Oramed advances oral insulin, plans Phase 3 trial and dividend

NEW YORK - Oramed Pharmaceuticals Inc . (NASDAQ: NASDAQ:ORMP), a clinical-stage pharmaceutical company with a market capitalization of $80.6 million, announced today its strategic developments and financial updates in a letter to shareholders. The company, currently trading near its 52-week low of $1.99, is progressing with its joint venture, OraTech Pharmaceuticals Inc., to advance oral insulin development and is preparing for U.S. Phase 3 trials.

The collaboration with Hefei Tianhui Biotech Co., Ltd. (HTIT) aims to utilize Oramed’s drug delivery technology and HTIT’s manufacturing capabilities to bring oral insulin to the market. OraTech is expected to receive royalties from the sales of the oral insulin capsule in China, with HTIT having already submitted a Marketing Authorization Application to Chinese regulators. According to InvestingPro, Oramed’s financial health score is rated as GOOD, suggesting strong fundamentals to support this strategic initiative.

Oramed is also planning to distribute the majority of its holding in OraTech to its shareholders via a dividend, coinciding with OraTech’s anticipated Nasdaq listing later this year. Additionally, Oramed is evaluating the possibility of issuing a cash dividend of approximately $0.25 per share to its shareholders. InvestingPro analysis suggests the stock is currently undervalued, with a P/E ratio of 18.4 and strong liquidity indicated by a current ratio of 27.1.

Financially, Oramed has benefited from its investment in Scilex Holding Company, with a $70 million return from a secured loan agreement and further payments of approximately $53 million expected over the next two years. Oramed also receives royalty streams from Scilex products, including ZTlido, ELYXYB, and GLOPERBA, with $400,000 in royalties due for Q4 2024 sales. InvestingPro data shows the company holds more cash than debt on its balance sheet, positioning it well for future investments and growth opportunities.

The company maintains a strong balance sheet and is actively seeking acquisitions and partnerships to leverage its technology development expertise. Oramed’s CEO, Nadav Kidron, expressed commitment to strategic growth and value creation for shareholders.

This news is based on a press release statement from Oramed Pharmaceuticals Inc. and contains forward-looking statements that involve risks and uncertainties. The company’s actual results may differ materially from those projected in these statements.

In other recent news, Oramed Pharmaceuticals Inc. has reported several significant developments. The company has entered into a global licensing agreement with Scilex Pharmaceuticals, granting Oramed’s subsidiary, RoyaltyVest Ltd., an exclusive license to develop and commercialize lidocaine-based products outside the United States. This agreement includes a 50/50 revenue split with Scilex and requires Oramed to secure regulatory approval in a major market within 18 months. Additionally, Oramed has formed a joint venture, OraTech Pharmaceuticals, with Hefei Tianhui Biotech Co., Ltd., to advance its oral insulin technology, backed by a $75 million investment. Oramed will hold a majority equity interest in OraTech, which plans to reinitiate a Phase 3 clinical trial in the U.S.

In financial matters, Oramed has amended a Senior Secured Promissory Note with Scilex, extending its maturity date to December 31, 2025, and acquiring 3.25 million shares of Scilex common stock. Furthermore, Oramed has deferred a $6.25 million amortization payment from Scilex to January 31, 2025, receiving 5 million Scilex shares as collateral. The agreement also includes a potential further deferral contingent on an additional payment from Scilex. Moreover, Oramed secured a $13.2 million payment from Scilex, marking progress in settling outstanding principal amounts under previous financial agreements. These recent developments indicate Oramed’s strategic efforts in expanding its product portfolio and managing its financial agreements.

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