RDHL - RedHill rises on plans to settle debt in exchange for rights to constipation drug Movantik
- RedHill Biopharma ( NASDAQ: RDHL ) stock rose ~9% on Monday after the company said it reached a non-binding agreement with HCR Collateral Management to settle all debt obligations in exchange for rights to constipation drug Movantik (naloxegol).
- The potential transaction is aimed at extinguishment of all obligations under a 2020 credit agreement between RedHill's U.S. subsidiary RedHill Biopharma and HCR.
- RedHill added that it will retain substantially all pre-closing liabilities relating to Movantik and HCR would assume substantially all post-closing liabilities.
- The definitive agreements are expected to be signed and the transaction is expected to close by year-end, but RedHill noted that there can be no assurance that this would.
- Movantik is used to treat constipation which is caused by opioid pain drugs in adults with long-lasting pain that is not caused by active cancer.
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RedHill rises on plans to settle debt in exchange for rights to constipation drug Movantik