By M. Marin
NASDAQ: ORMP
READ THE FULL ORMP RESEARCH REPORT
Strategically acquiring controlling interests in portfolio of companies
Oramed Pharmaceuticals (NASDAQ: ORMP) is transitioning its business model to encompass strategically operating medical technology businesses through the acquisition of controlling interests in a portfolio of entities. ORMP’s strategy is to then take responsibility for appointing and overseeing management teams of companies in which it has invested, designing and executing clinical trial programs, and supporting their capital markets activities – including investor relations – and advancing their go-to-market commercialization strategy and long-term business development, among other activities. 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.
Aligned with this focus, ORMP, Corner Capital Management, LLC, and investor Ben Shapiro have launched the Corner Ally Ventures fund focused on investments in Israeli technology companies. The fund’s initial capital closing is expected in 3Q26.
Lifeward transaction
In addition, Oramed recently invested in Lifeward (NASDAQ: LFWD). ORMP CEO Nadav Kidron and ORMP Chief Scientific Officer Miriam Kidron, Ph.D., were appointed to LFWD’s board. Lifeward is a medical device company focused on devices to aid physical rehabilitation and recovery. Its initial products were robotic exoskeletons, including the ReWalk Personal and ReWalk Rehabilitation Exoskeleton for people with spinal cord injury (SCI). Oramed will receive 4% of net sales from the ReWalk franchise, Lifeward’s flagship product line. In addition to ReWalk, Lifeward has expanded its focus organically and through strategic transactions such as acquiring certain technology assets from Skelable Ltd., the developer of a robotic upper body orthotic device with AI capabilities.
Lifeward’s President and CEO, Mark Grant, has extensive experience in pharma, specifically focusing on diabetes, which has been ORMP’s historical focus of clinical development activities. He has more than 25 years of healthcare and medical technology experience, including serving as VP of the Americas for Medtronic’s diabetes business, exceeding $1.5 billion in annual revenue, as well as diabetes-focused roles at Bristol Myers Squibb, according to the company. Arguably, his experience and existing relationships in the space could potentially enable synergies with ORMP’s clinical development efforts and were likely an important factor in advancing this deal, in our view.
Oramed believes Lifeward’s product portfolio is positioned for strong growth and that this transaction can enhance shareholder value by retaining participation in the oral drug delivery program and innovations, and enabling participation in a medical robotics company. According to Lifeward, the transaction and funding are intended to give Lifeward a cash runway to profitability and diversify its portfolio across MedTech and BioTech.
Oramed transferred its proprietary Protein Oral Drug POD™ delivery technology to Lifeward and expects to fund and manage the upcoming anticipated ORMD-0801 oral insulin Phase 2 trial under a clinical trial management agreement. The trial is expected to commence in the near-term. To enhance its financial flexibility, ORMP has filed a registration statement for its LFWD shares.
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