Oramed Pharmaceuticals Inc (ORMP)

[TheFinalCD]

Israel's Oramed gets $50 mln China licensing, investment deal

http://finance.yahoo.com/news/israels-oramed-gets-50-mln-125129550.html





Jul 7 2015, 09:04 ET | About: Oramed Pharmaceuticals... (ORMP) | By: Douglas W. House, SA News Editor Contact this editor with comments or a news tip
Thinly traded nano cap Oramed Pharmaceuticals (NASDAQ:ORMP) is up 9% premarket on increased volume in response to its announcement that it has signed a non-binding Letter of Intent for an investment and license agreement in China with Sinopharm Capital Management and Hefei Life Science & Technology Park Investments and Development Co. valued at $50M plus royalties. Oramed will receive $500K in exchange for exclusively negotiating with Sinopharm/Hefei for 60 days to finalize the deal.The transaction will allow Sinopharm/Hefei to acquire a 10% stake in Oramed via the purchase of 1,155,367 shares of common stock for ~$12M and obtain the rights to Oramed's oral insulin in China for $38M, $18M of which will be paid when the license agreement is signed and $20M after the current Phase 2b trial ends in the U.S. Oramed will also receive royalties of 10% on commercial sales.
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