Oramed Pharmaceuticals Inc., a developer of oral drug delivery systems, announced the closing of its previously-announced license and investment deal with Hefei Tianhui Incubation of Technologies Co. Ltd. (HTIT). Oramed has sold 1,155,367 restricted shares of common stock at a price of $10.39 per share, for an aggregate amount of $12 million.
Oramed has additionally received approval from the Office of the Chief Scientist of the Israeli Ministry of Economy (OCS) for the out-licensing agreement with HTIT. Following receipt of the OCS’s approval, the out-licensing deal for ORMD-0801, a novel oral insulin capsule, has now closed. Under the terms of the agreement, Oramed has granted HTIT exclusive rights for commercialisation of ORMD-0801 in Greater China. The license includes multiple milestone payments aggregating $38 million and up to a 10 per cent royalty, based on net sales of the product in China.
“We are excited to have HTIT as a strategic partner as we enter into the huge and highly lucrative diabetes market in China,” stated Oramed’s CEO Nadav Kidron. “We regard the closing of these transactions as a huge achievement and we now look forward towards our continued collaboration with the creative and experienced team at HTIT.”