Concordia International Corp., an international specialty pharmaceutical company, has entered into a three-year, co-promotion agreement with RedHill Biopharma Ltd. (RedHill) through which the companies expect to expand sales of Donnatal, Concordia's product used in the treatment of irritable bowel syndrome (IBS).

Under the terms of the agreement, RedHill intends to increase the promotion of Donnatal among US doctors who treat irritable bowel syndrome, with marketing efforts anticipated to begin during the current quarter. Over the three-year period, RedHill intends to promote the product in up to 30 sales territories.

RedHill will incur the sales and marketing costs associated with promotional activities, while Concordia will provide materials and samples. Concordia will keep all revenue up to a predetermined level of sales and only after reaching that predetermined level will revenue be shared between the Company and RedHill.

Concordia also plans to continue to sell Donnatal in US sales territories outside the scope of the RedHill agreement.

"This agreement is a cost-effective approach to promoting Donnatal in a manner consistent with our long-term strategic focus on operational excellence," said Allan Oberman, chief executive officer of Concordia. "RedHill's commercial team is highly motivated and has previous experience in gastroenterology sales. We look forward to partnering with them to market Donnatal to more key prescribers who we believe can help raise the product's profile and potentially allow us to reach more patients in the US."

Dror Ben-Asher, chief executive officer of RedHill, said: "We are pleased to partner with Concordia for the US promotion of Donnatal. With a core US commercial team in place, we plan to initiate promotional activities in the US in the coming months, with a specialty gastrointestinal sales force."

Donnatal is used as adjunctive therapy for irritable bowel syndrome, a condition characterized by abdominal pain, bloating, and diarrhea or constipation, and acute enterocolitis. It may also be useful as adjunctive therapy for duodenal ulcer.

RedHill Biopharma Ltd. is a specialty biopharmaceutical company headquartered in Israel, primarily focused on the development and US commercialization of late clinical-stage, proprietary, orally-administered, small molecule drugs for the treatment of gastrointestinal and inflammatory diseases and cancer.

Concordia is a diverse, international specialty pharmaceutical company focused on generic and legacy pharmaceutical products and orphan drugs.