Oramed Pharmaceuticals Inc. reported a pre‑tax net income of $65 million for the nine months ended September 30, 2025, a dramatic turnaround from the $6.1 million loss recorded in the same period a year earlier. Total assets rose 42% to $220.5 million, driven largely by the appreciation of the company’s investment portfolio. Cash and short‑term deposits stood at $56.2 million—$52.2 million in cash and $4.0 million in deposits—down from $101 million reported in the prior year’s interim statement, reflecting a sharper drawdown of liquid assets.
The earnings surge was largely attributable to a $100 million cash repayment from Scilex Holding Company, of which Oramed received $27 million during the reporting period, and substantial unrealized fair‑value gains on equity holdings, notably a $36.9 million investment in Alpha Tau Medical Ltd. The company also recorded $2 million in revenue from the HTIT License Agreement, the only operating income generated from its core drug development activities. Operating results remained flat, with no additional revenue from the oral insulin program, underscoring the company’s continued reliance on investment returns for profitability.
Operating expenses were largely unchanged from the prior year, with research and development spending modestly lower as the company scaled back clinical activities, while general and administrative costs rose slightly to accommodate the investment‑management focus. The flat operating margin reflects the balance between reduced R&D outlays and the one‑time nature of the investment gains.
Cash liquidity has tightened compared to the $101 million reported in the previous interim period. The decline is consistent with the company’s shift toward capital allocation and the drawdown of investment proceeds to fund ongoing clinical initiatives and potential partnership opportunities. Despite the lower cash balance, the company maintains a strong liquidity cushion, with $56.2 million in liquid assets and no debt disclosed.
The stalled joint venture with Hefei Tianhui Biotech remains a strategic uncertainty, as the initial closing has been postponed. Meanwhile, Oramed continues to advance its oral insulin program, launching a new 60‑patient trial in the United States focused on high‑responder subgroups. CEO Nadav Kidron emphasized that the disciplined investment strategy has “delivered strong results” and positioned the company with greater financial flexibility to pursue strategic opportunities while advancing its oral drug delivery platform.
Overall, Oramed’s financial performance highlights a sharp rebound driven by investment gains, but the company’s long‑term sustainability will depend on the success of its oral insulin program and the resolution of joint‑venture delays. The reliance on non‑operational income raises questions about the durability of profitability if investment valuations decline or if the company’s core drug development activities remain stagnant.
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