Sinopharm, Hefei license Oramed's diabetes therapy
Oramed Pharmaceuticals Inc. (NASDAQ:ORMP) signed a non-binding letter of intent to grant China National Pharmaceutical Group Corp. (Sinopharm) (Beijing, China) and Hefei Life Science & Technology Park Investments and Development Co. Ltd. (Hefei, China) exclusive Chinese rights to ORMD-0801 to treat Type II diabetes.
Under the proposed deal, Oramed would receive $12 million through the sale of 1.2 million shares to Sinopharm and Hefei at $10.39; the investors would receive a 10% stake. The split of shares between Sinopharm and Hefei wasn't disclosed. Oramed would receive $18 million upon the close of the licensing agreement and be eligible for $20 million after it reports results from an ongoing U.S. Phase IIb trial of ORMD-0801, plus a 10% royalty on sales of the oral capsule formulation of insulin. Oramed said last week it expects to complete the Phase IIb trial in 2Q16. ...