Oramed's Q2 Net Income Jumps Amid JV Delays, Cash Drains

TL;DR

**Oramed's Q2 net income looks good, but the cash burn and stalled China JV are major red flags; proceed with extreme caution.**

AI Summary

ORAMED PHARMACEUTICALS INC. reported a net income of $13,260 thousand for the three months ended June 30, 2025, a significant increase from $9,204 thousand in the prior-year quarter. For the six months ended June 30, 2025, net income was $5,618 thousand, down from $10,738 thousand in the same period of 2024. Revenue for the six months ended June 30, 2025, was $2,000 thousand, with no revenue reported in the prior-year period. The company's cash and cash equivalents decreased substantially from $54,420 thousand at December 31, 2024, to $15,797 thousand at June 30, 2025. Total assets increased to $161,684 thousand from $155,278 thousand, primarily driven by a rise in investments at fair value from $28,788 thousand to $57,525 thousand. A key business change is the delay in the joint venture agreement with Hefei Tianhui Biotech Co., Ltd. (HTIT) due to U.S.-China trade tensions, impacting the planned oral insulin Phase 3 clinical trial. The company is now evaluating alternative partners and pathways for its oral insulin program.

Why It Matters

Oramed's significant increase in Q2 net income to $13.26 million, despite a substantial drop in cash and cash equivalents, signals a complex financial picture for investors. The stalled joint venture with HTIT due to U.S.-China trade tensions introduces considerable uncertainty for the oral insulin program, a core asset, potentially delaying market entry and competitive positioning against other diabetes treatments. This strategic setback could impact future revenue streams and shareholder value, especially as the company explores alternative partnerships. Employees and customers might face uncertainty regarding the future direction and product availability, while the broader market watches how geopolitical factors influence biotech collaborations.

Risk Assessment

Risk Level: high — The risk level is high due to a significant decrease in cash and cash equivalents from $54,420 thousand at December 31, 2024, to $15,797 thousand at June 30, 2025, representing a 71% reduction. Furthermore, the critical joint venture with HTIT for oral insulin development is on hold due to U.S.-China trade tensions, directly impacting the planned Phase 3 clinical trial and creating substantial uncertainty for a core pipeline asset.

Analyst Insight

Investors should closely monitor Oramed's cash burn rate and the progress of its oral insulin program, particularly any announcements regarding new partnerships or independent development pathways. Given the high risk associated with the stalled HTIT joint venture and declining cash reserves, consider reducing exposure or holding off on new investments until there is clearer strategic direction and financial stability.

Financial Highlights

debt To Equity

N/A

revenue

$2,000 thousand

operating Margin

N/A

total Assets

$161,684 thousand

total Debt

N/A

net Income

$5,618 thousand

eps

N/A

gross Margin

0.65%

cash Position

$15,797 thousand

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $13,260 — Net Income (Q2 2025) (Increased from $9,204 thousand in Q2 2024)
• $5,618 — Net Income (Six months ended June 30, 2025) (Decreased from $10,738 thousand in the same period of 2024)
• $2,000 — Revenues (Six months ended June 30, 2025) (No revenue reported in the prior-year period)
• $15,797 — Cash and Cash Equivalents (June 30, 2025) (Decreased from $54,420 thousand at December 31, 2024)
• $161,684 — Total Assets (June 30, 2025) (Increased from $155,278 thousand at December 31, 2024)
• $57,525 — Investments at Fair Value (June 30, 2025) (Increased from $28,788 thousand at December 31, 2024)
• 41,003,600 — Common Stock Shares Outstanding (August 12, 2025) (Total shares outstanding)
• $3,240 — Research and Development Expenses (Six months ended June 30, 2025) (Increased from $2,621 thousand in the same period of 2024)
• $3,762 — General and Administrative Expenses (Six months ended June 30, 2025) (Increased from $3,476 thousand in the same period of 2024)
• $12,808 — Financial Income, Net (Six months ended June 30, 2025) (Decreased from $19,322 thousand in the same period of 2024)

Key Players & Entities

• ORAMED PHARMACEUTICALS INC. (company) — Registrant
• Hefei Tianhui Biotech Co., Ltd. (company) — Joint Venture Partner (HTIT)
• OraTech (company) — Joint Venture Entity
• Scilex Holding Company (company) — Debtor for Tranche A and B Notes
• Alpha Tau Medical Ltd. (company) — Clinical-stage investment
• Oravax Medical Inc. (company) — 63% owned subsidiary
• Nasdaq Capital Market (regulator) — Stock Exchange
• SEC (regulator) — Securities and Exchange Commission
• Bank of Israel (regulator) — Source of exchange rate
• Delaware (regulator) — State of incorporation

