Oramed Pharmaceuticals and Lifeward said they have signed binding agreements for a strategic transaction that will move Oramed’s Protein Oral Delivery platform (POD technology) to Lifeward while positioning Oramed as a major shareholder in the medical robotics company.
Under the terms, Oramed is expected to obtain a 49.9% beneficial ownership interest in Lifeward upon satisfaction of certain conditions. The structure also includes financing intended to support Lifeward’s path toward profitability and provides Oramed with continued exposure to the oral drug delivery program it has developed.
The companies said Lifeward will acquire Oramed’s POD technology, which is designed to protect drug integrity and increase absorption to help convert injectable therapies into oral medications. Oramed is expected to continue managing the oral insulin clinical program under a clinical trial management agreement and will fund and manage an anticipated upcoming trial.
The transaction also includes a private placement of senior secured convertible notes. Lifeward will issue $10 million in convertible notes with 8% annual interest and 100% warrant coverage, with Oramed investing $9 million. A second, milestone-based $10 million senior secured convertible note—also with 8% annual interest and 100% warrant coverage—would be triggered upon the achievement of defined commercial milestones, with Oramed again expected to invest $9 million. The companies said the structure could allow Oramed to increase its ownership stake in Lifeward through conversion of the notes and exercise of warrants.
As part of the broader arrangement, Oramed is also set to receive a 4% royalty on net sales of the ReWalk franchise for up to 10 years, the companies said.
Lifeward, formerly ReWalk Robotics, sells FDA-approved mobility and rehabilitation products, including its ReWalk® Personal Exoskeleton and AlterG® Anti-Gravity Systems. The company said its ReWalk® and AlterG® product lines generated $26 million in revenue over the last four quarters. Lifeward is led by President and CEO Mark Grant, who the companies said has more than 25 years of experience in healthcare and medical technology, including leadership roles in the diabetes sector at Medtronic and Bristol Myers Squibb.
Closing is subject to customary conditions, including approval by Lifeward shareholders. The milestone-based additional notes are also contingent on meeting certain revenue-based or share price-based triggers. The securities in the private placement are expected to be offered under exemptions from registration requirements.
KEY QUOTES:
“We believe this transaction represents an important strategic milestone for Oramed. By transferring our POD technology to Lifeward with a significant ownership stake, Oramed shareholders retain substantial exposure to the oral delivery platform while simultaneously gaining meaningful participation in a proven revenue-generating medical robotics business and revenue streams, alongside Oramed’s other strategic assets. With Mark Grant’s extensive diabetes industry experience at the helm, we are confident in Lifeward’s ability to advance both the medical robotics and oral insulin platforms.”
Nadav Kidron, CEO, Oramed
“Oramed is an ideal strategic partner for Lifeward at this pivotal moment in our company’s evolution. This transaction is expected to provide us with the financial resources to achieve profitability with our proven ReWalk® and AlterG® product lines while simultaneously opening significant growth opportunities through the acquisition of Oramed’s POD technology. We see significant potential to advance the oral insulin program and build a truly diversified biomedical innovation company.”
Mark Grant, President and CEO, Lifeward
