RedHill Biopharma Ltd. (NASDAQ: RDHL) is a biotech player which holds expertise in the infectious and gastrointestinal disease category. However, since 2020, the company has found its calling in the treatment of Covid-19 and has recently published a breakthrough study, that has sent RDHL stock price soaring. This comes in addition to its already strong financial position.
RedHill Biopharma Shows Positive Results in Covid-19 Study
RedHill Biopharma Ltd. (RDHL) recently shared data regarding its phase 2 RHB-107 study, aimed towards treating Covid-19. Researchers carried out this study in the investigation of symptomatic, non-hospitalized Covid patients, and came under peer review and was published in the renowned, International Journal of Infectious Diseases. As the market saw that each of the primary endpoints was met, RDHL surged in the market, taking it up from $0.13 to $0.18. It was apparent that RedHill’s treatment against Covid-19 is a dynamic entrant into the market, which promises superior efficacy, tolerability as well as safety to its patients.
RDHL’s Wider Financial Strengths
In addition to the company’s recent update on its RHB-107 study, it also holds tremendous investment appeal, especially in light of its wider financial strengths. The outbreak of the Covid-19 pandemic had proven to be a breakthrough for the company, as its revenue exploded more than ten-fold, from $6.3 million to over $64 million, whereas the annual sales figure by the end of 2021 came in at $86 million. Its management has used this surging performance to extremely strengthen its balance sheet, and overall financial position, by completely writing off its long-term debt of $84 million. Despite this, it holds over $15 million in cash and $36 million in receivables.
RDHL is a great biopharmaceutical pick for anyone seeking exposure to this dynamic domain. The fact that it saw explosive growth with the outbreak of the Covid-19 pandemic, it is highly capable of executing a sound, forward-looking growth strategy.