RedHill Biopharma (RDHL) AI Stock Analysis

• Market Cap: $4.50M
• Dividend Yield: N/A
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• 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: 0.15
• 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

• Rating: 39 Underperform
• Price Target: $1.50 ▲(11.11% Upside)

RedHill Biopharma's overall stock score is primarily impacted by its challenging financial performance, marked by consistent losses and high leverage. Technical analysis further indicates bearish momentum, while the lack of valuation metrics adds uncertainty. The absence of earnings call insights and corporate events means these factors do not influence the score.

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. The company shows inconsistent revenue growth with recent declines, negative net profit margins due to high EBIT losses, and operational inefficiencies. The balance sheet indicates potential financial distress with negative stockholders' equity and high leverage. Cash flow statements reveal negative operating and free cash flows, highlighting financial strain and insufficient cash generation from operations.

Income Statement

The company's revenue has shown inconsistent growth with recent declines from previous highs. The gross profit margin has been relatively healthy, but the net profit margin is negative due to high EBIT losses, indicating challenges in managing costs effectively. There is a significant negative EBIT and EBITDA margin, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity in recent years, indicating potential financial distress. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is negative, suggesting high leverage and risk.

Cash Flow

Cash flow statements show negative operating and free cash flows, indicating cash burn and financial strain. Despite positive financing cash flows, the operating cash flow to net income and free cash flow to net income ratios are negative, pointing to insufficient cash generation from operations.

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: 1.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.35 is below the 20-day moving average (MA) of 1.68, below the 50-day MA of 1.63, and below the 200-day MA of 2.50, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 36.78 is Neutral, neither overbought nor oversold. The STOCH value of 2.97 is Positive, 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 *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
UPC	―	$2.82M	―	2.66%	―	-27.81%	―
SNOA	―	$6.52M	-1.61	-78.73%	―	17.43%	75.52%
CPHI	―	$5.64M	-1.15	-52.05%	―	-29.64%	73.63%
RDHL	―	$4.50M	―	―	―	―	―
PRFX	―	$2.50M	―	―	―	―	―
SHPH	―	$3.27M	―	-551.04%	―	―	31.53%

RedHill Biopharma Corporate Events

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.

RedHill Biopharma Reports Strong First Half 2025 Results and Strategic Advances

RedHill Biopharma reported significant progress in the first half of 2025, marked by strategic, financial, and operational advancements. The company initiated a Phase 2 study for prostate cancer and received positive FDA feedback for a groundbreaking Crohn’s disease program. Financially, RedHill doubled its gross profit and increased net revenues by 59% compared to the first half of 2024, despite reducing operational costs. The company also secured a $60 million out-licensing deal and achieved legal victories, enhancing its market position and financial stability.

RedHill Biopharma Secures Additional $1.8 Million in Legal Costs from New York Supreme Court

On August 20, 2025, RedHill Biopharma announced that the New York Supreme Court awarded the company approximately $1.82 million in legal costs and expenses in addition to a prior summary judgment of $8.25 million against Kukbo Co. Ltd. This legal victory, which includes a 9% ongoing statutory interest accrual, strengthens RedHill’s financial position and could impact its operations positively. Additionally, RedHill secured an attachment grant from Korea’s Incheon District Court, allowing for the seizure of Kukbo’s assets, which further solidifies its legal standing. Kukbo has appealed the summary judgment decision, with oral arguments scheduled for September.

RedHill Biopharma Secures $1.1 Million from Talicia’s First International Sales

On August 18, 2025, RedHill Biopharma announced it received its first milestone payment of $1.1 million for Talicia’s sales outside the U.S. following its commercial launch in 2024. Talicia, a leading therapy for H. pylori infection, addresses the high resistance rates of the bacteria to other antibiotics, offering a significant advancement in treatment. This milestone highlights RedHill’s strategic expansion and potential for additional revenue streams through global partnerships, reinforcing its position in the pharmaceutical industry.

RedHill Biopharma Granted Nasdaq Compliance Extension

On August 8, 2025, RedHill Biopharma Ltd. received an extension from Nasdaq to regain compliance with the Nasdaq Listing Rule 5550(b), which mandates a minimum stockholders’ equity of $2,500,000 for continued listing. Previously, on April 15, 2025, RedHill was notified of non-compliance and subsequently submitted a plan to address the deficiency. The extension provides the company until October 13, 2025, to meet the requirement, with the possibility of appealing for further time if needed. This development is crucial for RedHill’s market positioning and operational continuity, as maintaining its Nasdaq listing is vital for investor confidence and access to capital markets.