Oramed Pharmaceuticals Unveils Key Developments and Future Plans in Shareholder Letter

Insights from Oramed Pharmaceuticals' Latest Shareholder Letter

On March 4, 2025, Oramed Pharmaceuticals, Inc. (NASDAQ ORMP) provided a comprehensive update to its shareholders through a letter from CEO Nadav Kidron. His message not only highlighted the company's key achievements but also set the stage for ambitious future objectives, particularly in the realm of oral insulin development and commercialization.

Oramed is declaring a new chapter in its journey with the establishment of OraTech Pharmaceuticals, Inc., a joint venture that taps into innovative oral drug delivery technology aimed specifically at diabetes management. This partnership combines Oramed’s expertise in drug delivery with the advanced manufacturing capabilities of Hefei Tianhui Biotech Co., Ltd (HTIT), positioning OraTech as a potential disruptor within the pharmaceutical industry. With significant investments earmarked for the project, the joint venture is expected to initiate Phase 3 clinical trials in the U.S. – a crucial step toward market introduction of oral insulin.

Strategic Developments and Milestones

One of the prominent aspects of the letter was the detailed overview of OraTech's operational plans and expected timelines. The upcoming Phase 3 trial is strategically designed to evaluate efficacy within specific patient subpopulations, thus narrowing down on those that might show optimal responses to therapy. Additionally, HTIT has submitted a Marketing Authorization Application for the oral insulin solution in China, further expanding the potential market reach. Royalty earnings from these sales are anticipated to contribute significantly to OraTech’s success.

Moreover, Oramed is prepared to reward its shareholders through strategic financial maneuvers. The company intends to distribute a cash dividend of approximately $0.25 per share, complementing a stock dividend that will grant existing shareholders majority ownership in OraTech upon its public listing. This approach not only seeks to enhance shareholder value but also to mitigate potential tax liabilities associated with the stock distribution.

Financial and Operational Strength

Another highlight of the letter pertains to Oramed's financial partnerships, especially the collaboration with Scilex Holding Company. Oramed's robust investment strategy has secured $70 million from a secured loan agreement and positions them to receive further payments of around $53 million in the near future. Additionally, Oramed holds equity stakes in Scilex, including millions of shares that promise ongoing royalty streams from innovative products targeting massive markets, such as pain management solutions and treatments for migraines and gout.

The CEO underscored Oramed's commitment to maintaining a solid balance sheet, showcasing significant cash management efforts that include a diverse portfolio of fixed assets, equities, and other financial instruments. This disciplined strategy is aligned with the company's vision for long-term growth and value creation.

A Positive Future Outlook

Looking ahead, Oramed remains focused on exploring mergers and strategic partnerships within technology spheres to catalyze its growth trajectory further. Kidron expressed optimism about the opportunities that lie ahead, emphasizing that additional announcements of strategic initiatives will be forthcoming in subsequent quarters.

In conclusion, Oramed Pharmaceuticals is at a pivotal moment. With the strategic launch of OraTech, a clear roadmap towards market introduction for oral insulin, and a robust financial strategy, it is poised to leverage its innovative solutions effectively. Shareholders and potential investors alike will be keeping a close eye on the next developments within this dynamic pharmaceutical landscape.