Oramed Pharmaceuticals (ORMP) Q2 2024 earnings summary

Executive summary

• Achieved net income of $10.7M for the six months ended June 30, 2024, reversing a net loss of $4.9M year-over-year, driven by financial income from the Scilex transaction and reduced R&D and G&A expenses.

• Research and development activities were significantly reduced following the termination of Phase 3 oral insulin trials, with a new protocol submitted to the FDA and a joint venture agreement initiated with HTIT Biotech.

• A $20M stock buyback program was authorized in June 2024, with initial repurchases occurring after quarter-end.

Financial highlights

• Revenues were $0 for the six months ended June 30, 2024, compared to $1.34M in the prior year period, due to the end of revenue recognition from the HTIT license agreement.

• Net income for the six months was $10.7M, compared to a net loss of $4.9M year-over-year; net income for the quarter was $9.2M versus a loss of $1.3M.

• Financial income, net, rose to $19.3M for the six months, mainly from the revaluation of Scilex investments.

• R&D expenses decreased 58% year-over-year to $2.6M for the six months; G&A expenses decreased 6% to $3.5M.

• Cash and cash equivalents increased to $84.8M as of June 30, 2024, from $9.1M at year-end 2023.

Outlook and guidance

• Current cash resources and commitments are expected to support planned activities and expenditures for at least the next 12 months.

• R&D expenses are expected to remain the major operating expense, but at a reduced level pending strategic review and new clinical trial plans.