Israel’s Oramed Pharmaceuticals, a developer of oral drug delivery systems, confirmed that it has received $5 million in connection with the definitive agreement with Guangxi Wuzhou Pharmaceutical Co., Ltd., a subsidiary of Guangxi Wuzhou Zhongheng Group Company Ltd for the purchase of 696, 378 restricted shares of common stock.
The stock was acquired for $7.18 per share, the closing price of Oramed’s common stock on Friday, October 31, 2014, in a private placement.
Guangxi Wuzhou Zhongheng Group Company Ltd is an investment holding company publicly traded on the Shanghai Stock Exchange.
“We are pleased to have Wuzhou as a new shareholder, ” noted Nadav Kidron, Chief Executive Officer of Oramed. “China offers a substantial market opportunity for our diabetes focused pipeline and we are delighted to have Wuzhou as a supportive shareholder, as they can help strategically guide our development and commercial entrance into China, ”
Oramed intends to use the net proceeds from this offering for expenses primarily related to the Company’s anticipated U.S. focused clinical development programs for its oral insulin for type 1 and type 2 diabetes indications, for preclinical and clinical studies of its oral GLP-1 analog project, and for general corporate purposes, including general working capital purposes.
Established in 2006, Oramed’s Protein Oral Delivery technology is based on over 30 years of research by top scientists at Jerusalem’s Hadassah Medical Center. Oramed boasts that it is seeking to revolutionize the treatment of diabetes through its proprietary flagship product, an orally ingestible insulin capsule. Having completed separate Phase IIa clinical trials, the company anticipates the initiation of separate Phase IIb clinical trials, in patients with both type 1 and type 2 diabetes under an Investigational New Drug application with the U.S. Food and Drug Administration. In addition the company is developing an oral GLP-1 analog capsule.