FAQ

Risk Factors

• Joint Venture Delay [high — operational]: The joint venture agreement with Hefei Tianhui Biotech Co., Ltd. (HTIT) has been delayed due to U.S.-China trade tensions. This directly impacts the planned oral insulin Phase 3 clinical trial, a critical step for product development.
• Cash Burn Rate [high — financial]: Cash and cash equivalents decreased substantially from $54,420 thousand at December 31, 2024, to $15,797 thousand at June 30, 2025. This represents a significant reduction in liquidity, requiring careful management of operating expenses and funding.
• Clinical Trial Pathway Uncertainty [medium — regulatory]: The delay in the joint venture and the subsequent need to evaluate alternative partners and pathways for the oral insulin program introduces uncertainty regarding the timeline and execution of the Phase 3 clinical trial.
• U.S.-China Trade Tensions [medium — market]: Geopolitical tensions between the U.S. and China have directly led to the delay of a key business agreement, highlighting the company's exposure to international trade disputes and their impact on strategic partnerships.

Industry Context

The pharmaceutical industry, particularly in the development of novel drug delivery systems like oral insulin, is characterized by high R&D costs, long development cycles, and significant regulatory hurdles. Companies often rely on strategic partnerships and joint ventures to share risks and accelerate development. The competitive landscape is intense, with established players and emerging biotechs vying for market share.

Regulatory Implications

The delay in the oral insulin Phase 3 trial due to U.S.-China trade tensions highlights the sensitivity of pharmaceutical development to geopolitical factors and international trade policies. Companies must navigate complex regulatory environments in multiple jurisdictions, and any disruption to international collaborations can significantly impact timelines and market access.

What Investors Should Do

1. Monitor cash burn and funding strategy.
2. Track progress on alternative partnerships for oral insulin.
3. Analyze the drivers of increased R&D and G&A expenses.

Key Dates

• 2025-06-30: End of Q2 2025 — Reporting period for interim financial statements, showing a significant increase in quarterly net income but a decrease in year-to-date net income and a substantial drop in cash reserves.
• 2025-06-30: Six months ended June 30, 2025 — Period during which the company generated $2,000 thousand in revenue for the first time, but also experienced a decrease in year-to-date net income and a significant decline in cash and cash equivalents.
• 2024-12-31: End of Fiscal Year 2024 — Baseline for comparison of cash and cash equivalents, which stood at $54,420 thousand, significantly higher than the $15,797 thousand reported at June 30, 2025.

Glossary

Investments at fair value

Assets held by the company whose value is determined by their current market price. These can fluctuate based on market conditions. (A significant increase in these investments, from $28,788 thousand to $57,525 thousand, contributed to the overall rise in total assets, but also implies potential market volatility.)

Accumulated deficit

The total net losses of a company since its inception, less any net income. It represents a negative balance in retained earnings. (The company has an accumulated deficit of $170,970 thousand as of June 30, 2025, indicating that cumulative losses still outweigh cumulative profits.)

Non-controlling interests

The portion of equity in a subsidiary that is not attributable to the parent company. It represents the ownership stake of other shareholders in consolidated entities. (A negative non-controlling interest of ($946) thousand suggests potential complexities or liabilities associated with subsidiaries not fully owned by Oramed.)

Operating lease right-of-use assets

Assets recognized under accounting standards for leases, representing the right to use an asset for a specified period. (These assets have increased from $414 thousand to $882 thousand, indicating an expansion in leased facilities or equipment.)

Year-Over-Year Comparison

Compared to the prior year, Oramed Pharmaceuticals Inc. shows a mixed financial picture. While the three months ended June 30, 2025, saw a significant net income increase to $13,260 thousand from $9,204 thousand, the six-month period's net income declined to $5,618 thousand from $10,738 thousand. Notably, the company generated $2,000 thousand in revenue for the six months, a stark contrast to zero revenue in the prior year. However, cash and cash equivalents have drastically reduced from $54,420 thousand to $15,797 thousand, and R&D and G&A expenses have both risen. A key risk factor is the delay in the oral insulin joint venture due to trade tensions, impacting clinical trial progress.

