Israeli Oramed to raise $50 million from two Chinese investors

Sinopharm Capital-Hefei Signs Letter of Intent with Oramed for $50 million Investment and Licensing Deal in China

oramed

Oramed Pharmaceuticals Inc. (NASDAQ: ORMP),  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. potentially valued at $50 million plus royalty payments.

Oramed, a clinical-stage pharmaceutical company focused on the development of oral insulin capsule delivery systems,  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 million.

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 million of which $18 million will be paid upon the signing of the license agreement and the remaining $20 million will be paid following the completion, and release of results, of Oramed’s current Phase IIb trial in the United States.

Read more about: , , , , , , , , , ,

Wordpress site Developed by Fixing WordPress Problems