Frost & Sullivan Publishes Q1 2019 Update on Oramed Pharmaceuticals Inc.
Oramed Pharmaceuticals Inc. is engaged in transforming injectable drugs into oral ones; initiated ORMD-0901 PK study; received additional milestone payment of $3 million in January 2019; catalyst rich 2019 ahead; we maintain our target price of NIS 53.2.
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Summary of Highlights
- As of November 30, 2018 the company has cash, cash equivalents, short-term and long-term deposits, and marketable securities of $42.8M, enough to promote its strategic plan into 2019.
- Oramed's persistent and relatively successful focus on oral delivery for the diabetes drug market is a commercially promising strategy with the potential of clinical expansion into other segments in the future. By 2025, the diabetes market size is projected to be about $170 billion with a CAGR of 12.7% (2020 to 2025). Oral delivery is projected to comprise about one third of the market.
- Q1 main updates:
Through November 30, 2018, Oramed received aggregate milestone payments from its license agreement with HTIT totaling $17.5 million. An additional milestone payment of $3 million was received in January 2019, amounting to a total of $33 million received to date from HTIT for both the licensing agreement and the investment in Oramed shares. - ORMD-0901: In September 2018, the FDA cleared Oramed's IND application for human trials of ORMD-0901. In the first quarter of calendar year 2019, the company initiated a Phase I pharmacokinetic trial which will evaluate the safety and pharmacokinetics of ORMD-0901 compared to placebo. This study is being conducted according to the IND and will be followed by a Phase II trial on type 2 diabetic patients which will be conducted in the United States under an IND.
- Financially, Oramed is stable with strong ability to promote its clinical and regulatory plans. From a clinical perspective, as planned, Oramed initiated the ORMD-0901 Phase I pharmacokinetic trial. We look for Phase II initiation in Q4 2019.
- As company activities are proceeding as planned, we maintain our valuation of Oramed's equity at $244.7M / NIS 920M; our target price estimation remains in a range between NIS 49.8 and NIS 56.6, a mean of NIS 53.2
For the full list of upcoming catalysts and more valuable insights on Oramed
Read the full report here.
About the company - Oramed Pharmaceuticals Inc. is a biomedical company engaged in pharmaceutical research and development of protein and peptide molecules, that are currently only available by injection. The company's initial pipeline targets the diabetes care market. The company advances two independent clinical programs that target the diabetes market: ORMD-0801, an oral insulin product, which aims to disrupt the treatment paradigm for type 2 diabetes, and decrease the number of insulin injections needed for type 1 diabetes; and ORMD-0901- an oral GLP-1 receptor agonist, which increases physiological insulin secretion.
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Corporate Communications - Frost & Sullivan, Europe
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SOURCE Frost & Sullivan
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