Oramed Pharmaceuticals Inc . (NASDAQ: NASDAQ:ORMP) has retained its Neutral rating from H.C. Wainwright.
The firm's commentary highlighted the submission of Phase 3 trial data for ORMD-0801, Oramed's oral insulin candidate, by its Chinese partner, Hefei Tianhui Biotech Co., Ltd. (HTIT), to China's National Medical Products Administration (NMPA).
The review process by the regulatory body is currently in progress.
Oramed has previously wrapped up its analysis of the U.S. Phase 3 trial data, which demonstrated that certain sub-populations with specific parameters such as body mass index (BMI), baseline HbA1c, age, gender, and body weight showed a favorable response to the oral insulin treatment.
Based on these findings, the company plans to launch another U.S. Phase 3 trial later this year, employing a protocol tailored to these positive outcomes.
H.C. Wainwright has not set a price target for Oramed's shares. The firm's stance remains unchanged as it continues to monitor the regulatory developments and potential impact on the company's prospects.
In other recent news, Oramed Pharmaceuticals has released a stock buyback program authorizing the repurchase of up to $20 million of its common stock. The strategic initiative is part of the company's capital allocation management and reflects the board's confidence in the company's value.
The program, which allows Oramed to purchase shares through various methods, does not compel the company to acquire any specific number of shares and may be adjusted or discontinued at the discretion of the company's Board of Directors.
In addition to the buyback program, Oramed has made significant progress on a $101.87 million promissory note. The biotech firm recently received a substantial payment from Scilex Holding Company, marking the third principal payment installment of the note. This latest transaction has raised the total amount paid to $40 million.
InvestingPro Insights
Oramed Pharmaceuticals Inc. (NASDAQ:ORMP) presents a mixed financial landscape according to the latest data from InvestingPro. With a market capitalization of $95.81 million and a notably low price-to-book ratio of 0.54 as of the last twelve months leading into Q2 2024, the company's valuation metrics suggest some level of undervaluation relative to its assets. This could be appealing to value-oriented investors. However, the company's revenue growth has significantly declined by 100% over the same period, highlighting potential concerns regarding its top-line growth.
From a liquidity perspective, an InvestingPro Tip points out that Oramed holds more cash than debt, which is a positive sign for financial health and stability. Additionally, its liquid assets exceed short-term obligations, further underscoring the company's solid position to meet its immediate financial liabilities.
Investors should note, though, that analysts following Oramed do not expect the company to be profitable this year, and net income is anticipated to drop. The stock's price movements have been quite volatile, which could be a consideration for risk-averse investors. For those seeking more detailed analysis, there are additional InvestingPro Tips available that could provide deeper insights into Oramed's financials and projections.
As the company navigates the regulatory process for its oral insulin candidate, these financial metrics and InvestingPro Tips can offer investors a more comprehensive view of Oramed's potential risks and opportunities. For further tips and a full range of metrics, interested readers can explore InvestingPro's platform.
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