Oramed Pharmaceuticals Inc. (Bulletin Board:ORMP); DAX:OJU), which is developing an insulin tablet for adult diabetics, rose 62% on Wall Street yesterday, to give a market cap of $63 million, after announcing a step toward a listing on the Nasdaq Capital Market. It is correcting downwards in early trading today,
On Friday, Oramed notified the US Securities and Exchange Commission (SEC) that its board of directors had approved 1:12 reverse stock split. Subject to the reverse stock split's approval by Financial Industry Regulatory Authority, the company expects it to take effect on January 22. The announcement apparently attracted investor interest, as the company will now apparently be able to list on Nasdaq. "Globes" first reported Oramed's plans several weeks ago.
Oramed's share price has risen 110% in the past month, boosted by several positive announcements. In mid-December, it raised $5.6 million, which boosted the amount raised by the company to $20 million. It also announced that it filed an application with the US Food and Drug Administration (FDA) to begin a 150-patient multicenter Phase II clinic trial of its insulin tablet. The company believes that it will obtain approval soon. The study will cost $4 million.
Oramed was founded in 2006 by chief scientific officer Dr. Miram Kidron, on the basis of her research at Hadassah Medical Center. Her son, Nadav Kidron is president and CEO. Investors include Australia's Regals Fund and private investor Leonard Sank.
Oramed is developing oral delivery systems of intravenous drugs. Its insulin tablet targets adult diabetics who are not insulin dependent. Studies have found that oral insulin can improve a diabetics condition and delay insulin dependency, even if the dosage and the delivery regime are imprecise. Insulin dependency greatly exacerbates a diabetic's daily routine, and is liable to cause complications of the disease.
Several companies are developing oral insulin, including Denmark's Novo Nordisk A/S (NYSE: NVO; KSX: NOVO), a leader in injectable insulin, which has a center in Israel. However, many companies have had painful failures in developing oral insulin.
Published by Globes [online], Israel business news - www.globes-online.com - on January 15, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013