RedHill Biopharma(RDHL) - 2024 Q4 - Annual Report

Financial Performance - Net revenues for the year ended December 31, 2024, increased by 23% to $8.0 million, up from $6.5 million in 2023[7] - Talicia net revenues rose to $9.0 million in 2024 from $8.8 million in 2023, driven by approximately $1.0 million from the UAE partnership[9] - Gross profit for 2024 was $4.851 million, compared to $3.071 million in 2023, reflecting a significant improvement in profitability[46] - Financial income for 2024 was $8.401 million, a decrease from $20.889 million in 2023, indicating fluctuations in financial performance[46] - The company reported a net loss of $8,268,000 for 2024, compared to a profit of $23,916,000 in 2023[50] Cash Flow and Expenses - Cash burn was reduced by 74% year-over-year, with net cash used in operations dropping to $9.4 million from $35.8 million in 2023[7] - R&D expenses for 2024 were $1.6 million, significantly lower than $3.5 million in 2023, due to cost-reduction measures[11] - Selling and marketing expenses were reduced to $5.950 million in 2024, down from $14.756 million in 2023, highlighting a strategic shift in marketing efforts[46] - Net cash used in operating activities was $(9,369,000) in 2024, compared to $(35,820,000) in 2023, showing an improvement in cash flow management[50] Assets and Liabilities - Total assets decreased to $18.0 million as of December 31, 2024, down from $23.0 million in 2023[17] - Total liabilities increased to $22.7 million as of December 31, 2024, compared to $21.0 million in 2023[18] - Cash and cash equivalents decreased from $5,569,000 in 2023 to $4,617,000 in 2024, a reduction of 17.1%[50] - The total equity position shifted from a positive $2,069,000 in 2023 to a negative $(4,683,000) in 2024, reflecting a capital deficiency[48] Research and Development - The company initiated a Bayer-supported Phase 2 study of opaganib in combination with darolutamide for metastatic castrate-resistant prostate cancer[26] - RHB-204 is expected to advance to a Phase 2 study, targeting MAP-positive Crohn's disease patients, with FDA guidance anticipated soon[32] - Opaganib has shown potential in multiple indications, including a projected market worth approximately $100 billion for diabetes and obesity-related disorders[31] - The company is actively pursuing funding opportunities and partnerships to support the advancement of its late-stage RHB-204 program[32] Operational Challenges - Operating loss for 2024 was $14.6 million, compared to an operating income of $12.6 million in 2023, influenced by the Movantik divestiture[14] - The company reported an operating loss of $14.613 million for 2024, compared to an operating income of $12.632 million in 2023, reflecting challenges in operational efficiency[46] - The accumulated deficit grew from $(407,735,000) in 2023 to $(414,801,000) in 2024, indicating a worsening financial position[48] Inventory and Accounts Payable - The company experienced a decrease in inventory from $4,389,000 in 2023 to $3,651,000 in 2024, a decline of 16.8%[48] - The company reported a decrease in accounts payable from $3,278,000 in 2023 to $1,168,000 in 2024, a reduction of approximately 64.3%[48] Market Position - Talicia was included as a first-line option in the updated 2024 ACG Clinical Guideline, securing 25 million covered lives[23] - Proceeds from issuance of ordinary shares and warrants amounted to $8,263,000 in 2024, down from $13,959,000 in 2023[50]