Oramed's Pivot Pays Off: From Pharma Hopeful to Investment Powerhouse

NEW YORK, NY – June 25, 2026 – Oramed Pharmaceuticals has unveiled a series of significant financial and strategic victories that solidify its transformation from a clinical-stage drug developer into a diversified operating company. In a detailed letter to shareholders, CEO Nadav Kidron highlighted a strengthened balance sheet boasting approximately $270 million in assets, a staggering appreciation in its key biomedical investment, and the company's imminent inclusion in the Russell 2000 and 3000 indexes, a move expected to significantly enhance its market profile.

The news underscores the success of a dramatic strategic pivot initiated just months ago, repositioning Oramed as an active investor that deploys capital and operational expertise across the biomedical landscape. The market is taking notice, as the company's results demonstrate a clear departure from the high-risk, cash-intensive model of traditional drug development toward a strategy of active portfolio management and value creation.

From Oral Insulin to Active Investor: A Strategic Metamorphosis

Oramed's current success is rooted in a fundamental shift in its corporate identity. For years, the company was synonymous with its quest to develop an oral insulin capsule. That chapter effectively closed in March 2026 with a transformative transaction that saw Oramed transfer its oral drug-delivery platform to Lifeward Ltd. (NASDAQ: LFWD). Rather than a simple sale, the deal converted Oramed's primary R&D asset into a substantial equity and economic interest in Lifeward, a revenue-generating medical robotics company.

This move was the cornerstone of Oramed's reinvention. The company now operates as a diversified holding and operating entity, leveraging its deep industry knowledge and regulatory experience not to run its own clinical trials, but to identify and nurture high-potential companies. As Kidron stated in his letter, Oramed now aims to "identify, structure, and help unlock value across a diversified strategic portfolio." This new model allows the firm to mitigate the binary risk of single-asset drug development and instead build value across a curated selection of investments.

Evidence of this active management approach is already emerging. Oramed noted its continued support for Lifeward, which reported a 33% year-over-year reduction in quarterly operating cash burn and an 11% growth in ReWalk Personal exoskeleton sales in its first quarter. This hands-on engagement is a key differentiator in its new strategy, moving beyond passive investment to actively guide its portfolio companies toward profitability.

The Alpha Tau Effect: A Star Performer Anchors the Portfolio

The most striking validation of Oramed's investment acumen is the performance of its stake in Alpha Tau Medical Ltd. (NASDAQ: DRTS). Oramed's initial investment of approximately $38.2 million has ballooned to a current valuation of roughly $167 million, including warrants. This more than four-fold appreciation is anchored by a series of major clinical and commercial breakthroughs for Alpha Tau's pioneering Alpha DaRT™ (Diffusing Alpha-emitters Radiation Therapy) technology, which targets solid tumors.

A landmark achievement came this month when Alpha Tau secured an exclusive U.S. commercialization partnership with Tolmar for its prostate cancer treatment. The deal not only provides a powerful external validation of the Alpha DaRT platform but also includes a $20 million equity investment at a premium, up to $161.5 million in potential milestones, and a highly favorable revenue structure. Critically, Alpha Tau will supply the Alpha DaRT treatment to Tolmar at 60% of net sales, retaining the majority of the economics in a market with over 330,000 new U.S. cases annually. This positions the therapy to potentially capture a significant share of a multi-billion-dollar market.

Further bolstering investor confidence, Alpha Tau presented standout survival data for pancreatic cancer at the ASCO 2026 conference and received FDA clearance to complete enrollment for its glioblastoma trial. These developments, combined with its first marketing approval in Japan for head and neck cancer, paint a picture of a company with significant momentum across multiple high-value indications, justifying Oramed's substantial and highly profitable position.

Fortifying the Balance Sheet: Loan Success and Index Inclusion

Beyond its equity wins, Oramed has also demonstrated shrewdness in its debt-based capital deployment. In 2023, the company provided a $99.5 million secured loan to Scilex Holding Company (NASDAQ: SCLX). To date, Oramed has recouped approximately $118 million through principal, interest, and other payments. With an additional $43 million expected by October 2026, the company anticipates a total return of around $161 million on its initial loan—a significant profit on a secured transaction.

Furthermore, Oramed retains a 4% royalty on worldwide net sales of Scilex's ZTlido product for another eight years, providing a long-term revenue stream that will persist long after the loan is fully repaid. This structured deal highlights a sophisticated approach to generating returns while managing risk.

Capping off its recent successes is the company's upcoming addition to the Russell 2000 and 3000 indexes, effective June 29, 2026. This is more than a symbolic milestone. Inclusion in these widely-benchmarked indexes, which guide an estimated $12 trillion in assets, forces passive index-tracking funds to purchase Oramed's stock. This typically leads to a significant increase in trading liquidity and broadens the institutional shareholder base. For a company undergoing a strategic transformation, this enhanced visibility within the investment community is invaluable, providing a more stable and diverse investor foundation.

A Diversified Approach to Value Creation

While Alpha Tau and Scilex represent cornerstone assets, Oramed's strategy is explicitly one of diversification. The company's portfolio includes holdings in companies like Nano Dimension, BioXcel Therapeutics, and others, alongside secured loans that yield real estate investments. This diversified model is already delivering tangible results beyond the headline successes.

Oramed recently demonstrated its ability to generate swift returns with the exit of its investment in Pelthos Therapeutics. An initial investment of $1.5 million was turned into a $3.6 million realization in just seven months, showcasing the team's capacity for identifying and capitalizing on shorter-term opportunities.

“We believe the numbers speak for themselves,” CEO Nadav Kidron concluded in his letter to shareholders. By transforming its core R&D program into a strategic asset, engineering profitable debt and equity investments, and building a strong balance sheet, Oramed has successfully executed a pivot that positions it to pursue durable value for its shareholders.