RALEIGH – RedHill Biopharma plans to acquire a gastrointestinal drug from AstraZeneca after arranging $115 million in financing from HealthCare Royalty Partners.
Both deals were announced early Tuesday.
The drug is Movantik, which treats opioid-induced constipation in adults with chronic non-cancer pain. It generated sales of $96 million in the U.S. in 2019, according to RedHill.
The company, which has operations in Raleigh and Tel-Aviv, Israel, concentrates on gastrointestinal drugs.
The deal is expected to close later this year. Sales in Europe, Canada and Israel are not included in the agreement.
RedHill will pay $52.5 million up front for the drug’s rights with another $15 million to be paid 18 months after closing.
