ORAMED PHARMACEUTICALS INC. Material Event - What Happened

If you follow Oramed Pharmaceuticals, you may have seen recent news. I have broken down exactly what is happening in plain English so you do not have to dig through legal documents.

1. What happened?

Oramed sold its subsidiary, Oratech Pharma, to Lifeward (NASDAQ: LFWD). In return, Oramed received 1,250,000 shares of Lifeward stock and the right to buy another 1,000,000 shares at $2.50 each. Oramed also gets 4% of future sales from specific Oratech products. Additionally, Oramed invested $9 million in Lifeward through "convertible notes." These notes pay 8% interest annually and can be turned into Lifeward stock at $2.50 per share.

2. When did it happen?

The deal closed on March 25, 2026. While the companies announced the agreement on January 22, 2026, they had to wait for regulatory approval to finalize the paperwork.

3. Why did it happen?

Oramed is simplifying its business. By selling Oratech, Oramed stops spending money on medical device development. This lets the company focus its cash and management time on its main goal: the ORMD-0801 insulin capsule.

4. Why does this matter?

Oramed is no longer just a biotech developer; it is now also an investor.

• The Upside: If Lifeward’s robotics business succeeds, Oramed wins through its stock ownership, potential warrant gains, and the 4% royalty stream.
• The Risk: Oramed’s financial health is now tied to the medical robotics market. If Lifeward struggles or fails to grow, Oramed’s $9 million investment and its stock stake could lose significant value.

5. Who is affected?

• Investors: You must now view Oramed differently. Its value no longer depends solely on diabetes drug trials; it is now sensitive to the medical device market and Lifeward’s performance.
• The Company: Oramed is cutting costs. By removing the overhead of running a separate device business, Oramed keeps more cash on hand to fund its primary drug research.

6. What happens next?

Oramed will report the value of its Lifeward investment in its next quarterly report. You should watch Lifeward’s filings. If Lifeward’s financial health changes, it could cause swings in Oramed’s reported profit.

7. What should investors know?

• Don't panic: This was a planned move to save cash for Oramed’s Phase 3 clinical trials.
• Look at the long game: Oramed believes that combining Oratech with Lifeward’s network will create more value than running the business alone.
• Watch the connection: If you own Oramed, you now have indirect exposure to the medical robotics market. Make sure your portfolio reflects this new risk, which is different from the risks of drug development.

Disclaimer: I am breaking down the news for you—this is not financial advice! Always do your own research or talk to a financial advisor before making any moves with your money.