Oramed Pharmaceuticals Inc Stock Price, News & Analysis

Oramed Pharmaceuticals (NASDAQ: ORMP) has announced key developments expected for completion in 2025, centered around its new joint venture OraTech Pharmaceuticals. The venture focuses on oral insulin development with planned U.S. Phase 3 trials.

Key highlights include:

• Distribution of majority OraTech holdings to Oramed shareholders via dividend, coinciding with OraTech's planned Nasdaq listing
• Planned cash dividend of approximately $0.25 per share
• Marketing Authorization Application submitted by HTIT for oral insulin capsule in China, with OraTech expected to receive royalties
• Ongoing revenue from Scilex partnership, including $400,000 in royalties due for Q4 2024

The company maintains a strong financial position through its Scilex transaction, receiving $70 million from a $99.5 million loan agreement, with additional $53 million expected over two years. Oramed holds 12.25 million Scilex shares, increasing to 18.75 million shares, plus royalty streams from multiple products including ZTlido, ELYXYB, and GLOPERBA.

Oramed Pharmaceuticals (NASDAQ: ORMP) announced a strategic joint venture to create OraTech Pharmaceuticals, focusing on oral drug delivery technology. The new company will receive Oramed's POD™ technology and oral insulin assets, backed by a $75 million combined investment from Oramed ($15M) and Hefei Tianhui Biotech (HTIT) ($60M).

Key aspects of the deal include: Oramed shareholders will receive a majority stake in OraTech, which is expected to list on Nasdaq; HTIT will provide manufacturing capabilities and a supply agreement for oral insulin capsules; and OraTech will hold global marketing rights to the POD™ technology. A new Phase 3 trial in the U.S. with a revised protocol is planned to begin this quarter, while in China, a Marketing Authorization Application has been submitted with commercialization preparations underway by HTIT.

Oramed Pharmaceuticals (ORMP) announced a restructuring of its debt with Scilex Holding Company (SCLX). Key points:

• Oramed agreed to restructure $22.5 million of Scilex's existing Senior Secured Promissory Note
• In exchange, Oramed receives a $25 million convertible note with 5.5% interest, warrants for 3.75 million Scilex shares, and $12.5 million repayment
• Oramed and other investors will acquire rights to an 8% royalty on net sales of certain Scilex products, including ZTlido
• The restructuring extends part of the payment schedule but offers potential upside through warrants and conversion options

CEO Nadav Kidron stated the restructuring enhances the potential value of Oramed's investment in Scilex while aligning with their strategy to maximize shareholder value.

Oramed Pharmaceuticals has issued a Letter to Shareholders, highlighting several key developments. The company announced a $20 million stock repurchase program, reflecting confidence in its value. Oramed is actively engaging with the FDA on a new Phase 3 protocol for its oral insulin program, targeting specific patient subgroups. The company has received $40 million from the $102 million principal of Scilex Holding Company's Senior Secured Note, with the next $20 million installment due in September. Additionally, Oramed is finalizing a joint venture with Hefei Tianhui Biotech Co., (HTIT), which includes significant investments to support clinical and business activities. These initiatives aim to drive shareholder value and advance Oramed's oral drug delivery platforms.

Oramed Pharmaceuticals (Nasdaq: ORMP) has announced a stock buy-back program worth up to $20 million. This plan, approved by the Board of Directors, allows the company to repurchase its common stock over the next 12 months. The buy-back can be executed through open market purchases, privately-negotiated transactions, or other methods, complying with Rule 10b-18 under the Securities Exchange Act of 1934. The decision to buy back shares will depend on various factors including stock price, market conditions, and alternative investments. The program does not obligate Oramed to repurchase shares and can be altered or terminated at any time by the Board. The repurchases will be funded from the company's existing cash reserves.