RedHill Biopharma Acquires Phase II Oncology Drug MESUPRON(R) From WILEX AG

RedHill Biopharma Acquires Phase II Oncology Drug MESUPRON(R) From WILEX AG

  *RedHill expands its late clinical-stage gastrointestinal-focused pipeline
    with MESUPRON^®, an oncology drug targeting gastrointestinal and other
    solid tumor cancers licensed from Wilex AG
  *MESUPRON^® completed several Phase I and Phase II clinical studies,
    including a Phase II proof of concept study in locally advanced
    non-metastatic pancreatic cancer, demonstrating safety and tolerability
    and suggesting activity as measured by both tumor response rate and
    overall survival when administered in combination with first-line
    chemotherapeutic agents
  *MESUPRON^®, a small molecule uPA inhibitor administered by oral capsule,
    presents a new non-cytotoxic approach to cancer therapy with several
    potential mechanisms of action to inhibit both tumor metastasis and growth

TEL-AVIV, Israel, June 30, 2014 (GLOBE NEWSWIRE) -- RedHill Biopharma Ltd.
(Nasdaq:RDHL) (TASE:RDHL) ("RedHill"), an Israeli biopharmaceutical company
focused on late clinical-stage drugs for inflammatory and gastrointestinal
diseases, including cancer, and WILEX AG (ISIN DE0006614720) (Frankfurt:WL6)
("WILEX"), a biopharmaceutical company focused on oncology, based in Munich,
Germany, today announced that they have signed an exclusive license agreement
for the oncology drug candidate MESUPRON^®. The MESUPRON^® small molecule
(INN: Upamostat) is a proprietary, first-in-class, urokinase-type plasminogen
activator (uPA) inhibitor administered by oral capsule. WILEX has completed
several clinical studies with MESUPRON^® in different indications, including
two Phase II proof of concept studies for pancreatic cancer and metastatic
breast cancer.

Under the terms of the agreement, RedHill acquired the exclusive development
and commercialization rights to MESUPRON^®, excluding China, Hong Kong, Taiwan
and Macao, for all indications. RedHill will pay WILEX an upfront payment of
USD 1 million and potential tiered royalties on net revenues, ranging from
mid-teens up to 30%. RedHill will be responsible for all development,
regulatory and commercialization of MESUPRON^®.

MESUPRON^® inhibits the uPA system, which has been shown to play a key role in
tumor cell growth, invasion and the metastasis process. High uPA levels are
associated with poor prognosis in various solid tumor cancers, such as
pancreatic, gastric, breast and prostate cancers. MESUPRON^® presents a
promising new non-cytotoxic approach to cancer therapy with several potential
mechanisms of action to inhibit both tumor metastasis and growth. MESUPRON^®
has completed several Phase I studies and two Phase II proof of concept
studies. The first Phase II study in locally advanced non-metastatic
pancreatic cancer and the second study in metastatic breast cancer,
established the drug's safety and tolerability profile. The Phase II studies
with MESUPRON^® in both indications suggested activity as measured by both
tumor response rate and overall survival of patients when administered in
combination with first-line chemotherapeutic agents.

Dror Ben-Asher, RedHill's CEO, said: "The acquisition of MESUPRON^® reflects
our commitment to patients suffering from gastrointestinal and inflammatory
diseases, including related cancers such as pancreatic cancer, gastric cancer
and colorectal cancer. It adds to RedHill's pipeline of six late
clinical-stage drug candidates and fits well with our risk-mitigating business
model. MESUPRON^® is a unique non-cytotoxic approach targeting oncology
indications where there is a very strong demand for better therapeutic
options. Thanks to the development work conducted by WILEX, MESUPRON^® is
supported by extensive pre-clinical and clinical data, and we believe in its
potential to become an important treatment option for cancer patients. Our
experienced development team is enthusiastic to advance this important new
drug. We look forward to collaborating with our new partner WILEX and would
like to thank them for entrusting us with the development and
commercialization of MESUPRON^®."

Dr. Paul Bevan, Head of R&D of WILEX, commented: "We are very delighted about
today's signing of the second license agreement for MESUPRON^® within the last
three months. With RedHill, we have now concluded the final step for the
global out-licensing of our drug candidate MESUPRON^®. RedHill is an
experienced and knowledgeable partner and highly committed to further
progressing MESUPRON^® towards regulatory approval and commercialization."

