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RedHill Biopharma Ltd. (RDHL) currently does not have any approved product in its portfolio and is making efforts to invest in the development of its late-stage candidates.

RedHill Biopharma recently announced that it has entered into a definitive agreement with Broadfin Capital LLC. The agreement relates to the sale of  RedHill Biopharma’s American Depository Shares (ADSs) and warrants in a private placement transaction for $2.5 million (1 ADS = 10 ordinary shares).

RedHill Biopharma expects to use the proceeds from the sale for general working capital and development of its leading gastrointestinal candidates, RHB-104 for Crohn's disease and RHB-105 for Helicobacter pylori infection.

The private placement is expected to close by Jan 11, 2014. As per the agreement, upon closing, RedHill Biopharma will issue Broadfin Capital a total of 263,160 units. Each unit will consist of one ADS and a warrant to purchase 0.4 of an ADS, at a cost of $9.50 per Unit.

RedHill Biopharma will issue Broadfin Capital warrants to purchase 105,264 ADSs in total, which will have a three-year term and exercisable at a price of $11 per ADS.

A day before this transaction, RedHill Biopharma entered into an agreement with OrbiMed Israel Partners Limited Partnership for the sale of RedHill Biopharma’s ADSs and warrants in a private placement transaction for $6 million.

RedHill Biopharma currently carries a Zacks Rank #2 (Buy). Investors may consider companies like Jazz Pharmaceuticals (JAZZ - Analyst Report), Lannett Co., Inc. (LCI - Snapshot Report) and WuXi PharmaTech (Cayman) Inc. (WX - Snapshot Report). All three carry a Zacks Rank #1 (Strong Buy).

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