Oramed Pharmaceuticals Unveils Shareholder Insights on Oral Insulin and Growth Strategy

Oramed Pharmaceuticals Inc. has recently issued a letter to shareholders that highlights significant advancements in its oral insulin program, along with the company's strategic initiatives aimed at long-term growth. The letter, authored by the company's President and CEO, Nadav Kidron, outlines Oramed's commitment to creating sustainable shareholder value while navigating challenges in the biotech landscape.

Advancements in Oral Insulin Program

A key focus of Oramed's current efforts is its oral insulin program. After conducting an extensive analysis of Phase 2 and Phase 3 trial data, the company identified high-responder subgroups among participants, such as those with lower body mass indices (BMI) and older individuals. These groups showcased promising results, including a potential reduction of over 1% in HbA1c, which is crucial for bolstering both regulatory and commercial prospects.

In a strategic move, Oramed is set to initiate a new clinical trial in the United States involving 60 patients. This trial intends to rigorously test the oral insulin formulation while generating valuable data for possible future partnerships. The trial design focuses on a smaller, adequately powered population, aiming for a swift validation process, thereby creating a cost-effective route to build further evidence supporting the product's efficacy.

Despite recent challenges, including the termination of a joint venture with Hefei Tianhui Biotech Co. Ltd. due to unmet financial conditions, Oramed is committed to pursuing its oral insulin development independently. This approach grants the company greater control over the program.

Strong Investment Portfolio

Oramed has strategically invested in a diversified portfolio of dynamic biomedical companies, each selected for their potential returns that align with Oramed's competencies. Some of the key investments include:

1. Scilex Holdings: Oramed provided a substantial loan of $99.5 million to Scilex in September 2023, which has already yielded impressive returns. As of now, Oramed has realized $95.5 million from this investment, with expectations of over $60 million in the next year, plus further royalties anticipated in the following nine years.

2. Alpha Tau Medical Ltd: This company specializes in innovative cancer treatment via their cutting-edge alpha radiation therapy. Oramed has invested a total of $37.7 million, significantly increasing its stake as the company shows promising clinical advancements. As of late September 2025, the value of Oramed's investment in Alpha Tau has risen to approximately $64.8 million, reflecting a $27.1 million gain.

3. BioXcel Therapeutics, Inc.: This biotech firm utilizes artificial intelligence for drug development. Oramed's investment of $7 million has generated partial returns of $6.25 million so far, with ongoing plans for future profitable engagements.

4. Pelthos Therapeutics Inc.: A revenue-generating biotech entity focused on drug delivery technologies, Oramed's investment of $1.5 million has already exhibited a remarkable 180% gain, showcasing the robust nature of its investment strategy.

Oramed also retains smaller positions in several earlier-stage biotech investments to ensure continued diversification. In total, the company has allocated around $32.4 million towards real estate and loans backed by real estate collateral.

Commitment to Shareholders

Alongside its investment strategies, Oramed is deeply committed to rewarding its shareholders. Initial discussions regarding a one-time dividend, tied to the now-abandoned joint venture, reflect this priority. While the spin-off might not proceed, Oramed remains focused on maximizing shareholder returns through prudent funding and development strategies.

As the company continues to navigate the challenges of the biopharmaceutical industry, it also reinforces its intention to seek strong partnerships with companies that exhibit significant growth potential. By leveraging its industry connections, regulatory expertise, and business development capabilities, Oramed intends to enhance the growth trajectories of its partner companies, thus unlocking greater market value.

In summary, Oramed Pharmaceuticals is positioning itself at a critical juncture, with its oral insulin program demonstrating renewed optimism and its investment portfolio proving another pillar of strength. As the company embarks on this growth journey, it remains committed to its shareholders and the broader goal of generating long-term value through strategic initiatives. Oramed encourages stakeholders to stay tuned for more detailed updates on its progress in the upcoming quarters.

Conclusion

Under the leadership of CEO Nadav Kidron, Oramed Pharmaceuticals stands poised to capitalize on its innovative healthcare solutions and diversified investments. As it focuses on enhancing its oral insulin program while exploring new growth initiatives, Oramed signals a promising outlook for the future, reaffirming its mission to deliver meaningful value to shareholders and the wider community.