Oramed Pharmaceuticals Reports $38.3 Million Net Income Turnaround in Latest Quarterly Filing

Oramed Pharmaceuticals Inc. reported significant financial changes in its latest quarterly filing for the period ending March 31, 2026. The company recorded a net income of $38.3 million, a substantial turnaround from a net loss of $7.6 million in the same period last year. This improvement was primarily driven by a notable increase in financial income, which reached approximately $44.8 million, compared to a loss of $2.6 million in the previous year. The company did not generate any revenue during the quarter, a decrease from $2 million reported in the prior year, which was attributed to the fulfillment of obligations under a previous licensing agreement.

In terms of operational metrics, Oramed's total current assets decreased to $68.2 million from $133.3 million at the end of 2025, largely due to a significant reduction in cash and cash equivalents, which fell from $45.9 million to $13.2 million. The company's total liabilities also decreased, resulting in a working capital surplus of approximately $58.6 million. The reduction in cash was primarily due to cash used in investing activities, which totaled $19.5 million, including investments in marketable securities and the Lifeward transaction.

Strategically, Oramed has made significant moves, including the completion of a transaction with Lifeward Ltd., which involved the transfer of its Protein Oral Delivery (POD™) technology. This transaction closed on March 25, 2026, and included the issuance of Lifeward ordinary shares and warrants to Oramed, as well as revenue-sharing agreements. The company also established a new subsidiary, OraTech Pharmaceuticals Ltd., to manage the clinical development of the POD™ technology. This strategic shift is expected to enhance Oramed's operational focus and financial performance in the long term.

The company’s research and development expenses decreased by 28% to $1.6 million, reflecting a reduction in costs associated with clinical trials and external contractors. General and administrative expenses also saw a decline of 10% to $2.1 million, primarily due to lower stock-based compensation expenses. The overall operating loss narrowed to $3.7 million from $4.5 million in the previous year, indicating improved cost management.

Looking ahead, Oramed anticipates that its strategic initiatives, particularly the partnership with Lifeward and the focus on its POD™ technology, will drive future growth. The company plans to increase its research and development activities as it prepares for a revised Phase 3 trial, which is expected to be conducted through its new subsidiary. However, the company also acknowledges the potential challenges in securing additional financing, which may impact its operational capabilities and growth trajectory.