Ahead of its planned IPO in Tel Aviv at the end of 2010, RedHill Biopharma Ltd. continues to buy rights of drugs in development. Sources inform "Globes" that RedHill has paid several million shekels to Australian company Giaconda for a Crohn's disease treatment and two treatments for digestive problems.

RedHill has also agreed to pay the Australian company royalties. RedHill will also pay the costs of additional clinical trials required by the US Food and Drug Administration (FDA).

RedHill is developing and commercializing treatments and products in advanced stages of clinical trials. This is the fourth deal for the purchase of drugs' rights concluded by RedHill over the past six months. The previous deals involved treatments for the prevention of nausea and vomiting in chemotherapy, swift treatment of migraines and heart failure.

RedHill will use a fund raising round of $4 million which it is just closing in order to finance the deal with Giacanda.

Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2010

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