RedHill Biopharma (RDHL) AI Stock Analysis

• Market Cap: $3.60M
• Dividend Yield: N/A
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 35
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -2.32
• Shares Outstanding: 3,329,857
• 10 Day Avg. Volume: 104,605
• 30 Day Avg. Volume: 1,981,143
• PEG Ratio: 0.02
• Price to Book (P/B): -3.27
• Price to Sales (P/S): 1.90
• P/FCF Ratio: -1.63
• Enterprise Value/Market Cap: 0.19
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.11
• Enterprise Value/Ebitda: -0.09
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $1.00 ▼(-16.67% Downside)

RedHill Biopharma's overall stock score is primarily influenced by its challenging financial performance, characterized by significant losses and high leverage. The technical analysis suggests a bearish trend, further impacting the score. The absence of valuation metrics and earnings call data limits a comprehensive assessment, resulting in a low overall score.

Positive Factors

Regained Nasdaq Compliance

Regaining Nasdaq compliance strengthens RedHill's market position and enhances investor confidence, supporting long-term growth.

Strategic Partnerships

The partnership with Cumberland enhances market reach and financial performance, bolstering RedHill's competitive position in the U.S.

Legal Victory

The legal victory improves RedHill's financial position by providing significant cash inflow, aiding in financial stability and strategic initiatives.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting RedHill's ability to invest in growth and innovation.

Negative Cash Flows

Negative cash flows indicate liquidity challenges, which may hinder RedHill's ability to sustain operations and invest in R&D long-term.

Negative Profit Margins

Sustained negative profit margins reflect operational inefficiencies, posing a risk to RedHill's financial health and long-term viability.

RedHill Biopharma Business Overview & Revenue Model

Company Description

RedHill Biopharma Ltd., a specialty biopharmaceutical company, primarily focuses on gastrointestinal and infectious diseases. The company promotes gastrointestinal drugs, including Movantik for opioid-induced constipation in adults with chronic non-cancer pain; Talicia for the treatment of Helicobacter pylori infection in adults; and Aemcolo for the treatment of travelers' diarrhea in adults. Its clinical late-stage investigational development programs include RHB-204, which is in Phase 3 study for pulmonary nontuberculous mycobacteria infections; opaganib (Yeliva), an SK2 selective inhibitor, which has completed Phase 2 study to treat patients with SARS-CoV-2 severe COVID-19 pneumonia, in Phase 2 study to treat advanced unresectable cholangiocarcinoma, and in investigator-sponsored Phase 2 study to treat prostate cancer; RHB-107, which is in Phase 2/3 study to treat outpatients infected with COVID-19 disease, and preclinical evaluation study to treat advanced unresectable cholangiocarcinoma, as well as has completed Phase 2 study to treat gastrointestinal and other solid tumors; RHB-104, which is in Phase 3 studies for Crohn's disease; RHB-102 (Bekinda) that is in Phase 3 studies for acute gastroenteritis and gastritis, and has completed Phase 2 studies for irritable bowel syndrome with diarrhea; and RHB-106, an encapsulated formulation for bowel preparation, which is preparing for Phase 2/3 study. RedHill Biopharma Ltd. was incorporated in 2009 and is headquartered in Tel Aviv, Israel.

How the Company Makes Money

RedHill Biopharma generates revenue through a combination of product sales, licensing agreements, and partnerships. The company's key revenue streams come from the commercialization of its proprietary drug products, which are sold to healthcare providers and patients. In addition, RedHill enters into strategic partnerships and licensing agreements with other pharmaceutical companies to develop and market its therapies, often receiving upfront payments, milestone payments, and royalties on future sales. These collaborations not only provide immediate financial support but also enhance the company's market reach and product pipeline. Furthermore, RedHill may benefit from government grants and funding for clinical trials that support its research and development efforts.

RedHill Biopharma Financial Statement Overview

Summary

RedHill Biopharma is facing significant financial challenges, with negative net profit margins, high leverage, and persistent negative cash flows. Despite minor improvements in some metrics, the company remains in a precarious financial position.

Income Statement

RedHill Biopharma's income statement reveals a challenging financial position with negative net profit margins and EBIT margins over the periods analyzed. Although there is a slight improvement in gross profit margin in the TTM, the company continues to face significant losses. Revenue growth is inconsistent, with a recent positive trend in TTM but overall declining from previous years.

Balance Sheet

The balance sheet shows a concerning financial structure with negative stockholders' equity and high leverage ratios in previous years. The debt-to-equity ratio has improved in the TTM, but the company still faces significant financial instability. Return on equity is negative, indicating inefficiencies in generating returns from shareholders' investments.

