Oramed Pharmaceuticals Inc. (ORMP): History, Ownership, Mission, How It Works & Makes Money

How does a biopharmaceutical company focused on oral drug delivery, like Oramed Pharmaceuticals Inc., pivot to deliver a nine-month pre-tax net income of $65.0 million in 2025, a massive reversal from the prior year's loss? This platform technology pioneer, known for its Protein Oral Delivery (POD™) system aimed at transforming injectable drugs like insulin into patient-friendly capsules, has seen its total assets surge 42% to $220.5 million, giving it serious financial optionality. But is this success a sign of a breakthrough in its core mission-like its oral insulin candidate, ORMD-0801-or is it a strategic shift driven by investment returns, and what does that mean for your investment thesis?

Oramed Pharmaceuticals Inc. (ORMP) History

Oramed Pharmaceuticals Inc. is a story of persistence, pivoting, and platform technology. The company's core mission has always been to transform injectable drugs into simple, orally-administered capsules, but its path has included both a major clinical setback and a recent, sharp financial turnaround driven by strategic investments.

Given Company's Founding Timeline

Year established

2006

Original location

Jerusalem, Israel

Founding team members

The company was co-founded by a mother-son duo: Miriam Kidron, Ph.D., a scientist at the Hadassah University Hospital in Jerusalem, and her son, Nadav Kidron, Esq., who serves as the Chief Executive Officer.

Initial capital/funding

The initial seed capital for Oramed Pharmaceuticals Inc. is not publicly disclosed, but the underlying Protein Oral Delivery (POD™) technology is rooted in over 30 years of research conducted by top scientists at Jerusalem's Hadassah Medical Center. The first recorded funding round occurred five years after the company's founding.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's history is defintely defined by two major, contrasting inflection points: the clinical failure of its flagship product and a subsequent, aggressive strategic shift into financial and joint venture management.

The January 2023 Phase 3 failure for the oral insulin capsule (ORMD-0801) was a severe blow, forcing the company to re-evaluate its entire strategy. This moment was the catalyst for a pivot from being solely a clinical-stage biotech to a more diversified entity focused on platform commercialization and strategic investing.

The most recent, transformative moment is the February 2025 creation of OraTech Pharmaceuticals Inc.. This joint venture effectively separated the core technology from the parent company's balance sheet, injecting significant capital and expertise for global commercialization. Here's the quick math on the new entity:

• HTIT committed a $60 million investment.
• Oramed Pharmaceuticals Inc. committed a $15 million investment.
• Total initial capital for OraTech: $75 million.

This strategic move, plus the successful completion of a $100 million cash repayment from Scilex Holding Company and a $36.9 million investment in Alpha Tau Medical Ltd. in April 2025, dramatically altered the company's financial profile. For the nine months ended September 30, 2025, Oramed reported a pre-tax net income of $65.0 million, a major turnaround from a net loss of $6.1 million in the prior year period. This focus on disciplined investment has driven total assets up 42% to $220.5 million.

To be fair, the company is now a hybrid: a platform technology pioneer with a strong venture capital arm. You can see how this financial health impacts future R&D in Breaking Down Oramed Pharmaceuticals Inc. (ORMP) Financial Health: Key Insights for Investors.

Oramed Pharmaceuticals Inc. (ORMP) Ownership Structure

Oramed Pharmaceuticals Inc. is a publicly traded, clinical-stage biotechnology company, but its ownership structure is heavily weighted toward individual investors, which is a key factor in its governance and strategic flexibility.

The company is controlled by a mix of retail shareholders, institutional funds, and a significant percentage of stock held by its own management team, which gives the co-founders substantial influence over long-term strategy and operations.

Oramed Pharmaceuticals Inc.'s Current Status

Oramed Pharmaceuticals Inc. is a public entity, trading its Common Stock on both the Nasdaq Stock Market (Nasdaq: ORMP) and the Tel Aviv Stock Exchange (TASE: ORMP). This dual listing provides access to US and international capital markets.

To protect against hostile takeovers, the Board of Directors adopted a shareholder rights plan (often called a poison pill) on November 17, 2025, which is triggered if any person or group acquires beneficial ownership of 15% or more of the common stock. This move signals a clear intent to maintain the current governance and strategic direction.

The company is in a financially stronger position as of the end of the third fiscal quarter of 2025, reporting a net income (pre-tax) of $65.0 million for the nine months ended September 30, 2025, a significant turnaround from the prior year's net loss. Total assets also grew by 42% year-over-year to $220.5 million in the same period. That's a solid balance sheet for a clinical-stage biotech.

