Assertion Supported AI assessment confidence: 95% certainty 4/5 debate potential 2/5

Kidron: China deal pays Oramed $50M and 10% royalties, implying $1B valuation

Nadav Kidron · 1187 The Chinese Gave Him $50M For Orally Delivered Insulin Capsul Idea, Will It Take Off? · Oct 24, 2018 · at 13:14

Nadav Kidron is the CEO of Oramed Pharmaceuticals, discussing why public market valuations do not reflect the true value of their oral insulin product.

0:00 / 0:16exact quote · 16.8s

720p mp4 · rendered on demand · StarZero watermark

“They're paying us fifty million dollars and 10% royalties, and they've been investing hundreds of millions of dollars into the facility of the building in China, and China is five percent of the global market of diabetes, so the value that they gave us, this fifty million dollars, is based on one billion dollars upfront value.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

The claim, plainly

Oramed Pharmaceuticals' Chinese partner agreed to pay $50 million plus 10% royalties for Chinese licensing rights, implying a $1 billion upfront global valuation based on China representing 5% of the global diabetes market.

a quote alone can be ambiguous, so this restates it with the references and context of the conversation around it resolved. AI-written; the tape below the player is the source.

Assessment

SEC Form 8-K and Form 10-K filings for Oramed Pharmaceuticals Inc. confirm the core terms of the transaction entered into in late 2015 with Hefei Tianhui Incubator of Technologies Co., Ltd. (HTIT). The transaction had an aggregate announced value of up to $50 million, consisting of $37.5 million to $38 million in upfront and milestone licensing payments and a $12 million equity purchase for 1,155,367 shares of Oramed common stock, along with a 10% royalty on net commercial sales of ORMD-0801 within the licensed territory (China, Hong Kong, and Macau). The accompanying valuation math ($50 million representing 5% of global market implies a $1 billion upfront baseline) correctly reflects the calculation stated by then-CEO Nadav Kidron.

Oramed SEC Form 10-K and Form 8-K filings (November 30, 2015 / December 21, 2015) confirm a Technology License Agreement and Securities Purchase Agreement with HTIT totaling up to $50 million ($37.5M-$38M milestones/license plus $12M equity investment).
SEC filings confirm a 10% royalty on net sales of ORMD-0801 in the licensed territory (PRC, Hong Kong, Macau).
On June 21, 2016, Oramed confirmed the receipt of subsequent milestone payments under this agreement, reiterating the aggregate transaction terms.

Checked against

[1] fiercepharma.com [2] sec.gov [3] oramed.com [4] sec.gov [5] zacks.com [6] sec.gov [7] prnewswire.com [8] tase.co.il

site:sec.gov "Oramed Pharmaceuticals" "Hefei Tianhui" "Technology License Agreement" "milestone" "Oramed" "HTIT" 50 million 10% royalty press release OR SEC site:sec.gov "Oramed Pharmaceuticals" "Hefei Tianhui" "10%" "royalty" "ORMD-0801" "Oramed" "Hefei Tianmai" "50 million" OR "royalty" "10%" SEC 8-K OR 10-K "Oramed Pharmaceuticals" "November 30, 2015" "Form 8-K" "Hefei Tianhui"

assessed as of 2026-09-02

This assessment is an AI reading of a public statement, made against the cited references with the confidence shown. It can be wrong. The quote, the tape and the references are all on this page; if something is off, use report an error below. full disclaimer →

Mentioned

China Chinese partner Oramed Pharmaceuticals

⚑ Spot an error? Report it

More from Nadav Kidron

Opinion

Kidron: US public markets hold a bias against China-derived deals

“So I think there's a little bit of a bias in the United States about anything which is China derived.”

Nadav Kidron Oct 24, 2018 ▶ 14:42 1187 The Chinese Gave Him $50M For Orally Delivered Insulin Capsul Idea, Will It Take Off?

Prediction Open · timeframe Oct 2023

Kidron: Oramed will probably enter the Chinese market before the US

“And with the Chinese FDA, we're probably going to get to the market even before the United States.”

Nadav Kidron Oct 24, 2018 ▶ 4:33 1187 The Chinese Gave Him $50M For Orally Delivered Insulin Capsul Idea, Will It Take Off?

Prediction Didn’t hold up

Kidron: Oramed will have 90-day oral insulin trial results by August 2019

“And in about 10 months from now, we're going to have the most important milestone in our history. We're going to have the result of a ninety-day trial when we administer oral insulin, and that's going to be a very, or the most clear-cut indication as to the va…”

Nadav Kidron Oct 24, 2018 ▶ 7:31 1187 The Chinese Gave Him $50M For Orally Delivered Insulin Capsul Idea, Will It Take Off?

Opinion

Kidron: Oral delivery of proven drugs lowers risk versus novel chemicals

“Here, what we do is we're taking insulin that has been around for a long time, and we know that it works, and we have the ability to deliver it orally instead of an injection that we already proved in principle that that works. So that's why I think while ther…”

Nadav Kidron Oct 24, 2018 ▶ 10:43 1187 The Chinese Gave Him $50M For Orally Delivered Insulin Capsul Idea, Will It Take Off?

Disclosure

Kidron: Future Oramed deals will price on potential, not market cap

“Now we are, and this is public in our filing, we are in discussions with potential partners And I think everybody understands that if we're going to do a deal, if we're going to strike a deal, it's not going to be based on the current market cap, but it's goin…”

Nadav Kidron Oct 24, 2018 ▶ 14:01 1187 The Chinese Gave Him $50M For Orally Delivered Insulin Capsul Idea, Will It Take Off?

Assertion Supported

Kidron: Oramed's oral insulin delivery technology was developed by his mother

“So we have a technology that was actually developed by my mother, who is a scientist, that allows us to protect the insulin from degradation, and to take it intact into the liver.”

Nadav Kidron Oct 24, 2018 ▶ 3:19 1187 The Chinese Gave Him $50M For Orally Delivered Insulin Capsul Idea, Will It Take Off?

Kidron: China deal pays Oramed $50M and 10% royalties, implying $1B valuation

More from Nadav Kidron

Turn any episode into a week of clips.