Oramed Pharmaceuticals Inc. (Nasdaq:ORMP); DAX:OJU), which is developing an insulin pill for the treatment of diabetes has raised $13 million from Special Situation Fund and Sabby Capital Healthcare, both funds which specialize in healthcare, sources inform "Globes."
The funds were raised at a share price of $10, a 50% discount on the closing price on Nasdaq last night. The share has risen 115% since the start of the week.
The share price in this private placement is 50% higher than in the company's last round of financing six months ago. In a private placement led by underwriters Ageis and Maxim, the company then raised $4.6 million at a price of $7 per share, the market price at the time of the announcement.
Oramed's shares have risen among other things following a report published several weeks ago by Ageis Investment Bank (which led the private placement) setting a target price of $25 per share, a 60% upside on this morning's price and 121% higher than when it was written.
Ageis explanation for the rise in share price is the successful initial results in treating juvenile diabetes alongside trials for its lead product for adults. The trial found that it was possible to put insulin into the bloodstream of juvenile diabetes patients and the company said that the treatment might also be developed for this group.
Oramed is also currently investigation the possibility of dual listing on the Tel Aviv Stock Exchange (TASE). The company's market cap is $50 million, which means it would be listed on the Biomed 50 Index.
Oramed was founded by CEO Nadav Kidron based on the research of his mother Prof. Miriam Kidron from the Hebrew University of Jerusalem. The company has been listed on Wall Street's OTC since 2007 and upgraded to Nasdaq this year. Oramed is one of several companies in the race to develop an oral form of insulin, which would replace the current standard practice of injections.
Published by Globes [online], Israel business news - www.globes-online.com - on December 25, 2013
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