Oramed Pharmaceuticals has signed definitive agreements to spin off its Protein Oral Delivery (POD) technology into a newly formed joint venture, OraTech Pharmaceuticals Inc. (OraTech), with Hefei Tianhui Biotech Co., Ltd. (HTIT).

This transaction is designed to accelerate the development and commercialization of Oramed's ORMD-0801 oral insulin and other POD™-based innovative oral drug delivery technologies, reinforcing Oramed's vision of revolutionizing diabetes and chronic disease treatments.

As part of the transaction, Oramed will transfer its proprietary oral insulin and POD™ technology, along with other pipeline assets, into OraTech. The definitive agreements call for Oramed shareholders to receive a majority of Oramed's equity interest in the new entity, allowing them to directly participate in its future success.

Additionally, under the agreements, Oramed and HTIT will contribute a combined USD 75 million in capital, some of which will be allocated for services rendered via a supply agreement. This financial backing will provide substantial resources for development, commercialization, and clinical advancement.

"We are excited to launch OraTech, a company that brings together Oramed's technology and clinical development expertise with HTIT's state-of-the-art manufacturing capabilities. OraTech will be singularly focused on bringing oral insulin to market and unlocking the broader potential of oral drug delivery for additional therapeutic targets. With strong capital investment, an experienced leadership team, and world-class manufacturing support from HTIT, the company is uniquely positioned to advance its programs, including the planned reinitiation of a pivotal Phase 3 clinical trial in the United States," said Nadav Kidron, Chief Executive Officer of Oramed.

OraTech will leverage HTIT's expertise in capsule production and cost-efficient manufacturing, ensuring a robust, reliable, and scalable supply chain to support clinical trials and commercialization efforts.

With a clear focus on development and commercialization, strong financial backing, and a pipeline poised for clinical and regulatory advancements, OraTech is potentially set to redefine diabetes care and transform the future of oral biologics and chronic disease management.