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RedHill Biopharma Reports 2013 Fourth Quarter And Year-End Financial Results

Stocks in this article: RDHL

2013 Key Highlights Include:

  • Strong cash position of over $34 million, as of February 2014, following two private placements in early 2014 and the exercise of warrants, including by directors and management
  • Net R&D expenses of $8.1 million during 2013, compared to $6.5 million in 2012
  • Substantial progress in clinical development, including the commencement of Phase III clinical studies in the U.S. with RHB-104 for the treatment of Crohn's disease and RHB-105 for the treatment of H. pylori bacterial infection

TEL-AVIV, Israel, Feb. 25, 2014 (GLOBE NEWSWIRE) -- RedHill Biopharma Ltd. (Nasdaq:RDHL) (TASE:RDHL) (the "Company" or "RedHill"), an emerging Israeli biopharmaceutical company focused primarily on the development and acquisition of late clinical-stage, proprietary formulations and combinations of existing drugs for the treatment of inflammatory and gastrointestinal diseases including cancers and related conditions, today reported financial results for the year ended December 31, 2013.

Financial highlights for the year ended December 31, 2013 and for the Fourth Quarter of 2013:

Research and Development Expenses , net for the year ended December 31, 2013 were approximately $8.1 million ($9.1 million gross), an increase of $1.6 million, or approximately 25%, compared to $6.5 million for the year ended December 31, 2012. Research and Development Expenses, net for the quarter ended December 31, 2013 were approximately $2.6 million, compared to $1.2 million in the comparable quarter of 2012 and $2.2 million in the third quarter of 2013. The increase was mainly due to the commencement of the Phase III clinical studies with RHB-104 (Crohn's disease) and RHB-105 ( H. pylori) and the ongoing Phase IIa study with RHB-104 in multiple sclerosis (MS).

General and Administrative Expenses for the year ended December 31, 2013 were approximately $2.7 million, an increase of $0.1 million, or approximately 4%, compared to $2.6 million for the year ended December 31, 2012. The increase was mainly due to the recruitments of new employees, and was partially offset by a decrease in share-based payments. General and Administrative Expenses for the quarter ended December 31, 2013 as well as the comparable quarter of 2012 were approximately $0.9 million, compared to 0.5 million in the third quarter of 2013. The increase in the fourth quarter of 2013 was mainly due to costs related to payroll expenses, professional services and travel expenses.

Operating Loss for the year ended December 31, 2013 was approximately $10.8 million, an increase of $1.8 million, or approximately 20%, compared to $9 million for the year ended December 31, 2012. Operating loss for the quarter ended December 31, 2013 was $3.4 million, compared to $2.4 million in the comparable quarter of 2012 and $2.7 million in the third quarter of 2013. The increase was mainly due to Research and Development Expenses.

Net Cash Used in Operating Activities for the year ended December 31, 2013 was approximately $8.4 million, an increase of $1.4 million compared to the year ended December 31, 2012. The increase was mainly due to research and development activities. Net Cash Used in Operating Activities for the quarter ended December 31, 2013 was $2.5 million, compared to $1.5 million in the comparable quarter of 2012 and $2.1 million in the third quarter of 2013. The increase was mainly due Research and Development Expenses, net.

Cash Resulting from Financing Activities for the year ended December 31, 2013 was approximately $2.3 million, a decrease of $4.3 million, or approximately 65%, compared to $6.6 million for the year ended December 31, 2012. The Cash Resulting from Financing Activities in 2013 resulted primarily from the exercise of warrants, whereas in 2012 it resulted primarily from the private financing transaction that closed in January 2013.

Cash Balance 1 as of December 31, 2013 was approximately $12.1 million, a decrease of $6.3 million, or approximately 34%, compared to $18.4 million as of December 31, 2012 and a decrease of $1.6 million, approximately 12%, compared to $13.7 million as of September 30, 2013.

Ori Shilo, Deputy CEO, Finance and Operations said:"RedHill achieved important milestones in 2013. We recently closed two private placements with leading global healthcare investment firms and Israeli institutional investors, for a total of approximately $20 million. In addition, during 2013 and up to February 2014 we received approximately $6.7 million from the exercise of warrants and options, including exercise of warrants by directors and management. As of February 2014, RedHill has over $34 million in cash. This strong cash position, together with the continuing support from our shareholders, allow us to continue advancing our strategic plans and we look forward to achieving additional important milestones in 2014."

1 Including cash, bank deposits and short-term investments.

Key operational highlights for the year ended December 31, 2013:

1. In June 2013, the Company initiated the CEASE-MS study - a Phase IIa, proof of concept, clinical study, to assess the efficacy and safety of RHB-104 as an add-on therapy to interferon beta-1a in patients treated for relapsing remitting multiple sclerosis (RRMS).

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