedHill $7 million upon signing of the license agreement and an additional $2 million upon approval in Europe, and 30% royalties. The companies plan to jointly execute clinical trials pursuing simultaneous regulatory approvals in the U.S. and Europe, with a cost split 70% RedHill and 30% Cosmo. Cosmo will become the exclusive worldwide manufacturer for the novel next-generation therapy for the eradication of H. pylori infection, Movantik (naloxegol), which RedHill recently acquired from AstraZeneca, and RHB 204 for pulmonary nontuberculous mycobacteria (NTM) infections. Cosmo will be paid €5.5 million for tech transfer, formulation and development work with respect of these products.