RedHill Biopharma Receives Nasdaq Staff Determination Notification

Rhea-AI Summary

RedHill Biopharma (Nasdaq: RDHL) received a Nasdaq Staff Determination notification on October 16, 2025 that the company did not meet the minimum stockholders' equity requirement under Listing Rule 5550(b)(1) by the compliance date of October 13, 2025.

RedHill said it intends to request a hearing before the Nasdaq Listing Qualifications Panel and that, following a transaction with Cumberland Pharmaceuticals announced October 20, 2025, it believes its stockholders' equity now exceeds the $2.5 million minimum. Submission of a hearing request will stay any delisting or suspension action and RedHill remains listed pending the Panel decision. There is no assurance the Panel will grant an extension or rule in RedHill's favor.

Positive

• Company believes stockholders' equity now exceeds $2.5 million
• Hearing request will stay any delisting or suspension pending decision

Negative

• Nasdaq determined non-compliance with Minimum Equity Requirement as of Oct 13, 2025
• Company received Staff Determination on Oct 16, 2025
• No assurance the Panel will grant an extension or favorable outcome

Insights

Corporate finance analyst

Listing non-compliance confirmed; transaction may restore the required equity but outcome is uncertain.

Nasdaq issued a Staff Determination that the company missed the Minimum Equity Requirement as of Oct. 13, 2025. The company reports a transaction with Cumberland Pharmaceuticals Inc. on October 20, 2025 that it believes raises stockholders' equity above $2.5 million, and it will request a hearing to stay delisting.

The business mechanism at play is regulatory compliance tied to a quantitative threshold; meeting the $2.5 million minimum directly affects continued listing. The company has invoked the Nasdaq hearing process, which either confirms compliance or grants up to a 180-day cure period.

Key dependencies and risks include the Panel's verification of the reported post-transaction equity and whether documentation satisfies Nasdaq standards; the company states no assurance of a favorable outcome. Watch for the formal hearing request timing, any Panel decision, and disclosure of audited or reconciled equity figures within the next 180 days.

Listing compliance specialist

Regulatory remedy pursued; procedural stay obtained by requesting a hearing, but final outcome remains open.

Nasdaq Listing Rule 5550(b)(1) non-compliance triggered a Staff Determination on October 16, 2025, following an earlier notice and an extension to Oct. 13, 2025. The company plans to appeal to the Nasdaq Listing Qualifications Panel under the 5800 Series to argue regained compliance.

The crucial point is documentary proof of restored equity after the transaction announced on October 20, 2025. The Panel can either accept the company\'s showing or grant up to a 180-day extension; the filing of a hearing request stays delisting or suspension. Primary near-term items to monitor are the hearing request filing, the Panel's review schedule, and any filing that quantifies post-transaction equity.

On October 16, 2025, the Company received a Staff Determination notification from The Nasdaq Stock Market LLC regarding continued non-compliance with the minimum stockholders' equity requirements for continued listing, pursuant to Listing Rule 5550(b)(1) 

Following RedHill's transaction with Cumberland Pharmaceuticals Inc., announced October 20, 2025, the Company believes that its stockholders' equity now exceeds the minimum $2.5 million requirement and that it is well positioned to maintain compliance

 The Company intends to appeal Staff's determination to a Hearings Panel,pursuant to the Nasdaq Listing Rule 5800 Series and present its case. The Panel has the authority to determine whether the Company has regained compliance or to grant up to a 180-day extension to regain compliance 

Submission of a hearing request will stay any delisting or suspension action of the Company's American Depositary Shares, and RedHill remains listed and traded on the Nasdaq Capital Market, pending the hearing 

There can be no assurance that the Panel will grant an extension of the compliance period or that the outcome of the hearing will be favorable to the Company

TEL AVIV, Israel and RALEIGH, N.C., Oct. 22, 2025 /PRNewswire/ -- RedHill Biopharma Ltd. (Nasdaq: RDHL) ("RedHill" or the "Company"), a specialty biopharmaceutical company, today announced that on October 16, 2025, it received a Nasdaq Staff Determination letter indicating that the Company had not met the minimum stockholders' equity requirements ("Minimum Equity Requirement") for continued listing, pursuant to Listing Rule 5550(b)(1), by the required compliance date of October 13, 2025.

