Cantor Fitzgerald launched coverage of Oramed Pharmaceuticals (NASDAQ:ORMP) with an “overweight” rating and price target of $20. The stock closed at $10.63 on Feb. 17.
Oramed is a developing novel drug formulations for oral delivery of peptides, which are usually injected. Lead candidate, ORMD-0801, is oral insulin being developed for people with Type 2 diabetes (T2D).
“We believe that ORMD-0801 may show a differentiated and superior clinical profile relative to injected insulin because of its potential to mimic a more physiological response — this route of administration allows the absorbed insulin to travel through the hepatic portal vein and target the liver directly,” writes analyst Charles Duncan, Ph.D.
In addition, he said oral insulin may have additional advantages to injected insulin “by avoiding/reducing frequent needle encounters, such as increased compliance and adherence by patients, potentially leading to better outcomes in terms of glycemic control and complications of long-term T2D.”
ORMD-0801 is currently being evaluated in two Phase 3 studies in T2D, with a first potential value-creating data readout in the second half of 2022.
Dr. Duncan said that even with low penetration, approval of ORMD-0801 in the U.S. and other markets could yield substantial revenue, and possibly strategic interest.
