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NEW YORK - Oramed Pharmaceuticals Inc. (NASDAQ: ORMP) (TASE: ORMP), known for its oral drug delivery technology, has invested $36.9 million in Alpha Tau Medical Ltd. (NASDAQ: DRTS), the developer of Alpha DaRT, a novel alpha-radiation cancer treatment. The investment was made through a direct offering, with Oramed acquiring approximately 14.1 million shares at $2.612 each. According to InvestingPro data, Alpha Tau currently maintains a market capitalization of $185.8 million and holds more cash than debt on its balance sheet, indicating solid financial footing.
This strategic investment is part of a three-year service agreement in which Oramed will offer Alpha Tau investor relations, strategic business guidance, and capital markets expertise. Oramed’s CEO, Nadav Kidron, expressed confidence in the potential of Alpha Tau’s technology and its strategic direction. As part of the alliance, Oramed will also appoint two directors to Alpha Tau’s Board. Analysts share this optimistic outlook, with targets ranging from $5 to $13 per share, suggesting significant upside potential. Get more detailed analysis and insights with InvestingPro, which offers exclusive financial metrics and expert recommendations.
Alpha Tau’s CEO, Uzi Sofer, welcomed the partnership, emphasizing the timely nature of the investment as the company expands its clinical trials in the United States and scales up manufacturing and pre-commercial efforts.
The collaboration aims to combine Oramed’s expertise in delivering injectable drugs orally with Alpha Tau’s precision radiation therapy, potentially revolutionizing therapeutic delivery. The partnership is expected to support Alpha Tau’s commercialization efforts and accelerate the development of its cancer therapies.
Oramed’s Protein Oral Delivery (POD™) technology is designed to protect drug integrity and enhance absorption, while Alpha Tau focuses on the development and potential commercialization of its Alpha DaRT technology for solid tumor treatment.
This news is based on a press release statement and contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected. Alpha Tau maintains a strong liquidity position with a current ratio of 7.4, demonstrating its ability to meet short-term obligations. InvestingPro subscribers can access additional financial health metrics, comprehensive analysis, and real-time updates to make informed investment decisions.
In other recent news, Alpha Tau Medical Ltd. reported a net loss of $31.8 million for the full year of 2024, translating to a loss of $0.45 per share. This result slightly exceeded the estimated loss of $30.9 million by H.C. Wainwright. The firm reiterated a Buy rating on Alpha Tau Medical with a price target of $9.00, citing upcoming clinical and regulatory milestones as potential catalysts. The company plans several significant events in 2025, including treating the first brain cancer patient in Israel and enrolling participants in a pancreatic cancer pilot study in the United States. Additionally, Alpha Tau Medical aims to seek FDA IDE approval for a feasibility study targeting recurrent glioblastoma multiforme patients. Further developments include anticipated responses from Japan’s Pharmaceuticals and Medical Devices Agency regarding pre-market approval for Alpha DaRT in recurrent head and neck cancer. The company is also close to completing the first construction phase of its Hudson, New Hampshire facility, with production set to begin later in the year. These developments are expected to influence the company’s progress and stock performance.
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