Cumberland invests $4 million for 30% stake in RedHill’s Talicia business

RALEIGH, N.C. - Cumberland Pharmaceuticals Inc. (NASDAQ:CPIX), which has seen its stock surge 175% over the past year according to InvestingPro data, has invested $4 million to acquire a 30% ownership stake in RedHill Biopharma’s (NASDAQ:RDHL) Talicia business, according to a press release statement issued Monday. The company enters this deal from a position of financial strength, maintaining more cash than debt on its balance sheet.

Under the strategic partnership, the companies will share joint control of the Talicia business, with RedHill retaining 70% ownership. The companies have also entered into a U.S. co-commercialization agreement with equal sharing of the product’s net revenues. This move aligns with Cumberland’s growth trajectory, as InvestingPro data shows the company achieved 11.3% revenue growth in the last twelve months, with a robust gross profit margin of 84%.

Talicia is an FDA-approved treatment for Helicobacter pylori (H. pylori) infection in adults. The medication is currently the top branded H. pylori therapy prescribed by U.S. gastroenterologists and is listed as a first-line therapy in American College of Gastroenterology Clinical Guidelines.

Cumberland will provide its national sales force to enhance Talicia’s marketing and promotional activities. The partnership aims to deliver cost reductions through shared responsibility for sales, marketing, manufacturing, supply, regulatory and administrative operations.

"This strategic partnership provides an excellent growth opportunity for RedHill and for Cumberland, a highly capable and driven partner with a strong gastroenterology market presence," said Dror Ben-Asher, RedHill’s CEO.

The transaction is expected to help RedHill regain compliance with Nasdaq’s minimum stockholders’ equity requirement of $2.5 million for continued listing.

Talicia is patent protected through 2042 and has received eight years of U.S. market exclusivity under its Qualified Infectious Disease Product designation.

H. pylori infection affects approximately 35% of the U.S. adult population and is classified by the World Health Organization as a Group 1 carcinogen, representing a significant risk factor for gastric cancer. For investors seeking deeper insights into Cumberland Pharmaceuticals’ market position and growth potential, InvestingPro offers comprehensive analysis through its Pro Research Report, featuring detailed financial health metrics and expert analysis among its suite of 1,400+ company reports.

In other recent news, Cumberland Pharmaceuticals reported a 10% year-over-year increase in revenue for Q2 2025, reaching $10.8 million. However, the company experienced a setback with its earnings per share (EPS), which fell short of expectations, resulting in a loss of $0.02. In a separate development, Cumberland’s injectable ibuprofen received regulatory approval in Mexico. This approval is part of a partnership with PiSA Farmaceutica, which holds exclusive supply and distribution rights in the country. Cumberland provides regulatory and manufacturing support, while PiSA will manage the product launch in Mexico. These recent developments highlight both the financial challenges and expansion efforts of Cumberland Pharmaceuticals.

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