Key Financial Figures

• $0.012 — ich registered Common Stock, par value $0.012 ORMP The Nasdaq Capital Market, Tel Avi
• $1.00 — by the Bank of Israel, was NIS 3.372 to $1.00. Unless indicated otherwise by the cont

Filing Documents

• ea0252270-10q_oramed.htm (10-Q) — 935KB
• ea025227001ex31-1_oramed.htm (EX-31.1) — 10KB
• ea025227001ex31-2_oramed.htm (EX-31.2) — 10KB
• ea025227001ex32-1_oramed.htm (EX-32.1) — 3KB
• ea025227001ex32-2_oramed.htm (EX-32.2) — 3KB
• 0001213900-25-076668.txt ( ) — 6522KB
• ormp-20250630.xsd (EX-101.SCH) — 64KB
• ormp-20250630_cal.xml (EX-101.CAL) — 40KB
• ormp-20250630_def.xml (EX-101.DEF) — 332KB
• ormp-20250630_lab.xml (EX-101.LAB) — 541KB
• ormp-20250630_pre.xml (EX-101.PRE) — 341KB
• ea0252270-10q_oramed_htm.xml (XML) — 804KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1

- FINANCIAL STATEMENTS

ITEM 1 - FINANCIAL STATEMENTS 1

- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 29

- QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 37

- CONTROLS AND PROCEDURES

ITEM 4 - CONTROLS AND PROCEDURES 37

- OTHER INFORMATION

PART II - OTHER INFORMATION 38 ITEM 1A - RISK FACTORS 38

- UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 38

- EXHIBITS

ITEM 6 - EXHIBITS 39 As used in this Quarterly Report on Form 10-Q, the terms "we," "us," "our," "Oramed" and the "Company" mean Oramed Pharmaceuticals Inc. and our wholly-owned subsidiaries, unless otherwise indicated. All dollar amounts refer to U.S. Dollars unless otherwise indicated. On June 30, 2025, the exchange rate between the New Israeli Shekel, or NIS, and the dollar, as quoted by the Bank of Israel, was NIS 3.372 to $1.00. Unless indicated otherwise by the context, statements in this Quarterly Report on Form 10-Q that provide the dollar equivalent of NIS amounts or provide the NIS equivalent of dollar amounts are based on such exchange rate. i Cautionary Statement Regarding Forward-Looking Statements The statements contained in this Quarterly Report on Form 10-Q that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws and the Israeli securities law. Words such as "expects," "anticipates," "intends," "plans," "planned expenditures," "believes," "seeks," "estimates," "considers" and similar expressions or variations of such words are intended to identify forward-looking Report on Form 10-Q. Additionally, statements concerning future matters are forward-looking statements. We remind readers that forward-looking that could cause the actual results, performance, levels of activity, or our achievements, or industry results, to be materially different from any future results, performance, levels of activity, or our achievements, or industry results, expressed or implied by such forward-looking

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

- FINANCIAL STATEMENTS

ITEM 1 - FINANCIAL STATEMENTS ORAMED PHARMACEUTICALS INC. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2025 TABLE OF CONTENTS Page CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS: Condensed Consolidated Balance sheets 2 Condensed Consolidated Statements of Comprehensive Income 3 Condensed Consolidated Statements of Changes in Equity 4 Condensed Consolidated Statements of Cash Flows 5 Notes to Condensed Consolidated Financial Statements 6-28 1 ORAMED PHARMACEUTICALS INC. INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS U.S. Dollars in thousands (except share and per share data) (UNAUDITED) June 30, December 31, 2025 2024 Assets CURRENT ASSETS: Cash and cash equivalents $ 15,797 $ 54,420 Short-term deposits 22,865 55,281 Marketable securities 1,753 3,441 Investments at fair value 57,525 28,788 Prepaid expenses and other current assets 1,086 1,291 Total current assets 99,026 143,221 LONG-TERM ASSETS: Long-term deposits 2 2 Investments at fair value 8,789 7,387 Investment in associate at fair value 44,298 - Loan to an equity method investee 2,529 - Advance payments for real estate 1,951 - Other non-marketable equity securities 3,524 3,524 Amounts funded in respect of employee rights upon retirement 38 32 Property and equipment, net 645 698 Operating lease right-of-use assets 882 414 Total long-term assets 62,658 12,057 Total assets $ 161,684 $ 155,278 Liabilities and stockholders' equity CURRENT LIABILITIES: Accounts payable and accrued expenses $ 2,159 $ 5,140 Payable to related parties 34 329 Deferred income 1,236 - Operating lease liabilities 264 216 Total current liabilities 3,693 5,685 LONG-TERM LIABILITIES: Long-term deferred revenues 2,000 4,000 Long-term deferred income 1,724 - Employee rights upon retirement 36 30 Operating lease liabilities 648 156 Other liabilities - 60 Total long-term liabilities 4,408 4,246 COMMITMENTS (note 9) EQUITY ATTRIBUTABLE TO COMPANY'S STOCKHOLDERS: Common stock, $ 0.012 par value ( 60,000,000 authorized shares; 40,845,087 and 39,919,54

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