Rodman starts Oramed at buy

Rodman & Renshaw has launched coverage of Oramed Pharmaceuticals (NASDAQ:ORMD) with a “buy” rating and $24 price target. The stock closed at $5.47 on Wednesday.

“Oramed constitutes a differentiated take on diabetes therapy, focusing on oral delivery of existing therapeutic agents like insulin and exenatide,” writes analyst Raghuram Selvaraju.

He considers Oramed an attractive investment opportunity based on three factors. They include its focus on developing next-generation, orally-bioavailable formulations of drugs with known efficacy in diabetes, its potential for significant product sales generation and attractiveness to potential partners by targeting a substantial market in diabetes and its potential for applying its technology platform to the oral delivery of other peptide drugs.

“The positive pharmacokinetic data and favorable safety profile of Oramed’s lead oral insulin drug candidate, ORMD-0801, lead us to believe that the currently-ongoing Phase 2b trial of this agent should yield positive data in the first half of next year,” he added.