Oramed Pharmaceuticals Inc.'s Ownership Breakdown

As a publicly traded company, Oramed's ownership is distributed across three main categories. The high percentage of retail ownership is notable for a biotech firm, meaning the stock can be more volatile than those dominated by institutional money.

Here's the quick math: Insiders and Institutional holders together account for about 30.89% of the company, leaving the vast majority of shares in the hands of the public. This ownership structure makes the retail investor base a defintely important constituency for the company's Mission Statement, Vision, & Core Values of Oramed Pharmaceuticals Inc. (ORMP).

Oramed Pharmaceuticals Inc.'s Leadership

The company is steered by a seasoned management team with an average tenure of 12.9 years, providing consistent leadership in a high-risk industry like biotechnology. This stability is a significant asset when navigating complex clinical trials and regulatory pathways.

• Nadav Kidron, Esq.: Chief Executive Officer, President, and Chairman. He co-founded the company in 2006 and his total yearly compensation for the 2025 fiscal year was approximately $2.10 million. He directly owns about 4.96% of the company's shares.
• Miriam Kidron, PhD.: Chief Scientific Officer and Director. As a co-founder and pharmacologist, her expertise guides the Protein Oral Delivery (POD™) technology platform. Her 2025 compensation was around $1.53 million.
• Joshua Hexter: Chief Operating & Business Officer. He focuses on the company's operations and strategic partnerships, earning approximately $1.03 million in 2025 compensation.
• Avraham Gabay: Chief Financial Officer, Treasurer & Secretary. He manages the company's financials, including its strategic investment portfolio, with a 2025 compensation of about $753.15k.

Oramed Pharmaceuticals Inc. (ORMP) Mission and Values

Oramed Pharmaceuticals Inc. is fundamentally driven by a core purpose to revolutionize drug delivery, aiming to replace painful injections with convenient oral capsules. This mission is backed by a strategic focus on innovation and creating significant long-term shareholder value, evidenced by their strong financial position in 2025.

Oramed Pharmaceuticals Inc.'s Core Purpose

You're investing in a biotech company, so you need to know what they stand for beyond the clinical trial results. Oramed's cultural DNA is built on pioneering a platform technology-the Protein Oral Delivery (POD™) technology-to dramatically improve patient quality of life. They are a platform technology pioneer in the field of oral delivery solutions for drugs currently delivered via injection.

This focus on patient-centric innovation is why they've been able to advance programs like their oral insulin capsule, which has the potential to better the lives of millions of people around the world.

Official Mission Statement

While Oramed Pharmaceuticals Inc. does not publish a single, formal mission statement in the traditional sense, their stated purpose and actions clearly define their operational mandate. It's all about transforming injectable treatments into simple, oral therapies.

• Pioneer oral delivery solutions for drugs currently administered via injection.
• Develop a proprietary technology (POD™) designed to protect drug integrity and increase absorption.
• Advance the ORMD-0801 oral insulin capsule to allow Type 2 diabetes patients to begin insulin therapy earlier, without fear of needles.

Vision Statement

The company's vision is expansive, looking to redefine treatment paradigms for chronic diseases, not just diabetes. They see a future where biologics-large protein molecules that usually require a shot-can be taken as easily as a pill.

• Revolutionize diabetes and chronic disease treatments through innovative oral drug delivery technologies.
• Unlock the broader potential of oral drug delivery for additional therapeutic targets beyond insulin.

Here's the quick math on their strategic flexibility: The company's total assets grew by 42% year-over-year to $220.5 million as of September 30, 2025, giving them significant financial muscle to pursue this vision. You can learn more about the capital structure in Exploring Oramed Pharmaceuticals Inc. (ORMP) Investor Profile: Who's Buying and Why?

Oramed Pharmaceuticals Inc. Slogan/Tagline

Their most prominent tagline captures the hopeful, patient-focused outcome of their work.

• For a Brighter Tomorrow.

Honestly, that simple phrase sums up the benefit of turning a daily injection into a defintely easier-to-take capsule. Their nine-month 2025 net income of $65.0 million shows their disciplined investment strategy is delivering strong results, positioning them to fund that brighter tomorrow.

Oramed Pharmaceuticals Inc. (ORMP) How It Works

Oramed Pharmaceuticals Inc. operates as a clinical-stage biotechnology company focused on revolutionizing drug administration by converting injectable therapies into patient-friendly oral capsules using its proprietary Protein Oral Delivery (POD™) technology. The company primarily creates value through the clinical development of its pipeline candidates and, in the near-term, by strategically managing a diversified investment portfolio that generated a pre-tax net income of $65.0 million for the nine months ended September 30, 2025.

