Oramed signs up to $50 million deal for oral insulin capsule in China

Oramed Pharmaceuticals (Nasdaq: ORMP) said it has signed definitive licensing and investment agreements worth up to $50 million with Hefei Tianhui Incubator of Technologies (HTIT) for exclusive rights to market Oramed's oral insulin capsule in China, Hong Kong and Macau.

Oramed's chief executive Nadav Kidron said: "China recently became the country with the largest number of diabetics in the world. Having signed these definitive license and investment agreements, our oral insulin capsule could help serve the growing population of people in China living with diabetes. In addition to the $50 million in milestone payments and investments, we believe the royalties on net sales throughout China will have a very significant impact on Oramed's future revenues and earnings, upon market approval of ORMD-0801 in China."

The clinical-stage pharmaceutical company said the license agreement payments include a $3 million payment due upon execution of the agreement, $8 million in near-term payments subject to Oramed entering into certain agreements and the balance payable upon achievement of certain milestones. In addition, if all conditions are met, HTIT will pay a 10% royalty on net sales of the related commercialized products.