NEW YORK - Oramed Pharmaceuticals Inc . (NASDAQ: NASDAQ:ORMP) (TASE: ORMP), a clinical-stage pharmaceutical company, has announced a $20 million stock repurchase program, reflecting its confidence in the company's value and prospects.
The buyback announcement comes alongside updates on the company's strategic initiatives, including the ongoing repayment of a Senior Secured Note from Scilex Holding Company and advancements in Oramed's oral insulin program.
As of today, Oramed has received $40 million from Scilex, with a $20 million installment expected in September. This repayment is part of a larger $102 million principal amount due to Oramed, excluding interest and exit fees. The company has been in discussions with the U.S. Food and Drug Administration (FDA) to refine its Phase 3 protocol for oral insulin, targeting specific patient subgroups to enhance the trial's success.
In addition, Oramed is finalizing a joint venture (JV) with Hefei Tianhui Biotech Co., Ltd. (HTIT), focusing on the development and commercialization of products using Oramed's oral drug delivery technology. HTIT has pledged a $70 million investment, while Oramed will contribute $25 million in cash and stock. The capital will support the Phase 3 trial in the U.S. and other key clinical and business activities.
However, the company has indicated that the transactions are complex and there is no guarantee of their completion. Oramed's CEO, Nadav Kidron, assures shareholders of the company's robust cash position and the strategic steps being taken to enhance shareholder value.
Oramed's technology aims to enable oral delivery of drugs that are traditionally administered by injection, potentially providing a significant breakthrough in treatment administration. The company maintains offices in the United States and Israel, and continues to focus on its platform technology in the field of oral drug delivery solutions.
This news is based on a press release statement from Oramed Pharmaceuticals Inc. and reflects the company's current initiatives and accomplishments. It is essential to note that forward-looking statements are not guarantees of future performance and are subject to various risks and uncertainties.
InvestingPro Insights
Oramed Pharmaceuticals Inc. (NASDAQ: ORMP) has showcased its resilience and strategic focus as it navigates through its clinical and financial milestones. The company's recent announcement of a $20 million stock repurchase program not only underscores its confidence in its own value but also aligns with some intriguing financial metrics provided by InvestingPro.
As of the last twelve months leading up to Q1 2024, Oramed's Price to Earnings (P/E) Ratio stands at -12.82, indicating that investors may be expecting future growth despite the company currently not being profitable. The Price to Book (P/B) ratio is at 0.54, suggesting that the stock may be undervalued relative to the company's assets. Additionally, with a Gross Profit Margin of 100%, Oramed demonstrates its potential to capitalize on its revenues fully.
InvestingPro Tips highlight the company's significant EBITDA growth of 61.39% during the same period, which could signal improving operational efficiency. However, the substantial negative Operating Income Margin of -2006.38% raises concerns about the company's current operating costs in relation to its revenue.
For investors seeking a deeper dive into Oramed's financials and future prospects, InvestingPro provides additional tips. Currently, there are more tips available on the platform, which can be accessed with an additional 10% off a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24.
While the company's strategic initiatives, such as the repayment from Scilex and the joint venture with Hefei Tianhui Biotech Co., Ltd., are critical steps forward, investors should consider the comprehensive financial data and expert analysis available through InvestingPro to make informed decisions.
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