Oramed gets milestone payment from HTIT
Oramed Pharmaceuticals (NASDAQ:ORMP) has received a $6.5-million milestone payment from Hefei Tianhui Incubator of Technologies (HTIT) under a December 2015 license and investment agreement.
The payment follows Oramed’s positive top-line results from its Phase 2b U.S. trial designed to evaluate the safety and efficacy of its oral insulin capsule ORMD-0801 in patients with Type 2 diabetes.
Last December, Oramed granted HTIT exclusive rights to commercialize ORMD-0801 in Greater China. The up to $50-million license deal includes multiple milestone payments totaling $38-million and a $12-million investment made by HTIT in Oramed at $10.39 a share. Oramed will receive a 10% royalty on net sales of ORMD-0801 and related commercialized products in Greater China.
“The completion of this milestone signifies our deepening partnership with HTIT as we move closer to bringing oral insulin to the vast and growing Chinese diabetes market,” Nadav Kidron, CEO of Oramed, said in a statement.
The positive Phase 2b data has further illustrated the huge potential this technology can have in China,” said HTIT CFO & Oramed board member, Xiaopeng Li. “We are working diligently to lay the groundwork for the successful production and commercialization of ORMD-0801 focused on the Greater China market.”