Oramed Pharmaceuticals (ORMP) Q1 2025 earnings summary

Executive summary

• Revenue of $2.0M recognized in Q1 2025, primarily from the HTIT License Agreement following a waiver of claims as part of a new joint venture agreement; no revenue in Q1 2024.

• Net loss of $7.6M in Q1 2025, compared to net income of $1.5M in Q1 2024, driven by increased R&D and G&A expenses and negative financial income from Scilex investment revaluation.

• JV Agreement with HTIT for oral insulin development is on hold due to U.S.-China trade tensions, delaying Phase 3 trial plans.

• Significant investments and refinancing activities with Scilex, including convertible notes, royalty agreements, and equity stakes.

• Strategic real estate investments and loans initiated to diversify capital allocation.

Financial highlights

• Q1 2025 revenue: $2.0M (vs. $0 in Q1 2024).

• Net loss: $7.6M in Q1 2025 (vs. net income of $1.5M in Q1 2024).

• R&D expenses increased 87% YoY to $2.2M, mainly due to new Phase 3 trial preparations and higher stock-based compensation.

• G&A expenses rose 29% YoY to $2.3M, driven by executive stock-based compensation.

• Net financial expenses of $2.6M in Q1 2025, compared to $5.1M income in Q1 2024, due to Scilex investment revaluation.

• Cash and cash equivalents at March 31, 2025: $74.5M; short-term deposits: $26.7M.

• Working capital surplus: $126.0M at March 31, 2025.

Outlook and guidance

• JV with HTIT for oral insulin is delayed; Phase 3 trial in the U.S. is paused pending regulatory clarity.

• Exploring alternative partners and independent pathways for oral insulin program advancement.

• Research and development expenses expected to increase with the initiation of the revised Phase 3 trial.

• Real estate investments and strategic capital allocation to continue.