Oramed Pharmaceuticals: Biotech Firm Almost Ready to Burst

The little know medical biotech company Oramed Pharmaceuticals is finding itself in the spotlight after years of stagnation. Oramed stock (ORMP) burst upward almost 20% on the last trading day June 2nd on two pieces of news. The first and most substantial development currently is that Oramed has announced a successful screening of their centerpiece developmental stage drug ORMD-0801. The drug is an oral dose of insulin for the treatment of diabetes, one of the most widespread and talked about diseases in the Western World. With the drug passing phase IIb with flying colors, it will go on to stage 3, which is the actual testing of the drug on live patients.

The second piece of news is that the Russian Federal Service for Intellectual Property gave Oramed a patent for its 0901- Oral GLP-1 invention. This invention is a ready-to-market treatment for diabetes in the form of an injection of the drug that facilitates the secretion of insulin from the pancreas.

Interestingly, before the 20% jump, two rating agencies spoke up about their outlooks on ORMP stock. Investment banking firm MLV & Co. made clear that they reaffirm their “buy” rating for ORMP stock and analysts at Zacks upgraded ORMP stock from “sell” to “hold”. So one firm thinks the climb is imminent and the other thinks it will take time. Oramed has a lot going for it otherwise- it has numerous drugs in the pipeline and it has reasonable expectation of steady financing, which is often times a source of great stress for small cap biotech firms.

The stock’s 50 day moving average is $6.66, so this latest stock price bump sets it about that target at $6.95. Until it cools off from these levels, Oramed is a stock to keep up with, a stock to closely analyze financial statements and press releases, and perhaps soon, a stock to buy..