RedHill gains on decision to stop Phase 3 program for anti-bacterial agent

• Israel-based RedHill Biopharma (NASDAQ:RDHL) added ~4% pre-market Monday after announcing plans to terminate a U.S. Phase 3 study for RHB-204 targeted at non-tuberculosis mycobacteria (NTM) disease in favor of a trial for a COVID candidate.
• The company attributed the decision to very slow enrolment in the NTM trial. It also announced plans to shift resources to the late development of its once-daily oral protease inhibitor RHB-107 for outpatient treatment of COVID.
• Additionally, RDHL’s Chief Operating Officer Gilead Raday noted that current negative biotech sentiment and the state of financial markets also prompted the company to axe the NTM program and instead focus on the COVID candidate.
• As previously disclosed, the company is seeking an out-licensing partner for RHB-204.

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