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Oramed Pharmaceuticals (ORMP)
NASDAQ:ORMP

Oramed Pharm (ORMP) AI Stock Analysis

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ORMP

Oramed Pharm

(NASDAQ:ORMP)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
$4.00
▲(37.46% Upside)
Overall score reflects strong solvency and recent positive corporate actions, partially offset by weak underlying operations and ongoing cash burn; technicals are constructive but appear overextended, while valuation looks optically low given volatile earnings quality.
Positive Factors
Very low leverage / strong balance sheet
Oramed’s minimal debt relative to a sizable equity and asset base materially lowers solvency risk and preserves optionality. This financial flexibility supports funding clinical trials, strategic investments or milestone pursuits without immediate reliance on dilutive capital markets, aiding multi‑quarter execution.
Strategic pivot via POD transfer and Lifeward stake
Transferring the POD platform while acquiring a significant Lifeward stake shifts Oramed from pure developer to strategic investor/operator. It diversifies exposure into revenue‑generating medical robotics, creates equity upside, and preserves clinical management roles—reducing sole dependence on internal commercialization.
Realized investment gains and liquidity enhancement
Material cash inflows and realized gains from Scilex and warrant monetizations meaningfully bolster cash reserves. These proceeds fund R&D and dividends, lower near‑term financing pressure, and the retained notes, warrants and royalties create potential recurring or convertible upside beyond operating cash flows.
Negative Factors
Persistent negative operating and free cash flow
Sustained operating and free cash flow deficits indicate the company consumes capital to run development programs. Without durable revenue or predictable partner funding, this pattern requires continued asset monetization, partner financing or equity issuance, increasing dilution risk and constraining long‑term program pacing.
Minimal recurring revenue and volatile operating profits
With negligible product revenue and large operating losses, Oramed lacks sustainable internal cash generation. Earnings have been driven by one‑off investment gains rather than operating performance, leaving structural profitability dependent on successful commercialization or durable licensing arrangements.
Execution and milestone dependency in strategic transactions
Key strategic outcomes hinge on approvals and milestone triggers tied to note conversions and warrant exercises. Such conditional structures create execution risk and timing uncertainty; failure or delay could defer expected cash, equity stakes or royalties and leave Oramed exposed while clinical programs continue to need funding.

Oramed Pharm (ORMP) vs. SPDR S&P 500 ETF (SPY)

Oramed Pharm Business Overview & Revenue Model

Company DescriptionOramed Pharmaceuticals Inc. engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules or pills for delivery of polypeptides. Its proprietary flagship product is the ORMD-0801, an orally ingestible insulin capsule, which completed phase II clinical trials for the treatment of individuals with diabetes. It is also developing ORMD-0901, an oral glucagon-like peptide-1 capsule that has completed phase I clinical trials for the treatment of type 2 diabetes; and a weight loss treatment in the form of an oral leptin capsule. The company was formerly known as Integrated Security Technologies, Inc. and changed its name to Oramed Pharmaceuticals Inc. in April 2006. Oramed Pharmaceuticals Inc. was founded in 2002 and is based in New York, New York.
How the Company Makes MoneyOramed Pharmaceuticals generates revenue primarily through the development and potential commercialization of its oral drug delivery technology. The company's revenue model is heavily reliant on successful clinical trials and the subsequent approval and licensing of its products. Oramed partners with pharmaceutical companies to co-develop and license its technologies, receiving milestone payments and royalties from these collaborations. Additionally, the company may engage in research and development service agreements, contributing to its revenue streams. However, as a clinical-stage company, its current earnings are mostly derived from partnerships and investments aimed at advancing its clinical programs.

