Salix, RedHill Biopharma announce exclusive license agreement for RHB-106 Salix Pharmaceuticals (SLXP) and RedHill Biopharma (RDHL) announced that they have entered into an exclusive agreement by which Salix has licensed the worldwide exclusive rights to RedHill's RHB-106 encapsulated formulation for bowel preparation and rights to other purgative developments. Financial terms of the transaction include an upfront payment of $7M and $5M in subsequent milestone payments to RedHill. Salix also has agreed to pay RedHill tiered royalties on net sales, ranging from low single-digit up to low double-digits. Under the worldwide license agreement, the parties also agreed on potential strategic collaboration with regard to certain other Salix products in specific territories.
Salix upgraded to Buy from Neutral at UBS UBS upgraded Salix Pharmaceuticals to Buy saying it believes management has a better handle on inventory levels than investors think. The sees opportunity at current share levels and lowered its price target for shares to $116 from $160.