Oramed Signs $50 M Deal for Oral Insulin Product in China
Oramed Pharmaceuticals Inc., a clinical-stage pharmaceutical company focused on the development of oral drug delivery systems, has signed definitive licensing and investment agreements valued at up to $50 million with Hefei Tianhui Incubator of Technologies Co., Ltd. or exclusive rights to market Oramed's oral insulin capsule, ORMD-0801, in China, Hong Kong, and Macau. The agreements were signed at the Israel Knesset (Parliament).
The license agreement payments include a $3 million payment due upon execution of the agreement, $8 million in near-term payments subject to Oramed entering into certain agreements and the balance payable upon achievement of certain milestones. In addition, if all conditions are met, HTIT will pay a 10% royalty on net sales of the related commercialized products.
In addition to the contemplated payments under the license agreement, pursuant to the investment agreement, Oramed will issue to HTIT 1,155,469 restricted shares of Oramed's common stock at a price per share of approximately $10.39 and $12 million in total, subject to customary closing conditions.
HTIT, which is partially owned by Sinopharm Group Company Limited, has insulin production facilities in Hefei, China. HTIT has a business focus which includes industrial investment and incubation service, high-tech product R&D, technology transfer, and related consulting services.
Established in 2006, Oramed's Protein Oral Delivery (PODTM) technology is based research by scientists at Jerusalem's Hadassah Medical Center. Oramed’s lead product is an orally ingestible insulin capsule (ORMD-0801). Having completed separate Phase IIa clinical trials, the company anticipates the initiation of separate Phase IIb clinical trials, in patients with both Type 1 and Type 2 diabetes under an investigational new drug application with the US Food and Drug Administration. In addition the company is developing an oral GLP-1 analog capsule (ORMD-0901).
Source: Oramed Pharmaceuticals