Oramed closes licensing, investment deal in China
Oramed Pharmaceuticals (NASDAQ:ORMP) has closed a license and investment deal with Hefei Tianhui Incubation of Technologies (HTIT) of China.
Oramed has sold 1,155,367 restricted common shares to HTIT at a price of $10.39 each, or a total of $12-million. Oramed also has received regulatory approval in Israel, and closed, an out-licensing agreement with HTIT for its lead oral insulin capsule, ORMD-0801.
Under the terms of the accord, HTIT has exclusive rights to commercialize ORMD-0801 in Greater China in return for multiple milestone payments totaling $38-million and up to a 10% royalty, based on net sales of the product in China.
“We regard the closing of these transactions as a huge achievement and we now look forward towards our continued collaboration with the creative and experienced team at HTIT,” Oramed CEO, Nadav Kidron, said in a statement.