Oramed Pharmaceuticals Inc.'s Product/Service Portfolio

Oramed Pharmaceuticals Inc.'s Operational Framework

Oramed's operational focus is split between advancing its clinical pipeline and managing its capital to fund future development, which is a defintely smart move for a clinical-stage entity.

The core process revolves around its patented Protein Oral Delivery (POD™) technology, which is the engine that drives value creation. This technology uses a capsule designed to shield the therapeutic protein (like insulin or GLP-1) from stomach acids and enzymes, allowing it to be absorbed efficiently in the small intestine for systemic delivery.

Here's the quick math on their recent activity: for the nine months ended September 30, 2025, the company spent $4.4 million on Research and Development (R&D) to refine its oral insulin program, while simultaneously growing its total assets to $220.5 million, largely through investment gains. This shows a clear strategy of using financial strength from investments to fuel R&D, rather than relying solely on traditional capital raises. They are currently launching a new 60-patient trial in the US for ORMD-0801 to validate effectiveness in specific patient subgroups, which helps refine the path to regulatory submission.

You can see how this strategy plays out in their investor profile: Exploring Oramed Pharmaceuticals Inc. (ORMP) Investor Profile: Who's Buying and Why?

Oramed Pharmaceuticals Inc.'s Strategic Advantages

The company's market success hinges on two distinct, yet connected, pillars: a unique technology and a disciplined capital strategy.

• Proprietary Oral Delivery Platform: The POD™ technology is the primary competitive moat, offering a non-invasive, patient-preferred alternative to injections for large-molecule drugs like insulin and GLP-1 analogs, which can significantly increase patient compliance.
• Strategic Investment Portfolio: Unlike most clinical-stage biotechs, Oramed has diversified its capital. This portfolio has been a major source of financial flexibility, driving a pre-tax net income of $65.0 million for the first nine months of fiscal 2025. The complete $100 million cash repayment from Scilex Holding Company and substantial unrealized gains from holdings like Alpha Tau Medical Ltd. are concrete examples of this value creation.
• Targeted Clinical Strategy: Post-trial analysis of ORMD-0801 has allowed Oramed to identify specific high-responder patient subgroups (e.g., lower BMI and older demographics), enabling them to launch smaller, more focused clinical trials to gather robust data efficiently. This is a smart way to de-risk the program.
• Global Partnership Readiness: The company has already established strategic partnerships for commercialization rights in key international markets, including China and Europe, positioning it to accelerate global market access once regulatory approval is achieved.

Oramed Pharmaceuticals Inc. (ORMP) How It Makes Money

Oramed Pharmaceuticals Inc. is a clinical-stage biotechnology company whose core business model is centered on developing and out-licensing its proprietary Protein Oral Delivery (POD™) technology platform. However, for the nine months ended September 30, 2025, the company's financial success was driven almost entirely by strategic capital allocation and investment gains, not by traditional pharmaceutical product revenue.

Oramed Pharmaceuticals Inc.'s Revenue Breakdown

The company's operating revenue is minimal, reflecting its pre-commercial stage. The total reported revenue for the nine months ended September 30, 2025, was only $2.000 million, all of which was derived from a single licensing agreement.

Here's the quick math: the $2.000 million in operating revenue for the nine-month period came from the Hefei Tianhui Biotech Co. Ltd. (HTIT) License Agreement. This revenue stream is now classified as 'Decreasing' because the joint venture with HTIT was terminated in October 2025, eliminating a key commercialization path and its related revenue. The actual financial engine for 2025 was non-operating income, which is a crucial distinction for investors.

Business Economics

The core economic reality for Oramed Pharmaceuticals Inc. in 2025 is a strategic pivot from a pure-play clinical development company to an asset management model. The company's financial health is currently sustained by realized returns and unrealized gains from its diversified investment portfolio, which is funding the continued, albeit smaller, research and development (R&D) efforts for its oral drug delivery platform.