Oramed Pharm Financial Statement Overview

Summary
Balance sheet strength (very low debt vs. sizable equity) supports solvency, but operating performance is weak with minimal revenue scale, ongoing operating losses, and structurally negative operating/free cash flow despite volatile net income.
Income Statement
22
Negative
TTM (Trailing-Twelve-Months) revenue remains very small ($2.0M) with no growth, and profitability is volatile: gross profit is slightly negative and operating losses remain large (EBIT -$13.0M). Net income is positive in TTM (+$43.9M) after a weak 2024 (-$19.1M) and a one-off positive 2023 (+$5.5M), suggesting earnings quality is inconsistent and not supported by a stable operating profit trend.
Balance Sheet
78
Positive
The balance sheet is a key strength: very low debt in TTM (~$0.86M) against a large equity base (~$203.3M) and total assets (~$220.5M), implying minimal leverage risk. However, returns on equity are negative in TTM and most years (TTM about -16%), reflecting that the company has not consistently converted its asset/equity base into sustainable profitability.
Cash Flow
34
Negative
Cash generation is weak and persistent: TTM operating cash flow is negative (-$11.0M) and free cash flow is also negative (-$11.0M), following multiple years of cash burn (including -$8.4M in 2024 and -$29.2M in 2022). Free cash flow also declined sharply in TTM versus the prior period (large negative growth), indicating spending/cash usage intensified despite the reported net income improvement.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.00M0.001.34M2.70M2.70M2.71M
Gross Profit-79.00K-193.00K1.34M2.70M2.70M2.62M
EBITDA58.42M-14.87M7.32M-36.98M-25.04M-11.31M
Net Income43.85M-19.10M5.53M-37.76M-22.24M-11.51M
Balance Sheet
Total Assets220.49M155.28M220.55M161.64M128.00M44.63M
Cash, Cash Equivalents and Short-Term Investments134.69M141.93M162.05M155.72M94.14M39.90M
Total Debt860.00K372.00K51.62M894.00K533.00K75.00K
Total Liabilities18.16M9.93M57.66M10.49M11.48M11.75M
Stockholders Equity203.28M146.26M163.82M151.81M115.77M32.88M
Cash Flow
Free Cash Flow-11.03M-8.43M-10.55M-29.20M-21.56M-12.52M
Operating Cash Flow-11.01M-8.41M-10.29M-28.70M-21.18M-12.44M
Investing Cash Flow23.22M105.82M-73.04M30.21M-22.26M4.63M
Financing Cash Flow-2.15M-52.04M51.98M11.56M101.39M23.79M

Oramed Pharm Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.91
Price Trends
50DMA
2.94
Positive
100DMA
2.58
Positive
200DMA
2.31
Positive
Market Momentum
MACD
0.15
Positive
RSI
58.86
Neutral
STOCH
32.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORMP, the sentiment is Positive. The current price of 2.91 is below the 20-day moving average (MA) of 3.35, below the 50-day MA of 2.94, and above the 200-day MA of 2.31, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 58.86 is Neutral, neither overbought nor oversold. The STOCH value of 32.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORMP.

Oramed Pharm Risk Analysis

Oramed Pharm disclosed 45 risk factors in its most recent earnings report. Oramed Pharm reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Oramed Pharm Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$135.33M3.4024.38%814.20%
61
Neutral
$91.09M-0.92-118.95%31.98%
56
Neutral
$135.73M21.21-13.82%-42.62%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
45
Neutral
$83.48M-0.98-167.93%-90.18%-17.93%
40
Underperform
$10.02M-247.78%2.26%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ORMP
Oramed Pharm
3.41
1.37
67.07%
WHWK
Whitehawk Therapeutics
2.88
-0.02
-0.69%
QNCX
Quince Therapeutics
0.15
-1.53
-91.32%
ALXO
ALX Oncology Holdings
1.87
0.63
50.81%
SPRB
Spruce Biosciences
83.49
53.65
179.79%

Oramed Pharm Corporate Events

Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Oramed Pharm pivots with Lifeward strategic platform deal
Positive
Jan 14, 2026

On January 12, 2026, Oramed Pharmaceuticals entered into a set of strategic agreements with Lifeward Ltd. under which Oramed will transfer its POD™ oral drug delivery platform, including its investigational oral insulin capsule, to Lifeward in exchange for Lifeward shares, pre-funded warrants, additional share purchase warrants and a 4% royalty on net revenue from Lifeward’s ReWalk personal exoskeleton franchise for up to 10 years or until other specified conditions are met. The structure of the deal, which remains subject to customary closing conditions and shareholder approvals, will make Oramed a significant shareholder with up to 49.9% beneficial ownership of Lifeward and gives it the ability to further increase its stake through senior secured convertible notes and associated warrants totaling up to $20 million in principal, most of which Oramed has agreed to purchase. Oramed will continue to manage the clinical trial program for the oral insulin candidate under a clinical trial management agreement, while Lifeward, a revenue-generating medical robotics company whose FDA-approved ReWalk and AlterG systems produced $26 million in sales over the last four reported quarters, will integrate the POD™ platform into its portfolio. The transaction effectively pivots Oramed from a pure-play oral drug delivery developer into a major strategic and financial stakeholder in a diversified medical robotics and drug-delivery business, while potentially providing Lifeward with both a new growth avenue in diabetes and additional capital aimed at driving the ReWalk and AlterG lines toward profitability.

