RedHill Biopharma (Nasdaq: RDHL) has divested its 70% stake in Talicia, an FDA-approved H. pylori eradication therapy, to a subsidiary of Canada-based Apotex Health Corp. (APTX) for USD 18 million in cash upfront plus up to USD 35 million in worldwide net sales milestones, for a total potential deal value of USD 53 million.
Talicia is a fixed-dose oral combination of omeprazole magnesium, amoxicillin, and rifabutin and was the first rifabutin-containing regimen approved by the US FDA for H. pylori infection. The product generated approximately USD 8 million in net revenue in 2024.
The transaction completes Apotex's consolidation of Talicia ownership through a two-step process. Apotex first acquired Cumberland Pharmaceuticals' 30% interest as part of a broader branded portfolio transaction that closed in July 2026, then separately acquired RedHill's remaining 70% stake roughly six weeks later. The additional USD 35 million payable to RedHill is tied to worldwide net sales thresholds rather than regulatory or clinical milestones.
The divestiture forms part of a broader repositioning of RedHill's gastrointestinal portfolio. A day after announcing the Talicia sale, the company acquired commercialization rights to Ferring Pharmaceuticals' Rebyota and Clenpiq for USD 12 million upfront. RedHill obtained exclusive global commercialization rights to Rebyota and exclusive US rights to Clenpiq, which together generated approximately USD 37.5 million in US net sales in 2025.
The USD 18 million Talicia upfront therefore more than covers RedHill's USD 12 million upfront payment to Ferring, leaving a USD 6 million difference before transaction costs and other cash requirements. Strategically, the company is exchanging its majority interest in a smaller commercial asset for rights to a larger combined revenue base while retaining potential participation in future Talicia sales through milestones.