Jun. 21, 2016
On June 21, 2016 Oramed Pharmaceuticals Inc., an Israeli developer of oral drug delivery systems, announced that Hefei Tianhui Incubator of Technologies Co. Ltd. (HTIT) has transferred a $6.5 million milestone payment in connection with the license and investment agreement between Oramed and HTIT. The payment follows Oramed’s positive top-line results from its Phase IIb U.S. FDA trial designed to evaluate the safety and efficacy of Oramed’s oral insulin capsule ORMD-0801 in patients with type 2 diabetes. Per the terms of the agreement signed in December 2015, Oramed granted HTIT exclusive rights for commercialization of ORMD-0801 in Greater China. The up to $50 million license deal includes multiple milestone payments aggregating to $38 million, with a $3 million upfront payment received by Oramed upon execution of the agreement, plus a $12 million investment made by HTIT in Oramed at $10.39 per share in December 2015. Oramed will receive a 10% royalty on net sales of ORMD-0801 and related commercialized products in Greater China.