NEW YORK - Oramed Pharmaceuticals Inc . (NASDAQ:ORMP) (TASE:ORMP), a clinical-stage pharmaceutical company, has announced the authorization of a stock repurchase plan by its Board of Directors. The plan allows for the repurchase of up to $20 million of its common stock over the next 12 months. This initiative, known as the Stock Buy Back Program, is set to be executed through open market purchases or privately-negotiated transactions in accordance with Rule 10b-18 under the Securities Exchange Act of 1934.
The company has stated that the repurchase of shares will be at its discretion, influenced by factors such as stock price, general business and market conditions, and other investment opportunities. The program does not compel Oramed to acquire any specific number of shares and is subject to expiration in 12 months. The Board of Directors may also choose to terminate, increase, or decrease the authorization for the Stock Buy Back Program at any time.
Funding for the repurchased shares will come from the company's existing cash reserves. Oramed is primarily known for its innovative Protein Oral Delivery (POD™) technology, which is designed to facilitate the oral administration of drugs typically delivered via injection.
The press release also contained forward-looking statements regarding the company's expectations and potential outcomes related to the repurchase plan. However, these statements are subject to a variety of factors and uncertainties that could cause actual results to differ.
This repurchase plan announcement is based on a press release statement from Oramed Pharmaceuticals Inc. and reflects the company's current strategies regarding its capital allocation and stock market presence.
In other recent news, Oramed Pharmaceuticals Inc. has announced a $20 million stock buyback program, reflecting the company's confidence in its future prospects. The company is also progressing with its strategic initiatives, including the ongoing repayment of a Senior Secured Note from Scilex Holding Company and advancements in its oral insulin program. Oramed has received $40 million so far from Scilex, with a further $20 million installment expected soon.
Simultaneously, Oramed is finalizing a joint venture with Hefei Tianhui Biotech Co., Ltd., focusing on the development and commercialization of products using Oramed's oral drug delivery technology. The venture will be supported by a $70 million investment from Hefei Tianhui Biotech and a $25 million contribution from Oramed in cash and stock.
These recent developments underscore Oramed's strategic steps to enhance shareholder value. However, the company has indicated that the transactions are complex and there is no guarantee of their completion. Despite these complexities, Oramed's CEO, Nadav Kidron, assures shareholders of the company's robust cash position.
InvestingPro Insights
Oramed Pharmaceuticals Inc. has recently made headlines with its decision to authorize a stock repurchase plan, and investors are keenly observing the company's financial health and market position. According to InvestingPro data, Oramed's P/E (Price to Earnings) Ratio stands at -12.82, reflecting challenges in profitability in the last twelve months as of Q1 2024. The company's PEG (Price/Earnings to Growth) Ratio, however, is at a low 0.06, which could suggest that the market may be undervaluing the expected growth of the company's earnings.
The company's Price to Book value is 0.54, indicating that the stock is currently trading at a price lower than the company's book value, which could attract value investors looking for potential bargains in the market. Oramed's revenue experienced a significant decline of -75.06% during the same period, which may raise concerns about the company's current revenue-generating capabilities. Despite this, the Gross Profit Margin remains at 100%, a figure that may indicate effective cost management within its operations.
An InvestingPro Tip suggests that investors should consider the company's forward-looking earnings potential, as Oramed's next earnings date is set for August 9, 2024. Additionally, the InvestingPro Fair Value estimate for Oramed's stock is at 3.24 USD, which can serve as a benchmark for investors assessing the current stock price in relation to its perceived intrinsic value.
For investors seeking more comprehensive analysis and additional insights, InvestingPro offers a suite of advanced metrics and tools. There are more InvestingPro Tips available that can provide deeper understanding of Oramed's financial position and market outlook. Subscribers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to exclusive data that could further inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.