JERUSALEM, Nov 30 (Reuters) - Israeli drug developer Oramed Pharmaceuticals said on Monday it signed a licensing and investment deal worth over $50 million with China’s Hefei Life Science & Technology Park Investments and Development Co.
Under the deal, Hefei - partly owned by Sinopharm Group - gets exclusive rights to market Oramed’s oral insulin capsule in China, Hong Kong and Macau.
It will pay Oramed $11 million plus $27 million upon achieving certain milestones as well as a 10 percent royalty on net sales of the related commercialised products.
Oramed will issue to Hefei 1.155 million restricted shares at $10.39 per share for $12 million.
Oramed Chief Executive Nadav Kidron noted that China recently became the country with the largest number of diabetics in the world.
He said the payments, royalties and investments “will have a very significant impact on Oramed’s future revenues and earnings” once the insulin capsule is approved in China.
Last month, Oramed said the drug met its main goals in a U.S. mid-stage trial of patients with Type 1 diabetes. (Reporting by Steven Scheer)
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