The Company intends to appeal Staff's determination at a hearing before the Nasdaq Listing Qualifications Panel (the "Panel") and present its position.  The Panel has the authority to determine whether the Company has regained compliance or grant up to a 180-day extension to regain compliance.

On April 17, 2025, Nasdaq notified the Company that it was no longer in compliance with the Minimum Equity Requirement and on August 8, 2025, Nasdaq granted an extension letter granting the Company additional time until October 13, 2025, to regain compliance.

Following RedHill's transaction with Cumberland Pharmaceuticals Inc., announced October 20, 2025, the Company believes that its stockholders' equity now exceeds the minimum $2.5 million and that it is well positioned to maintain compliance.

The submission of a hearing request will stay any delisting or suspension action of the American Depositary Shares. RedHill remains listed and traded on the Nasdaq Capital Market pending Nasdaq Panel decision.

There can be no assurance that the Panel will grant an extension or that the outcome of the hearing will be favorable to the Company.

About RedHill Biopharma 

RedHill Biopharma Ltd. (Nasdaq: RDHL) is a specialty biopharmaceutical company primarily focused on U.S. development and commercialization of drugs for gastrointestinal diseases, infectious diseases and oncology. RedHill promotes the FDA approved gastrointestinal drug Talicia^®, for the treatment of Helicobacter pylori (H. pylori) infection in adults^[1]. RedHill's key clinical late-stage development programs include: (i) opaganib (ABC294640), a first-in-class, orally administered sphingosine kinase-2 (SPHK2) selective inhibitor with anti-inflammatory, antiviral, and anticancer activity, targeting multiple indications with U.S. government and academic collaborations for development for radiation and chemical exposure indications such as GI-Acute Radiation Syndrome (GI-ARS), a Phase 2/3 program for hospitalized COVID-19, and a Phase 2 study in prostate cancer in combination with darolutamide; (ii) RHB-204, a next-generation optimized formulation of RHB-104, with a planned Phase 2 study for Crohn's disease (based on RHB-104's positive Phase 3 Crohn's disease study results) and Phase 3-stage for pulmonary nontuberculous mycobacteria (NTM) disease; (iii) RHB-107 (upamostat), an oral broad-acting, host-directed, serine protease inhibitor with potential for pandemic preparedness, is in late-stage development as a treatment for non-hospitalized symptomatic COVID-19 and is also targeting multiple other cancer and inflammatory gastrointestinal diseases; and (iv) RHB-102, with potential UK submission for chemotherapy and radiotherapy induced nausea and vomiting, positive results from a U.S. Phase 3 study for acute gastroenteritis and gastritis and positive results from a U.S. Phase 2 study for IBS-D. RHB-102 is partnered with Hyloris Pharma (EBR: HYL) for worldwide development and commercialization outside North America.