• Non-Operating Income Dominance: The primary financial driver for the nine months ended September 30, 2025, was the combination of a realized cash return and unrealized investment gains. This generated a pre-tax net income of $65.0 million.
• Strategic Investment Monetization: The company completed a full repayment from Scilex Holding Company, which totaled $100 million in principal returned from a prior strategic investment. This realized cash is the most significant single event.
• Valuation Gains: Substantial unrealized fair-value gains from equity holdings, notably in Alpha Tau Medical Ltd., contributed significantly to the reported net income. As of September 30, 2025, the Alpha Tau position was valued at approximately $64.8 million.
• R&D Cost Management: Research and development expenses were intentionally reduced by 10% year-over-year to $4.4 million for the nine-month period, reflecting a focus on a smaller, 60-patient U.S. trial for its oral insulin program, ORMD-0801.

The company is essentially using its investment acumen to fund its biotech pipeline. If you want a deeper dive into the balance sheet strength, check out Breaking Down Oramed Pharmaceuticals Inc. (ORMP) Financial Health: Key Insights for Investors.

Oramed Pharmaceuticals Inc.'s Financial Performance

The financial performance for the nine months ended September 30, 2025, shows a dramatic turnaround, but it's defintely one built on financial engineering rather than commercial product success. The numbers speak volumes about the strategic shift in capital deployment.

• Net Income Turnaround: The company reported a pre-tax net income of $65.0 million for the nine months, a massive swing from a $6.1 million net loss in the same period last year.
• Earnings Per Share (EPS): This financial strength translated to a basic earnings per share of $1.30 and a diluted EPS of $1.26.
• Balance Sheet Strength: Total assets grew by 42% year-over-year to $220.5 million, largely due to the realized and unrealized investment gains.
• Operating Expenses: General and Administrative (G&A) expenses increased to $5.0 million, while R&D expenses decreased to $4.4 million, showing a reallocation of resources away from large-scale clinical trials.

What this estimate hides is the inherent volatility of relying on investment gains; $86 million of the total assets are classified as Level 3 fair value assets, meaning their valuations are based on subjective, non-marketable inputs. This concentration introduces material valuation subjectivity and risk. The company is debt-free with a robust working capital surplus, but sustaining operations requires continuous success in this asset management strategy.

Oramed Pharmaceuticals Inc. (ORMP) Market Position & Future Outlook

Oramed Pharmaceuticals Inc. is currently positioned as a high-potential, clinical-stage platform technology company, shifting its focus from a failed Phase 3 oral insulin trial to a refined clinical strategy and a diversified investment portfolio that generated a pre-tax net income of $65.0 million for the nine months ended September 30, 2025. The company's future outlook hinges on the success of its new, targeted oral insulin trial and its ability to Exploring Oramed Pharmaceuticals Inc. (ORMP) Investor Profile: Who's Buying and Why? to fund its core pipeline.

The core value proposition remains its Protein Oral Delivery (POD™) technology, which aims to convert injectable drugs into oral capsules, a massive potential market. The company has secured significant financial flexibility, with total assets rising 42% year-over-year to $220.5 million as of September 30, 2025, largely driven by strategic investments like its holding in Alpha Tau Medical Ltd. and the full repayment from Scilex Holding Company.

Competitive Landscape

While the broader global insulin market is valued at approximately $29.04 billion in 2025, Oramed Pharmaceuticals Inc. is a pre-commercial entity in the oral insulin space, directly competing with pharmaceutical giants that dominate the injectable market and are developing their own oral or non-injectable therapies. That's the reality of a biotech startup.

Opportunities & Challenges

The company's strategic pivot focuses capital on high-conviction opportunities while managing the inherent risks of a clinical-stage biotech. Here's the quick math: the Oral Insulin Therapies Market is projected to grow at a staggering 35.5% CAGR from 2025 to 2034, so even a small slice of that future market is huge.

Industry Position

Oramed Pharmaceuticals Inc. is a niche player with a potentially disruptive technology, not a broad-market leader. Its standing is based on innovation potential rather than commercial revenue, which was only $2.0 million for the nine months ended September 30, 2025, from a license agreement. The company occupies a unique space, attempting to solve the needle-phobia issue for the vast diabetes population.

• Technology Pioneer: The POD™ technology is a key differentiator, offering a non-invasive route for large-molecule drugs currently requiring injection.
• Financial Resilience: The successful strategic investment strategy, which yielded a net income of $65.0 million, provides a financial cushion often absent in clinical-stage biotechs.
• Refined Focus: The new 60-patient trial is a pragmatic, cost-effective attempt to find a viable path for oral insulin, focusing on specific patient demographics (lower BMI, older age) that showed promise in previous data.
• High-Risk, High-Reward: The company's future value is defintely tied to the successful validation of its platform, not its current market share.

Finance: Monitor the burn rate on the new 60-patient trial against the $4.4 million R&D expense reported for the first nine months of 2025.