Oramed enters JV for insulin development and commercialization

Oramed (ORMP) has entered into definitive agreements to spin off its Protein Oral Delivery – POD – technology into a newly formed joint venture, OraTech Pharmaceuticals, with Hefei Tianhui. This transaction is designed to accelerate the development and commercialization of Oramed’s ORMD-0801 oral insulin and other POD-based innovative oral drug delivery technologies. As part of the transaction, Oramed will transfer its proprietary oral insulin and POD technology, along with other pipeline assets, into OraTech. The definitive agreements call for Oramed shareholders to receive a majority of Oramed’s equity interest in the new entity, allowing them to directly participate in its future success. Additionally, under the agreements, Oramed and HTIT will contribute a combined $75M in capital, some of which will be allocated for services rendered via a supply agreement. OraTech is expected to go public on Nasdaq. OraTech will have global marketing rights to Oramed’s POD oral protein delivery technology. HTIT is to invest $60M and Oramed $15M. A new Phase 3 trial in the U.S. with a revised protocol is expected to begin this quarter. OraTech will receive royalty payments from sales of oral insulin in China, where a Marketing Authorization Application has been submitted, and commercialization preparations are underway by HTIT.