Oramed Pharmaceuticals, Inc. (ORMP) Stock Soars on $50 Million License Deal


Shares of Oramed Pharmaceuticals, Inc. (NASDAQ:ORMP) soared today upon news of a $50 million license agreement with China’s Hefei Tianhu (HTIT)i. The Israeli company’s deal provides for exclusive rights allowing Hefei to market their oral insulin drug, ORMD-0801 in Macau, Hong Kong, and China.

The deal includes initial payments of $3 million upon signing of the agreement, and another $8 million in payments coming soon thereafter. Further payments will be made upon completion of set milestones. It also includes an agreement for Hefei to pay 10% royalties of net sales to Oramed.

ORMP stock is up 35.10% or $2.72 after the positive news, hitting $10.47 per share. About 80,647 shares traded hands or 1.67% up from the average. ORMP has risen 7.94% since April 27, 2015 and is uptrending. It has outperformed by 8.83% the S&P500.

Out of 3 analysts covering Oramed Pharmaceuticals (NASDAQ:ORMP), 3 rate it “Buy”, 0 “Sell”, while 0 “Hold”. This means 100% are positive. $24 is the highest target while $15 is the lowest. The $21 average target is 100.57% above today’s ($10.47) stock price. Oramed Pharmaceuticals was the topic in 4 analyst reports since August 14, 2015 according to StockzIntelligence Inc. FBR Capital initiated the stock on November 19 with “Outperform” rating. H.C. Wainwright initiated the shares of ORMP in a report on October 1 with “Buy” rating.

The institutional sentiment decreased to 0.63 in Q2 2015. Its down 0.17, from 0.8 in 2015Q1. The ratio turned negative, as 6 funds sold all Oramed Pharmaceuticals, Inc. shares owned while 2 reduced positions. 3 funds bought stakes while 2 increased positions. They now own 333,703 shares or 38.38% less from 541,534 shares in 2015Q1.

Greylin Investment Mangement Inc holds 0.06% of its portfolio in Oramed Pharmaceuticals, Inc. for 45,100 shares. Sabby Management Llc owns 212,017 shares or 0.04% of their US portfolio. Moreover, Bank Of America Corp De has 0% invested in the company for 100 shares. The Illinois-based Citadel Advisors Llc has invested 0% in the stock. Finemark National Bank & Trust, a Florida-based fund reported 3,473 shares.

Oramed Pharmaceuticals Inc. is engaged in the field of oral delivery solutions for drugs and vaccines presently delivered via injection. The company has a market cap of $121.45 million. Oramed’s flagship product, an orally ingestible insulin capsule in phase II clinical trials, is focused on the treatment of diabetes. It currently has negative earnings. The Firm is developing orally ingestible protein oral delivery (POD) technology for the delivery of drugs presently administered by way of injection.