Oramed Pharmaceuticals Inc. is a pharmaceutical company engaged in the research and development of innovative pharmaceutical solutions with a technology platform that enables the oral delivery of therapeutic proteins. The company’s lead product candidate is an oral insulin capsule designed to survive gastrointestinal degradation and deliver insulin via the portal vein. In addition to its core R&D activities, the company allocates capital to strategic investments in healthcare and life sciences firms that complement its long term business objectives.

We generate revenue primarily through interest income on loans and debt securities we hold, royalty rights from licensing agreements, fees for services provided to partner companies, and proceeds from the sale of warrants and other securities. For example, we earn interest from promissory notes issued by Scilex Holding Company and Lifeward Ltd., receive a 4% royalty on worldwide net sales of ZTLido and related products under a royalty purchase agreement, and obtain service fees under an agreement with Alpha Tau Medical Ltd. for investor relations support. We also realize cash from the sale of warrants and equity positions in companies such as BioXcel Therapeutics and Nano Dimension Ltd. Additionally, we receive royalty payments from HTIT under an exclusive license agreement for our oral insulin capsule in China, Macau and Hong Kong. Our investment portfolio further contributes to revenue through dividends and capital gains on holdings in various life sciences enterprises.

The company operates through the following segments:

Oramed Pharmaceuticals holds a niche position in the diabetes treatment and biotechnology sectors, competing against large pharmaceutical firms such as Novo Nordisk and Eli Lilly, medical device companies like Medtronic that offer insulin pumps, and emerging oral insulin developers. The global diabetes market is substantial, with the International Diabetes Federation reporting approximately 589 million adults living with diabetes in 2024 and projecting growth to 853 million by 2050, creating a sizable addressable market for novel therapies. Competitive pressure also comes from the widespread adoption of GLP 1 receptor agonists, both injectable and oral formulations, which have become dominant in diabetes and weight management. Our competitive advantage lies in its proprietary oral delivery technology platform, which aims to administer insulin and other proteins without injections, supported by a broad patent portfolio covering multiple jurisdictions. The company’s strategy of coupling its R&D pipeline with strategic investments in complementary healthcare businesses further diversifies its revenue sources and enhances its resilience in a highly competitive industry.

The company’s revenue generating counterparties include Scilex Holding Company, from which it holds interest bearing notes and royalty rights; Lifeward Ltd., to which it has extended secured loans; and Alpha Tau Medical Ltd., which receives investor relations and public relations services from Oramed. In addition, Oramed benefits from royalty streams tied to the commercial success of licensed products such as ZTLido, thereby linking its income to end user demand in the pharmaceutical market. We also receive royalty payments from HTIT under an exclusive license agreement for our oral insulin capsule in China, Macau and Hong Kong. Furthermore, our strategic investments in companies such as BioXcel Therapeutics, Nano Dimension Ltd., Alpha Tau Medical Ltd., and Pelthos Therapeutics Inc. provide potential upside through equity appreciation and dividend income.