Oramed Pharmaceuticals Inc (ORMP)

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Oramed to form joint venture with China-based Hefei Tianhui Biotech

Aug. 02, 2023 8:30 AM ETOramed Pharmaceuticals Inc. (ORMP)

By: Dulan Lokuwithana, SA News Editor

Oramed Pharmaceuticals (NASDAQ:ORMP) gained ~5% pre-market Wednesday after announcing a non-binding deal with China-based Hefei Tianhui Biotechnology Co., Ltd. to establish a joint venture focused on the company’s oral drug delivery technology.

The formation of the JV is subject to the completion of a binding agreement, the New York-based drug developer said, adding that both companies will initially hold equal shares in the new entity.

The joint venture will be responsible for the global development, marketing, and commercialization of drugs focused on Oramed's oral insulin and POD technology as well as its other experimental drugs.

The new entity is expected to begin a Phase 3 oral insulin trial in the U.S.

Initially, Oramed (ORMP) and Hefei Tianhui will invest $60M and $10M for the project, respectively, and both companies will have equal representation on the JV’s director board.