After Oramed Pharmaceuticals Inc. (NASDAQ: ORMP) announced a strategic joint venture for the development and commercialization of its oral medication delivery technology, the company’s shares shot up the charts today. At $2.84 as of the most recent trading session, ORMP shares had risen 30.65%.
OraTech Pharmaceuticals’ establishment
A new company called OraTech Pharmaceuticals Inc. was founded in partnership with Hefei Tianhui Biotech Co., Ltd. (HTIT) after Oramed Pharmaceuticals signed final arrangements to construct it.
The joint venture will concentrate on developing Oramed’s exclusive Protein Oral Delivery (POD) technology, including ORMD-0801, its leading oral insulin candidate. This project is in line with ORMP’s objective to transform the treatment of diabetes and increase the potential of oral biologics in the control of chronic illnesses.
Strategic Investment and Equity Distribution
Under the terms of the agreement, Oramed will transfer its POD technology and related pipeline assets to OraTech. Shareholders of ORMP will retain a majority equity interest in the new entity, allowing them to directly benefit from its future growth and commercialization efforts.
To support development and production, Oramed and HTIT will collectively invest $75 million in capital, a portion of which will be allocated to a supply agreement ensuring efficient resource allocation.
Enhancing Oral Medication Administration Methods
To hasten the commercialization of oral insulin and other cutting-edge treatments, OraTech Pharmaceuticals will combine Oramed’s clinical development experience with HTIT’s sophisticated manufacturing capabilities.
OraTech is well-positioned to restart a crucial Phase 3 clinical study for ORMD-0801 in the US thanks to a solid financial base and a highly skilled leadership team. OraTech wants to create a dependable and expandable supply chain by utilizing HTIT’s expertise in capsule production and economical manufacturing techniques.
This strategic collaboration positions Oramed (ORMP) to not only redefine diabetes care but also unlock new possibilities for oral biologic treatments in chronic disease management.