Oramed Pharmaceuticals Enters into Joint Venture Agreement with HTIT Biotech

Oramed Pharmaceuticals Inc. (NASDAQ: ORMP) has announced a significant development in its operations through a recently signed Ancillary Agreement Completion Protocol and Supplemental Agreement with HTIT Biotech. The agreement, signed on February 7, 2025, entails the formation of a new joint venture company known as Oramed NewCo, Inc.

The Supplemental Agreement serves to amend and supplement the JV Agreement previously entered into by Oramed Pharmaceuticals, Oramed Ltd., and HTIT. It outlines various aspects such as business operations, governance provisions, and the formation of a joint venture company, Oramed NewCo. The agreement sets an initial closing deadline for the transactions by April 30, 2025, with a subsequent closing upon the listing of Oramed NewCo’s common stock on the Nasdaq Stock Market.

Additionally, under the terms of the Supply Agreement, Oramed NewCo will provide HTIT with a deposit of $20 million following the Initial Closing. This deposit is in accordance with the terms of the Supply Agreement and marks a significant step in the completion of the transactions outlined in the Supplemental Agreement.

Furthermore, the Agreement includes provisions for the issuance of securities, funding, and expenses related to the joint venture. It details the contributions of each party, with HTIT investing $60 million and Oramed investing $15 million into the newly formed Oramed NewCo. The Agreement also includes commitments for reimbursement of transaction expenses and operational costs related to ongoing clinical trials.

The corporate governance structure of Oramed NewCo is laid out in the Supplemental Agreement, with provisions for the appointment of directors from both Oramed and HTIT. The document outlines the designation of directors and independent members, ensuring a balanced representation in the governance of the joint venture.

In addition, the Registration Rights Agreement, Asset Transfer Agreement, Supply Agreement, License Agreement, and Novation Agreement embody the comprehensive nature of the transaction signed between the parties. These agreements detail the transfer of assets, obligations, and rights from Oramed Pharmaceuticals to Oramed NewCo, setting the stage for enhanced collaboration and streamlined operations.

The Market Response and Global Impact

The announcement of this joint venture agreement is anticipated to have a transformative impact on Oramed Pharmaceuticals and aligns with its strategic vision for expansion and innovation in the oral drug delivery sector. The partnership with HTIT Biotech brings advanced manufacturing capabilities and financial resources that will drive the accelerated development and commercialization of oral insulin and other innovative drug delivery technologies. This significant development sets the stage for Oramed Pharmaceuticals to enhance its market presence and advance its mission of revolutionizing diabetes and chronic disease treatments.

The financial markets are expected to closely monitor the progress and outcomes of this joint venture as the parties move towards the completion of the transactions outlined in the agreements. The collaborative efforts between Oramed Pharmaceuticals and HTIT Biotech signify a shift towards enhanced capabilities and market potential in the field of oral drug delivery.

The future trajectory of Oramed Pharmaceuticals, guided by this joint venture agreement, holds promise for reshaping the landscape of pharmaceutical innovation and addressing critical healthcare needs globally. As Oramed continues to navigate this strategic partnership, stakeholders and investors are likely to observe the unfolding developments with keen interest.

For further details on the intricacies of the agreements and the strategic implications of this joint venture, interested parties can delve into the comprehensive agreements filed with the Securities and Exchange Commission.

Photo by National Cancer Institute on Unsplash

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Oramed Pharmaceuticals’s 8K filing here.

Oramed Pharmaceuticals Company Profile

Oramed Pharmaceuticals Inc engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules for delivery of polypeptides. The company's product portfolio includes ORMD-0801, an oral insulin capsule, which is in phase III clinical trial for the treatment of individuals with diabetes, as well as in phase II clinical trial for the treatment of non-alcoholic steatohepatitis; and ORA-D-013-1 and ORA-D-013-2, which have completed phase II clinical trial for the treatment of type 2 diabetes.