Israel's Oramed Pharmaceuticals secures $13M in private placement- report
Citing sources, a report from Israeli business website Globes said Oramed Pharmaceuticals Inc had raised $13 million from two funds which specialize in healthcare. Proceeds came from the Special Situation Fund and Sabby Capital Healthcare and were priced at $10 each or a 50% discount on the stock's closing price on the Nasdaq on December 24, the report said.
Information from its website showed that Oramed was founded in 2006 in Israel. Its two flagship products are an oral insulin capsule and an oral exenatide capsule. Its unique oral delivery technology is a platform for vaccines and medications that are already available in injection form.
Compared to Oramed's last round of funding six months ago, the share price in this placement is higher by 50%. Back then, the Insulin pill developer was able to raise $4.6 million or a price of $7 per share. The underwriters for that offering were Aegis and Maxim, the report said.
The stock has increased 115% since the beginning of the week, Globes reported. One of the reasons why the price of Oramed's shares had risen is the report from Aegis Investment Bank published a few weeks ago which set $25 per share as the target price for the placement.
The report also said that another reason for the increase in share price is the success of Oramed in the initial results of its juvenile diabetes treatment together with its trials for its lead product for adults. The trial revealed that it was possible to place insulin into the bloodstream of patients suffering from juvenile diabetes. The company also said that it might be possible to develop treatment for this group.
The report said Oramed is also looking into the possibility of undertaking a dual listing on the Tel Aviv Stock Exchange. If it does, it would be listed on the Biomed 50 Index because it has a market cap of $50 million.