National Treasure acquires stake in COVID-19 oral treatment developer 'RedHill'... Secures priority negotiation rights for distribution license

[Asia Economy Reporter Jang Hyowon] Kospi-listed company Gukbo announced on the 5th that it participated in a paid-in capital increase of the US/Israel biotechnology company RedHill Biopharma and acquired shares.

The investment for the share acquisition was made at $6.04 per ADS (American Depositary Share), with $5 million remitted on the 5th and an additional $5 million to be invested in the second phase. The ADS is listed on Nasdaq (code RDHL) and can be sold on the market after holding for six months post-listing.

Gukbo is known to have been granted the exclusive negotiation rights for distribution rights in Korea and major Asian regions for the oral COVID-19 treatment under development by RedHill.

The target substances under negotiation between Gukbo and RedHill are three: RHB-107 (Upamostat), Opaganib, and Talicia®. RHB-107 is an oral COVID-19 treatment for mild patients, Opaganib is an oral COVID-19 treatment for severe patients currently in clinical trials, and Talicia® is a treatment that eradicates Helicobacter pylori bacteria, having received FDA approval and is currently on sale.

RedHill announced that on October 4th, the results of a Phase 2/3 clinical trial on hospitalized patients with moderate COVID-19 showed that Opaganib reduced mortality by 62% compared to the placebo group. Additionally, the proportion of patients no longer requiring supplemental oxygen improved, and the time to discharge was significantly reduced.

Gukbo expects FDA Emergency Use Authorization (EUA) for Opaganib and the mild treatment candidate RHB-107 (Upamostat).

In particular, RHB-107 (Upamostat) shares a mechanism of action as a protease inhibitor with Pfizer’s oral COVID-19 treatment Paxlovid (PF-07321332), raising high expectations. Paxlovid has shown clinical trial results reducing hospitalization and mortality rates of confirmed patients by up to 89%.

Meanwhile, RedHill Biopharma is a Nasdaq-listed company based in the US, an emerging specialized biopharmaceutical company. It currently commercializes and sells three FDA-approved products: movantic®, Talicia®, and Aemcolo®, and is developing six new drugs including an oral COVID-19 treatment. According to foreign media, if RedHill succeeds in developing an oral COVID-19 treatment, it is expected to become a rival to US pharmaceutical company Merck.

Regarding this investment contract, RedHill CEO Dror Ben-Asher said, “We are pleased to have Gukbo as a strategic investor and look forward to receiving positive evaluations for Opaganib, RHB-107, and Talicia® in Korea and Asian countries with huge potential markets.”

Gukbo Chairman Hyun Ha stated, “We will do our best to actively utilize Gukbo’s local expertise and network to supply treatments not only domestically but also in the Asian region, playing the role of a ‘Game Changer’ in ending the COVID-19 pandemic with RedHill’s products.”