JERUSALEM, July 7, 2015 /PRNewswire/ —
Oramed Pharmaceuticals Inc. (NASDAQ: ORMP) (https://www.oramed.com), a clinical-stage pharmaceutical company focused on the development of oral drug delivery systems, announced today that it has signed a non-binding Letter of Intent (LoI) for an investment and license agreement in China with Sinopharm Capital Management Co. Ltd. and Hefei Life Science & Technology Park Investments and Development Co., Ltd. (Sinopharm/Hefei) potentially valued at $50,000,000 plus royalty payments. Oramed will receive $500,000 in exchange for exclusively negotiating with Sinopharm/Hefei for 60 days, while the final terms of the agreement are negotiated and finalized.
The transaction which additionally includes 10% royalties on sales, will allow Sinopharm/Hefei to purchase a roughly 10% stake in Oramed Pharmaceuticals and acquire rights for oral insulin in China. The terms are to be broken down as follows: Oramed will sell Sinopharm/Hefei 1,155,367 shares of common stock for approximately $12,000,000. In addition, Oramed’s wholly owned subsidiary, Oramed Ltd, will license to Sinopharm/Hefei the exclusive rights to ORMD-0801, oral insulin capsule in China, for a total amount of $38,000,000, of which $18,000,000 will be paid upon the signing of the license agreement and the remaining $20,000,000 will be paid following the completion, and release of results, of Oramed’s current Phase IIb trial in the United States.
China National Pharmaceutical Group Corporation (Sinopharm), is the largest medical and healthcare group in China which is directly managed by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), with the core businesses of distribution, logistics, retail, scientific research and manufacture of healthcare related products. Sinopharm owns 11 wholly owned or holding subsidiaries, and 6 listed companies. The sales revenue of Sinopharm exceeded $39 billion in 2014. Sinopharm Capital Management Co. Ltd. is a professional asset management company within Sinopharm.
Hefei Life Science & Technology Park Investments and Development Co., Ltd.’s (HLST) business focus includes industrial investment and incubation services; high-tech product R&D; technology transfer and related consulting services. HLST has state of the art insulin production facilities in Hefei, China.
About Oramed Pharmaceuticals
Oramed Pharmaceuticals is a technology pioneer in the field of oral delivery solutions for drugs currently delivered via injection. Established in 2006, Oramed’s Protein Oral Delivery (POD