Recipharm strikes development deal for RedHill's bacteria-fighter candidate

Swedish contractor Recipharm inked a deal with Israeli biotech RedHill Biopharma ($RDHL) to produce the company's leading drug candidate for clinical trials and an expected commercial launch.

RedHill's candidate, RHB-105, treats Helicobacter pylori (H. pylori) bacterial infections--a market estimated at $4.8 billion--and includes a fixed dose of antibiotics and a proton pump inhibitor in one oral capsule, the companies said in a statement. The treatment has already shown promise in clinical trials, meeting its primary endpoint in its first Phase III study in June.

Under the terms of the deal, Recipharm will supply the drug for clinical trials and will also provide an ongoing future commercial supply once RedHill gets FDA and EU approval for the drug. Recipharma's two FDA-approved facilities in France will manufacture the proton pump inhibitor mini-tablets, and the company's factory in Stängnäs, Sweden, will prepare the final product.

To get the ball rolling, Recipharam will sink 13 million kronor ($1.55 million) into manufacturing and will register its Stängnäs facility with the FDA, the companies said in a statement.

Erik Haeffler

"This is a fantastic example of how Recipharm has been able to offer an integrated solution to solve a complex manufacturing project. We are looking forward to working on this project and supporting a successful clinical trial and launch of RHB-105," Erik Haeffler, Recipharma's VP of manufacturing, said in a statement.

Meanwhile, the company is hot on the M&A trail since going public last year. Recipharm has shelled out more than $300 million in multiple buyouts geared toward expanding its footprint in Europe, including a 15.1 million kronor ($6.2 million) acquisition of Swedish CRO OnTarget Chemistry.

Recipharm is also strengthening its existing relationships to boost business. In July, the company spent 8 million Swedish kronor ($1 million) for a 25% stake in partner Pharmanest, deepening its ties with the biotech as the two companies develop a pain drug.

- read the statement