Oramed Pharmaceuticals Inc (ORMP)

[Billy987]

Aegis Capital Corp Analyst Report:

Following significant progress across Oramed's numerous clinical stage programs, especially ORMD-0801, oral insulin for indications including type 2 diabetes (T2DM) and nonalcoholic steatohepatitis (NASH), and with the Covid-19 vaccine program at subsidiary Oravax Medical, along with making a key commercially-focused hire, we're highlighting the company's progress and reconsidering the upside potential, which we feel is considerable. Shares of ORMP have fared well so far in 2021, +491% YTD, significantly outperforming the biotech industry overall, with, for instance, the S&P Biotech ETF (XBI; NR) down 8% YTD.

We rate shares of ORMP a BUY and raise our price target to $35 (from $20). Our updated price target is predicated on a discounted cash flow valuation. Among other adjustments, we now treat Oravax Medical as tangible value in the model. At 5/31, cash and equivalents were $57mm, while deposits and marketable securities in the aggregate were another ~$20mm.