I do agree that is way too much dilution, however they are not increasing outstanding shares to 250million but authorized to sell up to 250 million worth of stock on the open market. What will hopefully be around 10-15 million ish shares over time if positive results from COVID pill increase stock price. At most this would dilute us around 20 million shares.
I hope their thoughts are "let's have a huge offering available to us for when we increase greatly in stock price from successful trials so we can sell shares at $50-75 per stock and fund all future trials" but who knows the price point they plan on selling these at. The one good thing is so much of the boards compensation is in the form of stock so they need the stock price to rise for them to be able to cash in long term also.
Indeed like quite a few Israeli (but not only) companies who start with 1 indication wishing to avoid being a one trick pony (which makes sense by itself) prepare themselves to spread out. ORMP started doing so with the Covid JV, and probably wishes to search for other business opportunity/ies in the would be case of insulin failure. Clearly the company does not need this amount of funds for the present trails ongoing. For this reason my estimate is that the sp will bounce back soon enough, and keep on climbing.