Oramed Pharmaceuticals Reports Strategic Pivot to Investment Model, Posts $64M Net Income from Revaluation, and Initiates New VC Fund
Summary
Oramed Pharmaceuticals announced a major strategic shift, moving from a biotech R&D focus to an investment model, reporting a $64 million net income in 2025 primarily from revaluation gains, while continuing operational losses and making high-risk investments in distressed companies.
Key Events
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Strategic Business Model Shift
The company is transitioning from a pharmaceutical R&D focus to a strategic investment model in healthcare and life sciences, alongside real estate and venture capital.
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Significant Net Income Driven by Revaluation
Reported a net income of $64.016 million for the year ended December 31, 2025, a substantial improvement from a $19.103 million net loss in 2024. This was primarily due to $89.454 million in net financial income, largely from the revaluation of investments in Alpha Tau and Scilex.
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Divestment of Oral Insulin Platform to Lifeward
Transferred its proprietary Protein Oral Delivery (POD™) technology platform, including the oral insulin program, to Lifeward Ltd. in exchange for a significant equity stake (up to 49.99% fully diluted), warrants, and 4% revenue-sharing payments from Lifeward's ReWalk products. Oramed will manage the clinical trial for the oral insulin capsule.
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Substantial Investments in Other Companies
Made significant investments including $38.156 million in Alpha Tau Medical Ltd. (17% stake), $20.809 million in Nano Dimension Ltd. (5.02% stake with activist intent), and provided up to $18 million in secured convertible notes to Lifeward Ltd. (initial $9 million funded).
Analysis
Oramed Pharmaceuticals is undergoing a significant strategic transformation, shifting from a pure pharmaceutical R&D company to an investment holding company with diverse interests. While the company reported a substantial net income of $64 million for 2025, this was primarily driven by the revaluation of its investments, rather than operational profitability, as operating losses continued. The divestment of its core oral insulin platform to Lifeward in exchange for a significant equity stake and revenue share marks a major change in its business model. However, this new strategy carries substantial risk, as both Lifeward and Scilex, where Oramed has significant financial exposure, have disclosed 'going concern' doubts. Investors should carefully assess the high-risk, high-reward nature of this new investment-centric approach and the financial health of its key investees.
At the time of this filing, ORMP was trading at $3.32 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $132.1M. The 52-week trading range was $1.82 to $3.76. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.