Tel Aviv-based RedHill Biopharma Ltd.’s stock (RDHL, +1.65%) surged 10% in premarket trading following the announcement of receiving an additional $1.7 million in funding from the U.S. government. The funding will support RedHill’s partner, Apogee, in the development of a potential treatment for gastrointestinal acute radiation syndrome.
Government Grant Supports Development of Opaganib
The Small Business Innovation Research fund has allocated the grant to advance the research and development of opaganib, an oral, small molecule pill with a remarkable shelf life of five years. Instead of relying on human efficacy trials, the treatment is being developed based on animal model efficacy studies, aiming for approval by the U.S. Food and Drug Administration (FDA).
Addressing Challenges of Acute Radiation Syndrome
Against the backdrop of ongoing regional geo-political instabilities, RedHill Biopharma recognizes the significance of consolidating the various aspects of opaganib’s development as a potential medical countermeasure for acute radiation syndrome. Dror Ben-Asher, CEO of RedHill, emphasizes the importance of integrating the development jigsaw pieces to tackle this critical condition effectively.
Opaganib: A Multi-purpose Treatment
In addition to its potential as a gastrointestinal acute radiation syndrome treatment, opaganib is also being evaluated as a possible therapeutic option for COVID-19 and other medical indications. RedHill Biopharma remains committed to exploring the broad spectrum of applications for this innovative medication.
A Solution for Rare but Severe Situations
While radiation sickness is a rare occurrence, the consequences can be devastating in the event of a nuclear accident or attack. RedHill’s collaboration with government funding programs highlights their dedication to addressing these challenging situations and providing effective treatments.
Stock Performance
RedHill Biopharma’s U.S.-listed stock has experienced a decline of 67% year to date. In comparison, the S&P 500 (SPX, -0.68%) has shown an 18% gain during the same period.
