By M. Marin
NASDAQ: ORMP
READ THE FULL ORMP RESEARCH REPORT
Gains on investment portfolio + service agreement income contributed to 2Q26 EPS of $2.76
Oramed Pharmaceuticals (NASDAQ: ORMP) leverages its strong balance sheet, with $15.2 million of cash and equivalents and $50.6 million of cash and equivalents plus short-term investments, to allocate capital to investments in the biomedical and other areas. In our view, ORMP has substantial liquidity as it pursues investments and strategic opportunities and indirectly advances the oral drug delivery platform.
Gains on its investment portfolio and financial income, along with payments from service agreements such as ORMP’s agreement with Alpha Tau, contributed to 2Q26 EPS of $2.76. For example, ORMP invested in and formed a strategic collaboration with Alpha Tau Medical (NASDAQ: DRTS), an Israeli oncology therapeutics company developing an innovative alpha-radiation cancer therapy called Alpha DaRT™ (which stands for Diffusing Alpha-emitters Radiation Therapy). Alpha DaRT represents a novel approach to cancer treatment that leverages the use of alpha radiation to treat solid tumors. It is localized alpha particle radiotherapy designed to destroy solid tumors with precision, while minimizing damage to surrounding healthy tissue. Conventional gamma/beta radiation relies on oxygen-dependent, single-strand DNA breaks. Conversely, Alpha DaRT directly damages the cell DNA, inducing irreparable double-strand DNA breaks that are known to be highly destructive to cancerous cells regardless of the cell’s lifecycle stage or level of oxygenation. In this way, Alpha DaRT delivers more precise alpha radiation that minimizes damage to healthy tissue around the tumor. Alpha Tau’s technology platform can be used alone or in conjunction with other cancer treatment modalities.
The companies also entered into a three-year service agreement for Oramed to provide investor and shareholder outreach, business strategic guidance, and capital markets expertise to Alpha Tau per ORMP’s refocused operating strategy, for which Alpha Tau agreed to pay a non-refundable fee of $3.0 million over three years and issue warrants to ORMP for purchase of up to 3.2 million shares. Under its services agreement with Alpha Tau, ORMP is entitled to receive six semi-annual payments aggregating to $3.0 million, which is recorded as Other income.
Believe inclusion in Russell indexes could continue to raise awareness of ORMP prospects
The company’s shares were added to the U.S. small-cap Russell 2000® and broad-market Russell 3000® Index in the June Russell reconstitution. The 2026 Russell 2000 and Russell 3000 reconstitution became effective at the market open on June 29, 2026. Trading volume in ORMP shares rose substantially on several days ahead of reconstitution. We believe inclusion in these Russell indexes could continue to raise awareness of Oramed within the investment community, which we view as a positive. In part, this reflects that many institutional investment managers use Russell indexes as benchmarks. Roughly $12.2 trillion in assets are benchmarked against the Russell US indexes, according to FTSE Russell data.
This inclusion comes as the company’s strategy has transitioned to acquiring interests in a portfolio of entities, as indicated. Several recent investments have yielded strong returns and ORMP is optimistic about its ability to continue to create shareholder value by actively operating the businesses of companies in which it has a majority stake.
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