Oramed Pharmaceuticals

According to a new report from the Centers for Disease Control and Prevention, in the United States, every one in three people will have Type 2 diabetes by 2050 if the current trend continues. Currently, every one in ten Americans has Type 2 diabetes.

Even though the markets and biotech stocks experienced a broader sell-off, Oramed Pharmaceutical stood out on the market on Monday. The stock price was up more than 25% on Monday and Tuesday, ahead of the company’s trials for its oral insulin drug. Overall, the stock price has been up 53% in the last week.

Summary

  • Oramed Pharmaceuticals (ORMP) has been among the winner of Monday’s sell-off 25% above the price, and 53% above in the last week.
  • The company’s oral solution for diabetics can change the lives of millions of people around the world.
  • Q4 results show an EPS higher than expected in January by $0.42. Revenues remained the same at $674 million.
  • Phase II clinical trials have already progressed and are under investigation by the U.S Food and Drug Administration.
  • If the tests prove to be strong the company will not struggle to find a partner or even a buyer.

 

About Oramed Pharmaceuticals

Oramed Pharmaceuticals (NASDAQ: ORMP) is an innovative platform technology pioneer engaged in the development of oral delivery solutions for drugs that are currently delivered injective. The company was established in 2006 and has offices in New York and Jerusalem.

Oramed has developed a Protein Oral Delivery (POD) technology based on more than 30 years of scientific researches at Jerusalem’s Hadassah Medical Center. The company is focused on changing the way that diabetes is treated through its ORMD-0801 lead candidate. Its flagship product has the ability to transform millions of diabetics Type 1 and 2 around the world with its oral insulin capsule. The pharmaceutical has already completed Phase II clinical trials and is under an Investigational New Drug application with the U.S Food and Drug Administration.

Moreover, Oramed is developing an oral GLP-1 glucagon-like peptide-1 analog capsule, OMRD-0901 which has the potential to be the first orally ingestible GLP-1 analog. In December, the company has announced results from its proof of concept study. Ten patients took part in the study, seven of them received one capsule of leptin and received a placebo. The patients who received leptin showed a decrease in glucose that were similar to or lower to those who received the placebo. The company is planning to start a bigger study with 30 patients.

General Information

What is Leptin?

Leptin is also known as the obesity hormone and is a protein that regulates hunger.

What is a placebo?

Placebo is used in clinical trials to test the effectiveness of treatments and is most often used in drug studies. One group is taking the tested group and the other group is receiving a placebo (the fake drug).

Q4 Earnings report

Earlier this month Oramed reported Q4 earnings where it outperformed GAAP EPS estimates by $0.42 from $0.23. Revenues accumulated at $674 million flat year over year.

oramed pharmaceuticals chart

How can Oramed solve the problem?

The company’s POD technology has been designed to increase patient comfort and compliance while reducing the risk of infection. It gives a simpler way of medicine to pediatrics which can also be cost-effective for patients.

Furthermore, the active protein included in the capsule enhances the absorption across the intestinal wall and protects from detrimental enzymatic activity within the gastrointestinal tract.

This could change diabetics’ life forever.

Should you buy this stock?

Behind every stock, there is a company, and in this case, Oramed Pharmaceutical can bring a new way of lifestyle to people with diabetes. This can bring a whole new era for other injective medicines and pave the way for oral protein solutions. It is obvious that this company is doing something very innovative and those of you who have or know a person with diabetes will admire it a bit more. For diabetes drug-makers, oral insulin has long been a holy grail and if these trails prove to be strong the company will not struggle to find a partner or a buyer.

Disclaimer – I/we have no position in any stock mentioned. I wrote this article myself, and it expresses my personal opinions. I am not receiving any compensation for it, other than FDGT Academy. I do not have or had in the past any business relationship with any company that is mentioned in the above article.

Natalia C. - Junior Analyst at FDGT Academy

Natalia C. - Junior Analyst at FDGT Academy

I am a stock analyst/investor with prior experience and knowledge to BSc Accounting and Finance. After completing my degree and exposure to the accounting firms I decided that the direction I should choose is towards the Investment world. I completed my masters in Investment Management where it gave me solid fundamentals to build my career on. I have examined a lot of different aspects of investment, from REITS, derivatives, currencies, bonds, equity and hedge funds. I never stopped learning about the market which is why I can analyze and write articles for FDGT community always personally opinionated. My passion are green energy and electric vehicles stocks as a whole. I also had my share of analyzing the work form home stocks that are coming to take over in the upcoming years.