JERUSALEM, December 29, 2015 /PRNewswire/ --
Oramed Pharmaceuticals Inc. (NASDAQ: ORMP) (http://www.oramed.com), a developer of oral drug delivery systems, today announced the closing of its previously-announced license and investment deal with Hefei Tianhui Incubation of Technologies Co. Ltd. ("HTIT"). Oramed has sold 1,155,367 restricted shares of Common Stock at a price of $10.39 per Share, for an aggregate amount of $12 million. Oramed has additionally received approval from the Office of the Chief Scientist of the Israeli Ministry of Economy ("OCS") for the out-licensing agreement with HTIT. Following receipt of the OCS's approval, the out-licensing deal for ORMD-0801, a novel oral insulin capsule, has now closed. Under the terms of the agreement, Oramed has granted HTIT exclusive rights for commercialization of ORMD-0801 in Greater China. The license includes multiple milestone payments aggregating $38 million and up to a 10% royalty, based on net sales of the product in China.
"We are excited to have HTIT as a strategic partner as we enter into the huge and highly lucrative diabetes market in China," stated Oramed's CEO Nadav Kidron. "We regard the closing of these transactions as a huge achievement and we now look forward towards our continued collaboration with the creative and experienced team at HTIT."
About Oramed Pharmaceuticals
Oramed Pharmaceuticals is a technology pioneer in the field of oral delivery solutions for drugs currently delivered via injection. Established in 2006, Oramed's Protein Oral Delivery (PODTM) technology is based on over 30 years of research by top scientists at Jerusalem's Hadassah Medical Center. Oramed is seeking to revolutionize the treatment of diabetes through its proprietary flagship product, an orally ingestible insulin capsule (ORMD-0801). Having completed multiple Phase IIa clinical trials, the company has started its Phase IIb on type 2 diabetes under an Investigational New Drug application with the U.S. Food and Drug Administration. In addition the company is developing an oral GLP-1 analog capsule (ORMD-0901).
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Forward-looking statements: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. For example, we are using forward-looking statements when we discuss our clinical trials and revolutionizing the treatment of diabetes with our products, as well as when we discuss future milestone payments and possible royalties under the license agreement with HTIT. These forward-looking statements are based on the current expectations of the management of Oramed only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including that we and HTIT may not succeed in the commercialization of the products, and, even if the products are commercialized, they may not be sold in the applicable territory for various reasons and therefore we may not receive any royalties on such products. In addition, we face risks and uncertainties related to the progress, timing, cost, and results of clinical trials and product development programs; difficulties or delays in obtaining regulatory approval or patent protection for our product candidates; competition from other pharmaceutical or biotechnology companies; and our ability to obtain additional funding required to conduct our research, development and commercialization activities. In addition, the following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; delays or obstacles in launching our clinical trials; changes in legislation; inability to timely develop and introduce new technologies, products and applications; lack of validation of our technology as we progress further and lack of acceptance of our methods by the scientific community; inability to retain or attract key employees whose knowledge is essential to the development of our products; unforeseen scientific difficulties that may develop with our process; greater cost of final product than anticipated; loss of market share and pressure on pricing resulting from competition; laboratory results that do not translate to equally good results in real settings; our patents may not be sufficient; and finally that products may harm recipients, all of which could cause the actual results or performance of Oramed to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, Oramed undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risks and uncertainties affecting Oramed, reference is made to Oramed's reports filed from time to time with the Securities and Exchange Commission.
Oramed Pharmaceuticals Ariella Vaystooch Office: +972-2-566-0001 ext. 2 US: +1-718-831-2512 ext. 2 Email: email@example.com
SOURCE Oramed Pharmaceuticals Inc.