Cash Flow

Cash flow analysis indicates persistent negative operating and free cash flows, though there is a slight improvement in free cash flow growth in the TTM. The company's ability to cover net income with operating cash flow is weak, reflecting ongoing liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.55M	8.04M	6.53M	61.80M	85.76M	64.36M
Gross Profit	6.16M	4.85M	3.07M	28.46M	36.35M	27.47M
EBITDA	-7.91M	-7.59M	26.27M	-22.18M	-63.03M	-54.98M
Net Income	-9.31M	-8.27M	23.92M	-71.67M	-97.74M	-76.17M
Balance Sheet
Total Assets	18.38M	18.04M	23.05M	158.87M	181.19M	180.24M
Cash, Cash Equivalents and Short-Term Investments	2.87M	4.62M	6.36M	19.98M	38.00M	29.79M
Total Debt	214.00K	356.00K	1.17M	122.69M	87.81M	86.90M
Total Liabilities	22.79M	22.73M	20.98M	207.27M	172.31M	166.38M
Stockholders Equity	-4.41M	-4.68M	2.07M	-48.40M	8.88M	13.86M
Cash Flow
Free Cash Flow	-8.21M	-9.38M	-35.83M	-29.38M	-65.16M	-102.35M
Operating Cash Flow	-8.20M	-9.37M	-35.82M	-29.18M	-65.05M	-48.58M
Investing Cash Flow	-12.00K	-9.00K	3.99K	8.30M	-8.14M	-35.65M
Financing Cash Flow	3.78M	8.42M	21.38M	11.45M	73.46M	84.37M

RedHill Biopharma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDHL, the sentiment is Negative. The current price of 1.2 is above the 20-day moving average (MA) of 1.14, below the 50-day MA of 1.35, and below the 200-day MA of 1.84, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.85 is Neutral, neither overbought nor oversold. The STOCH value of 59.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RDHL.

RedHill Biopharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
UPC	51 Neutral	$2.41M	―	2.66%	―	-27.81%	―
SNOA	50 Neutral	$6.20M	-1.53	-76.14%	―	25.02%	55.11%
CPHI	45 Neutral	$5.07M	-1.03	-42.47%	―	-26.92%	69.90%
RDHL	40 Underperform	$3.60M	―	―	―	―	―
PRFX	34 Underperform	$2.11M	>-0.01	―	―	―	―
SHPH	32 Underperform	$2.16M	―	-9999.00%	―	―	79.31%

RedHill Biopharma Corporate Events

RedHill Biopharma Regains Nasdaq Compliance

RedHill Biopharma announced on December 1, 2025, that it successfully regained compliance with Nasdaq’s stockholders’ equity requirement as of November 26, 2025. This achievement supports RedHill’s strategic initiatives for 2025, including its partnership with Cumberland Pharmaceuticals and a focus on operational efficiency, potentially strengthening its market position and stakeholder confidence.

RedHill Biopharma Expands Offering of American Depositary Shares

On November 26, 2025, RedHill Biopharma Ltd. announced an increase in the maximum aggregate offering amount of its American Depositary Shares under an At The Market Offering Agreement with H.C. Wainwright & Co., LLC. This strategic move is expected to enhance the company’s financial flexibility and support its ongoing operations and growth initiatives in the competitive biopharmaceutical industry.

RedHill Biopharma Secures $10.5 Million Judgment Win

RedHill Biopharma announced that the New York Supreme Court’s judgment in favor of the company against Kukbo Co. Ltd is now final and enforceable, with no further appeals possible. The court awarded RedHill over $10.5 million, including $8.6 million in the main judgment and $1.9 million for legal fees and expenses, with interest continuing to accrue. Additionally, RedHill secured a Korean court attachment to prevent Kukbo from disposing of assets before judgment enforcement, potentially strengthening RedHill’s financial position and market confidence.

RedHill Biopharma Appeals Nasdaq Delisting Notice After Equity Boost

On October 16, 2025, RedHill Biopharma received a Nasdaq Staff Determination notification for not meeting the minimum stockholders’ equity requirements for continued listing. Following a transaction with Cumberland Pharmaceuticals, RedHill believes it now meets the equity requirement and plans to appeal the determination. The company remains listed on the Nasdaq Capital Market pending a hearing, but there is no guarantee of a favorable outcome or extension.

RedHill Biopharma Amends Purchase Agreement with Alumni Capital

On October 20, 2025, RedHill Biopharma amended its Any Market Purchase Agreement with Alumni Capital LP, increasing the ownership limit for Forward Purchase Notices from 4.99% to 9.99%. This amendment allows RedHill greater flexibility in capital raising through the sale of American Depositary Shares, potentially impacting its financial strategy and market positioning.

RedHill Biopharma Secures $4 Million Investment and U.S. Partnership for Talicia

On October 17, 2025, RedHill Biopharma announced a strategic partnership with Cumberland Pharmaceuticals, involving a $4 million investment for a 30% stake in Talicia Holdings, a subsidiary managing the global rights to Talicia®. This partnership includes a five-year co-commercialization agreement in the U.S., with both companies sharing net revenues and operational responsibilities. The collaboration aims to boost Talicia’s market presence and financial performance, reinforcing RedHill’s financial position and compliance with Nasdaq listing requirements.

RedHill Biopharma Secures $1.8 Million Middle East Deal for Talicia

On October 6, 2025, RedHill Biopharma announced a new licensing agreement for Talicia in the Middle East, potentially worth $1.8 million plus sales royalties. This deal includes $500,000 in guaranteed payments and aims to expand Talicia’s market presence in regions with high H. pylori prevalence, enhancing RedHill’s market positioning and addressing significant medical needs.

RedHill Biopharma Secures $10 Million Judgment in Legal Victory

On September 29, 2025, RedHill Biopharma announced that the New York Supreme Court upheld a $10 million judgment in its favor against Kukbo Co. Ltd., dismissing Kukbo’s defense and confirming RedHill’s compliance with agreement obligations. This legal victory, which includes awards for legal costs and interest, strengthens RedHill’s position in ongoing legal disputes and may have positive implications for its financial standing and stakeholder confidence.