What's Happening?
Oramed Pharmaceuticals Inc. has announced a strategic transaction with Lifeward Ltd., involving the transfer of Oramed's Protein Oral Drug (POD™) delivery technology to Lifeward. In return, Oramed will
receive a 49.9% beneficial ownership interest in Lifeward, a company known for its medical robotics products. The transaction includes Lifeward issuing $10 million in senior secured convertible notes, with Oramed investing $9 million. This move is part of Oramed's strategy to combine its oral drug delivery innovation with Lifeward's revenue-generating medical robotics business. The transaction is contingent upon certain conditions, including shareholder approval and the achievement of specific milestones.
Why It's Important?
This transaction is significant as it represents a strategic shift for Oramed, allowing it to maintain exposure to its oral drug delivery technology while gaining a stake in a profitable medical robotics company. The deal is expected to enhance Oramed's financial position and provide Lifeward with the resources to achieve profitability. The collaboration could lead to advancements in oral insulin programs and other biomedical innovations, potentially impacting the pharmaceutical and medical technology industries by introducing new treatment methods and improving patient outcomes.
What's Next?
The transaction is subject to customary closing conditions, including Lifeward's shareholder approval. If successful, Oramed will manage an upcoming clinical trial for the POD™ technology. The companies will focus on integrating their platforms and exploring growth opportunities in the medical robotics and oral drug delivery sectors. Stakeholders will be watching for the completion of the transaction and the subsequent impact on both companies' financial performance and market positions.
