Oramed Pharmaceuticals Sees 57.8% Jump in Short Interest Amid Clinical Trial Setbacks
Oramed Pharmaceuticals experienced a 57.8% surge in short interest in January 2024, reaching 644,912 shares. The company continues to navigate challenges following the failure of its Phase 3 oral insulin trial in early 2023, which caused its stock to plummet over 70%. Oramed maintains focus on its proprietary oral drug delivery technology while exploring strategic alternatives.
Oramed Pharmaceuticals Inc. saw a significant increase in short interest in January, with short interest totaling 644,912 shares as of January 30th—an increase of 57.8% from the January 15th total of 408,588 shares. Currently, 2.0% of the company's stock is short sold, with a short-interest ratio of 2.6 days based on an average daily volume of 246,539 shares.
The clinical-stage pharmaceutical company, which focuses on developing proprietary oral drug delivery systems, experienced a dramatic stock decline of over 70% in January 2023 following the announcement that its Phase 3 ORA-D-013-1 clinical trial for oral insulin candidate ORMD-0801 did not meet its primary or secondary endpoints. This result led to a significant restructuring of the development program, although research continues into its applications for Non-Alcoholic Steatohepatitis (NASH).
Oramed's core technology is its proprietary Protein Oral Delivery (POD™) platform, which uses specialized coating and protease inhibitors to protect protein cargo from gastric degradation, allowing active ingredients to reach the small intestine and liver. The company is also developing ORMD-0901, an oral version of GLP-1 (Glucagon-like peptide-1), aiming to offer a more convenient alternative to injectable treatments for blood sugar management and weight loss.
Financially, Oramed maintains a relatively strong cash position compared to many clinical-stage peers and has focused on capital preservation and exploring strategic alternatives. The company has a market capitalization of $129.35 million, with stock trading at $3.25 as of recent data, having a twelve-month low of $1.82 and a twelve-month high of $3.71.
Several institutional investors have recently modified their holdings of ORMP. HRT Financial LP acquired a new stake worth approximately $131,000 during the fourth quarter, while Jane Street Group LLC increased its holdings by 35.3% during the first quarter. Bank of America Corp DE increased its position by 4.4% during the third quarter, and Marshall Wace LLP acquired a new stake worth $738,000 during the fourth quarter. Institutional investors and hedge funds currently own 12.73% of the stock.
The company also recently declared a dividend of $0.25 per share paid on January 26th to shareholders of record on January 16th, with a dividend payout ratio of 19.84%. Analysts currently give Oramed Pharmaceuticals a consensus rating of "Hold," with one equities research analyst maintaining a Hold rating on the stock.