About MESUPRON^®:

MESUPRON^® is a proprietary, first-in-class urokinase-type plasminogen
activator (uPA) inhibitor administered by oral capsule. The uPA system has
been shown to play a key role in tumor cell growth, invasion and the
metastasis process. High uPA levels are associated with poor prognosis in
various solid tumor cancers, such as pancreatic, gastric, breast and prostate
cancers. MESUPRON^® presents a promising new non-cytotoxic approach to cancer
therapy with several potential mechanisms of action to inhibit both tumor
metastasis and growth. MESUPRON^® has completed several Phase I studies and
two Phase II proof of concept studies. The first Phase II study in locally
advanced non-metastatic pancreatic cancer and the second study in metastatic
breast cancer, established its safety and tolerability profile. The Phase II
studies with MESUPRON^® in both indications suggested activity as measured by
both tumor response rate and overall survival of patients when administered in
combination with first-line chemotherapeutic agents.

About RedHill Biopharma Ltd.:

RedHill Biopharma Ltd. (Nasdaq:RDHL) (TASE:RDHL) is an emerging Israeli
biopharmaceutical company focused primarily on the development and acquisition
of late clinical-stage, proprietary drugs for the treatment of inflammatory
and gastrointestinal diseases, including cancer. RedHill's current pipeline of
proprietary products includes: (i) RHB-104 - an oral combination therapy for
the treatment of Crohn's disease, with an ongoing Phase III study; (ii)
RHB-105 - an oral combination therapy for Helicobacter pylori infection, with
an ongoing Phase III study; (iii) RHB-106 - an encapsulated formulation for
bowel preparation licensed to Salix Pharmaceuticals, Ltd.; (iv) MESUPRON^® - a
Phase II uPA inhibitor, administered by oral capsule, targeting
gastrointestinal and other solid tumor cancers; (v) RHB-102 - a once-daily
oral pill formulation of ondansetron for the prevention of nausea and
vomiting, in advanced development stages for multiple indications, including a
European marketing application for chemotherapy and radiotherapy-induced
nausea and vomiting planned for the third quarter of 2014 and a Phase III
study for an undisclosed indication planned to commence in 2014, (vi) RHB-103
- an oral thin film formulation of rizatriptan for acute migraines with a U.S.
NDA under FDA review and a European marketing application planned for the
third quarter of 2014; and (vii) RHB-101 - a once-daily oral pill formulation
of the cardio drug carvedilol. For more information please visit
www.redhillbio.com

About WILEX:

WILEX AG is a biopharmaceutical company based in Munich, Germany. Focused on
oncology, the Company's portfolio includes diagnostic and therapeutic product
candidates for the specific detection and targeted treatment of various types
of cancer based on antibodies and small molecules. The WILEX subsidiary
Heidelberg Pharma GmbH in Ladenburg, Germany, offers preclinical contract
research services and an antibody drug conjugate (ADC) technology platform.
WILEX AG is listed on the Frankfurt Stock Exchange: ISIN DE0006614720 / WKN
661472 / Symbol WL6. More information is available at www.wilex.com.

This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. 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 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, risks and uncertainties
associated with (i) the initiation, timing, progress and results of the
Company's preclinical studies, clinical trials, and other therapeutic
candidate development efforts, including any independent reports relating
thereto; (ii) the Company's ability to advance its therapeutic candidates into
clinical trials or to successfully complete its preclinical studies or
clinical trials; (iii) the extent and number 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 and approvals; (iv) the clinical development, commercialization, and
market acceptance of the Company's therapeutic candidates; (v) the Company's
ability to establish and maintain corporate collaborations; (vi) the
interpretation of the properties and characteristics of the Company's
therapeutic candidates and of the results obtained with its therapeutic
candidates in preclinical studies or clinical trials; (vii) the implementation
of the Company's business model, strategic plans for its business and
therapeutic candidates; (viii) 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; (ix) parties from whom
the Company licenses its intellectual property defaulting in their obligations
to the Company; (x) estimates of the Company's expenses, future revenues
capital requirements and the Company's needs for additional financing; and
(xi) competitive companies, technologies and the Company's industry. 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 February 25, 2014.
All forward-looking statements included in this Press Release are made only as
of the date of this Press Release. We assume no obligation to update any
written or oral forward-looking statement unless required by law.

CONTACT: Company contact:
         Adi Frish
         Senior VP Business Development & Licensing
         RedHill Biopharma
         +972-54-6543-112
         adi@redhillbio.com
        
         PR contact (U.S.):
         Lauren Glaser
         Vice President
         The Trout Group
         +1-646-378-2972
         lglaser@troutgroup.com
        
         WILEX AG
         Sylvia Wimmer
         Tel.: +49 (0)89-41 31 38-29
         Email: investors[at]wilex.com
         Grillparzerstr. 10, 81675 Munich, Germany
        
         IR/PR support
         MC Services AG
         Katja Arnold (CIRO)
         Tel.: +49-89-210 228-40
         Mobil: +49 160 9360 3022
         E-Mail: katja.arnold[at]mc-services.eu
 
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