The most recent analyst rating on (ORMP) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Oramed Pharm stock, see the ORMP Stock Forecast page.

Business Operations and StrategyDividendsFinancial Disclosures
Oramed Pharm Announces Dividend After Scilex Payment Gain
Positive
Jan 7, 2026

On January 7, 2026, Oramed Pharmaceuticals reported receiving an $18 million payment from Scilex Holdings Inc., marking full satisfaction of obligations under their Option Agreement and lifting Oramed’s realized returns on its original $99.5 million Scilex investment to $118 million. The company continues to hold a $27 million note and a $12 million convertible note in Scilex, along with warrants and a nine-year royalty interest, leaving further potential upside from the relationship and underscoring Oramed’s strategy of leveraging investment gains alongside its clinical operations. Reflecting these gains and surplus capital, Oramed’s board approved a cash dividend of $0.25 per share, expected to distribute about $10.5 million to shareholders on January 26, 2026, to investors of record as of January 16, 2026, signaling confidence in the company’s financial position and providing a direct return to equity holders.

The most recent analyst rating on (ORMP) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Oramed Pharm stock, see the ORMP Stock Forecast page.

Executive/Board Changes
Oramed Pharm Announces Long-Tenured Director’s Upcoming Resignation
Neutral
Dec 31, 2025

On December 31, 2025, Oramed Pharmaceuticals Inc. announced that board member Leonard Sank notified the company of his intention to resign from its board of directors, effective January 1, 2026, after serving 18 years with the company. The company stated that Sank’s departure was not due to any disagreement related to operations, policies or practices, signaling an orderly governance transition rather than a sign of internal conflict, though the exit of such a long‑tenured director may still mark a notable change in the board’s composition and institutional knowledge for stakeholders.

The most recent analyst rating on (ORMP) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Oramed Pharm stock, see the ORMP Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Oramed Pharm Completes Warrant Sale, Boosting Liquidity
Positive
Dec 31, 2025

On July 22, 2025, Oramed Pharmaceuticals Inc. entered into an option agreement with Scilex Holding Company granting Scilex the right to repurchase warrants held by Oramed to buy a total of 6,500,000 shares of Scilex common stock at a nominal exercise price, in two tranches, for an agreed aggregate purchase price of $27 million. Scilex repurchased the first tranche of warrants covering 3,130,000 shares on September 30, 2025 for $13 million following a $750,000 option fee, and on December 30, 2025 completed the second and final tranche for the remaining 3,370,000 warrants for $14 million, plus a further $750,000 option fee, resulting in Oramed receiving total cash proceeds of $28.5 million from the transaction, bolstering its liquidity and financial flexibility.

The most recent analyst rating on (ORMP) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Oramed Pharm stock, see the ORMP Stock Forecast page.

Business Operations and StrategyDividends
Oramed Pharm Declares Dividend Amidst Takeover Defense
Neutral
Nov 17, 2025

On November 16, 2025, Oramed Pharmaceuticals’ Board of Directors declared a dividend of one common stock purchase right for each outstanding share of common stock, payable on November 27, 2025. This Rights Agreement is designed to protect shareholders in the event of a hostile takeover by ensuring fair treatment and enhancing the Board’s negotiation capabilities. The Rights become exercisable if a person or group acquires 15% or more of the company’s stock, allowing holders to purchase shares at a favorable rate, while the Rights held by the acquiring party become void. The Rights will expire three years after adoption unless redeemed or exchanged earlier.

Business Operations and StrategyStock BuybackDividends
Oramed Pharm Repurchases Shares, Ends Joint Venture
Positive
Oct 24, 2025

On October 20, 2025, Oramed Pharmaceuticals repurchased and retired 1,155,367 shares from Hefei Tianhui Biotech Co., Ltd. for approximately $2.58 million. The joint venture with HTIT was terminated due to unmet financial conditions, but Oramed will continue its oral insulin program independently. The company has made significant investments in biomedical companies like Alpha Tau Medical, Scilex Holdings, and BioXcel Therapeutics, generating substantial returns and positioning itself for future growth. Oramed plans to reward shareholders with a one-time dividend and is actively pursuing new partnerships to expand its market potential.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 15, 2026