RedHill Biopharma Ltd. (TASE:RDHL), an Israeli biopharmaceutical company focusing primarily on development and acquisition of late clinical stage, patent-protected, new formulations and combinations of existing drugs, reported the completion of a private placement in a total amount of approximately $6.5 million.
The proceeds will be used to advance the Company's late clinical stage programs, including a Phase III clinical trial with RHB-104 for the treatment of Crohn's disease, planned to begin in the first half of 2013, and a Phase II/III trial with RHB-105 for the eradication of H. pylori bacteria, planned to begin in the first quarter of 2013. The Company further plans to commence a Phase IIa clinical trial with RHB-104 for the treatment of Multiple Sclerosis in January 2013.
Participants in the financing included, among others, Company directors Mr. Dan Suesskind (Teva Pharmaceuticals' former CFO) and Dr. Shmuel Cabilly (inventor of the "Cabilly Patents"), Prof. Hezi Bernholz (co-inventor of the cancer drug Doxil®), Koramic Finance Company NV, Marathon Investments Ltd. and the Hebrew University Provident Fund.
Following the financing, the Company's cash balance increases to approximately $19 million ahead of the Company's contemplated ADR (American Depository Receipt) listing on NASDAQ. The Company does not plan to raise additional capital as part of the NASDAQ listing process.