Oramed Pharmaceuticals Reports $116.5M Net Income and Strategic Transformations in Latest 10-Q Filing

Oramed Pharmaceuticals Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2026. The company recorded a net income of $116.5 million, a substantial increase from $5.6 million in the same period last year. This surge in profitability was primarily driven by a notable rise in financial income, which reached $148.6 million, compared to $12.8 million in the previous year. The company did not generate any revenue during the first half of 2026, a decrease from $2 million in the same period of 2025, reflecting the completion of its obligations under a prior technology license agreement.

In terms of operational changes, Oramed underwent a strategic transformation following the transfer of its oral insulin technology to OraTech Pharmaceuticals Ltd. This shift has led to a reduction in research and development expenses, which fell by 51% to approximately $1.6 million for the six months ended June 30, 2026, compared to $3.2 million in the prior year. General and administrative expenses increased by 28% to $4.8 million, attributed to higher stock-based compensation and professional fees. The company’s operating loss for the first half of 2026 was approximately $6.4 million, a slight improvement from a loss of $7 million in the same period of 2025.

Oramed's total assets as of June 30, 2026, amounted to $369.6 million, a significant increase from $230.9 million at the end of 2025. This growth was largely due to the company's investments in various entities, including a substantial stake in Lifeward Ltd., which now represents 45% of Lifeward's outstanding shares. The company also reported a working capital surplus of approximately $42.7 million, down from $114.2 million at the end of 2025, primarily due to a decrease in cash and cash equivalents.

The company is actively pursuing strategic opportunities, including potential investments and acquisitions, as it seeks to enhance shareholder value. Oramed has also entered into a joint venture with MAR Development LLC, committing up to $1 million for the development of self-storage projects, with an expected return of 15% on invested capital. The company remains optimistic about its future, emphasizing its focus on long-term growth and innovation in the healthcare sector.

Looking ahead, Oramed's management expressed confidence in maintaining its current operational activities for at least the next 12 months, supported by its available cash resources of approximately $15.2 million. However, they acknowledged the potential challenges in securing additional financing, which could impact future operations. The company continues to monitor market conditions and is prepared to adjust its strategies as necessary to navigate the evolving landscape.