RedHill Biopharma announces exclusive US co-promotion agreement with Concordia for GI drug Donnatal

Concordia will continue to be responsible for the manufacturing and supply of Donnatal in all territories.

Under the terms of the agreement, RedHill will be responsible for certain promotional activities related to Donnatal. Concordia will continue to be responsible for the manufacturing and supply of Donnatal in all territories. Donnatal accounted for 7.7% of Concordia’s consolidated revenues in the first half of 2016. RedHill and Concordia will share the revenues generated from the promotion of Donnatal by RedHill based on an agreed upon split between them. The initial term of the co-promotion agreement with Concordia is for 3 years. RedHill expects to initiate gradual promotion of Donnatal in the coming months.

Dror Ben-Asher, CEO of RedHill, said: “We are pleased to partner with Concordia for the US promotion of Donnatal, a trusted brand among physicians for symptoms of IBS and acute enterocolitis. With a core US commercial team in place, we plan to initiate promotional activities in the US in the coming months with a specialty gastrointestinal sales force. RedHill’s strategic transition into a revenue-generating, gastrointestinal-focused, specialty pharmaceutical company with commercial presence in the US, is planned to support potential future commercialization of our Phase III-stage potential blockbusters BEKINDA for gastroenteritis and other GI indications, RHB-105 for H. pylori infection and RHB-104 for Crohn’s disease, if approved by FDA.”

“This agreement is a cost-effective approach to promoting Donnatal in a manner consistent with our long-term strategic focus on operational excellence,” said Allan Oberman, CEO of Concordia. “RedHill’s commercial team is highly motivated and has previous experience in gastroenterology sales. We look forward to partnering with them to market Donnatal to more key prescribers who we believe can help raise the product’s profile and potentially allow us to reach more patients in the US.”