More information about the Company is available at www.redhillbio.com / X.com/RedHillBio.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may discuss investment opportunities, stock analysis, financial performance, investor relations, and market trends. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Forward-looking statements include statements regarding the strategic transaction with Cumberland and are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control and cannot be predicted or quantified, and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation: the risk that the Staff Determination Notification from the Nasdaq LLC may not be withdrawn and that the Company may be delisted from the Nasdaq Capital Market; the risk that the strategic transaction with Cumberland will not bring the currently anticipated benefits to RedHill's global Talicia business or to RedHill's financial position, costs or its broader strategic objectives; the Company's ability to maintain compliance with the Nasdaq Capital Market's listing requirements; the risk that the addition of new revenue generating products or out-licensing transactions will not occur; the risk of current uncertainty regarding U.S. government research and development funding and that the U.S. government is under no obligation to continue to support development of our products and can cease such support at any time; the risk that acceptance onto the RNCP Product Development Pipeline or other governmental and non-governmental development programs will not guarantee ongoing development or that any such development will not be completed or successful; the risk that the FDA does not agree with the Company's proposed development plans for its programs; the risk that the Company's development programs and studies may not be successful and, even if successful, such studies and results may not be sufficient for regulatory applications, including emergency use or marketing applications, and that additional studies may be required; the risk that the Company will not successfully commercialize its products; as well as risks and uncertainties associated with (i) the initiation, timing, progress and results of the Company's research, manufacturing, pre-clinical studies, clinical trials, and other therapeutic candidate development efforts, and the timing of the commercial launch of its commercial products and ones it may acquire or develop in the future; (ii) the Company's ability to advance its therapeutic candidates into clinical trials or to successfully complete its pre-clinical studies or clinical trials or the development of any necessary commercial companion diagnostics; (iii) the extent and number and type of additional studies that the Company may be required to conduct and the Company's receipt of regulatory approvals for its therapeutic candidates, and the timing of other regulatory filings, approvals and feedback; (iv) the manufacturing, clinical development, commercialization, and market acceptance of the Company's therapeutic candidates and Talicia; (v) the Company's ability to successfully commercialize and promote Talicia; (vi) the Company's ability to establish and maintain corporate collaborations; (vii) the Company's ability to acquire products approved for marketing in the U.S. that achieve commercial success and build its own marketing and commercialization capabilities; (viii) the interpretation of the properties and characteristics of the Company's therapeutic candidates and the results obtained with its therapeutic candidates in research, pre-clinical studies or clinical trials; (ix) the implementation of the Company's business model, strategic plans for its business and therapeutic candidates; (x) the scope of protection the Company is able to establish and maintain for intellectual property rights covering its therapeutic candidates and its ability to operate its business without infringing the intellectual property rights of others; (xi) parties from whom the Company licenses its intellectual property defaulting in their obligations to the Company; (xii) estimates of the Company's expenses, future revenues, capital requirements and needs for additional financing; (xiii) the effect of patients suffering adverse experiences using investigative drugs under the Company's Expanded Access Program; (xiv) competition from other companies and technologies within the Company's industry; and (xv) the hiring and employment commencement date of executive managers. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 20-F filed with the SEC on April 10, 2025. All forward-looking statements included in this press release are made only as of the date of this press release. The Company assumes no obligation to update any written or oral forward-looking statement, whether as a result of new information, future events or otherwise unless required by law.

Company contact:

Adi Frish
Chief Corporate and Business Development Officer
RedHill Biopharma
+972-54-6543-112
adi@redhillbio.com

Category: Corporate

[1] Talicia^® (omeprazole magnesium, amoxicillin and rifabutin) is indicated for the treatment of H. pylori infection in adults. For full prescribing information, see: https://www.talicia.com/.

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SOURCE RedHill Biopharma

FAQ

What did RedHill (RDHL) announce on October 22, 2025 regarding Nasdaq listing?

RedHill announced it received a Nasdaq Staff Determination of non-compliance and will request a hearing before the Nasdaq Listing Qualifications Panel.

Does RedHill (RDHL) now meet Nasdaq's $2.5 million minimum equity requirement?

The company said after its October 20, 2025 transaction with Cumberland it believes its stockholders' equity exceeds the $2.5 million minimum.

Will RedHill (RDHL) be suspended or delisted immediately after the determination?

No; submission of a hearing request stays any delisting or suspension while the Panel considers the case.

What timeline can investors expect for the Nasdaq Panel decision for RDHL?

The Panel may rule that the company regained compliance or grant up to a 180-day extension to regain compliance.

What happens if the Nasdaq Panel denies RedHill's (RDHL) appeal?

If the Panel does not grant an extension or rule in RedHill's favor, delisting or suspension actions could resume per Nasdaq procedures.

When did Nasdaq first notify RedHill (RDHL) of non-compliance before the October 2025 determination?

Nasdaq first notified the company of non-compliance on April 17, 2025, and granted an extension until October 13, 2025 on August 8, 2025.