Oramed Pharmaceuticals Inc.

What they do

Oramed is engaged in the research and development of an oral dosage form for delivering therapeutic proteins, particularly insulin, using its Protein Oral Delivery (POD) platform. The company also allocates capital to strategic investments in healthcare and life sciences companies, and has entered into real estate and other investment transactions. As of mid-2026, its operations are increasingly focused on managing a portfolio of investments and joint ventures.

Revenue drivers

• Licensing and collaboration agreements — Historically, Oramed generated revenue from licensing and collaboration agreements, but reported no revenue for the six months ended June 30, 2026.
• Strategic investments — Income from investments, including realized cash returns and unrealized fair-value gains from holdings such as Scilex and Alpha Tau, has become a primary driver of net income.
• Real estate ventures — The company has invested in joint ventures, such as MAR Oramed JV LLC, for self-storage development projects, expecting preferred returns and share of profits.

Recent performance

For the six months ended June 30, 2026, Oramed reported no revenue and an operating loss of $6.4 million, but net income of $116.5 million driven by financial income of $148.6 million and other income of $8.9 million. In the prior-year period, the company had revenues of $2.0 million and net income of $5.6 million. For the nine months ended September 30, 2025, the company reported pre-tax net income of $65.0 million, largely due to the full repayment of a $100 million principal investment from Scilex and unrealized gains. Total assets increased 42% to $220.5 million year-over-year at that time.

Strategy

Oramed has pivoted to a strategic healthcare operating company focused on active ownership and operational leadership. It selectively acquires meaningful positions in companies where it can leverage its expertise in corporate strategy, clinical and regulatory development, commercialization, and capital markets. The company also continues to develop its oral insulin program, though it transferred its POD technology assets and related clinical trial funding to OraTech, which was then acquired by Lifeward in March 2026. Management has stated it will allocate capital to strategic investments and opportunities that complement its long-term objectives.

Risks

• History of losses — The company has a history of operating losses and may not sustain profitability, as evidenced by an operating loss of $6.4 million in the first half of 2026.
• Dependence on investment portfolio — Net income has been largely driven by unrealized gains and strategic investment returns, which are subject to market volatility and may not recur.
• Clinical development uncertainty — Oramed's oral insulin capsule is still in clinical development, and the planned 60-patient US trial may face delays or fail to achieve validation.
• Geopolitical risk — The company is subject to political, economic, and military risks associated with having operations in Israel, including the ongoing multi-front armed conflict.

Outlook

Management plans to initiate a 60-patient, US-based clinical trial for its oral insulin formulation in the second half of 2026, conducted by OraTech. Following the sale of OraTech to Lifeward, research and development expenses are now borne by OraTech, while Oramed retains warrants, pre-funded warrants, and revenue-sharing payments from Lifeward. The company continues to evaluate strategic opportunities and grow its investment portfolio, including additional self-storage projects under the MAR joint venture.