Equity Research is published in the framework of the Tel Aviv Stock Exchange (TASE) Analysis Program
TEL AVIV, Israel, Aug. 7, 2018 /PRNewswire/ -- The TASE analysis project was launched in 2016 in order to raise investors' awareness to TASE listed technology and life-science companies and the markets in which these companies operate, thus creating appropriate pricing and increasing the exposure of investors from Israel and abroad. Its goal is to encourage investments in these companies by improving understanding of these industries and companies in the market.
In order to maintain professional, independent and unbiased analysis, the companies signed an agreement with the TASE to receive the analysis services for an obligatory period of two years. The companies cannot withdraw from the project during this period. The analysis is funded by the companies surveyed with funding from the Chief Scientist and the TASE.
Summary of Highlights
A strong financial position with sufficient capital to fund scheduled clinical trials and associated expenses for the next 24 months.
- As of 31 May 2018, Oramed had capital resources of approx. $34.4M, which in conjunction with recent capital raised is enough to support planned clinical and regulatory activity till mid-2020.
- On 6 July 2018, Oramed announced the successful sale of 2,892,000 shares of common stock, along with warrants to purchase up to 2,892,000 shares from six-months after their issuance till three-and-a-half years thereafter. Each share of common stock and warrant were bundled together as 'units' with each unit being sold for $6.25. Net of fees Oramed has raised $16.5M.
- We estimate Oramed's cash and cash equivalents balance as of mid-July 2018 at $49M.
Oramed released its report for the quarterly period ending 31 May 2018 on 13 July, 2018 detailing the following:
Over the past three months, and as we forecasted, Oramed has met an important milestone:
- In June 2018, Oramed initiated a glucose clamp study which will quantify insulin absorption in type 1 diabetic patients treated with ORMD-0801.
Revenues from licensing deals with no cost of revenues have partially offset R&D expenses.
- Gross profit for the quarter ending May 31, 2018 totaled $703,000 an increase from the corresponding quarter in 2017.
- Research and development expenses for the quarter ending May 31, 2018 increased by approx. 80% to $4,194,000 from $2,267,000 for the corresponding quarter in 2017.
- Net loss for the quarter ending May 31, 2018 increased to $4,354,000 from $1,965,000 for the corresponding period in 2017.
We maintain our valuation as per our quarterly report of 26 April 2018. Oramed's estimated equity value remains at $200.7M (NIS 708.3M) corresponding to a target price ranging between NIS 49.8 and NIS 56.6; a mean of NIS 53.2.
About the company - Oramed Pharmaceuticals Inc. (hereinafter 'Oramed') 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.
Read the full report here.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion