Oramed Announces Shareholder Capital Return Following Strategic Windfall

Biopharmaceutical firm Oramed Pharmaceuticals Inc. has confirmed a direct capital return to its shareholders, a move enabled by substantial proceeds from a previous investment. The company's strengthened financial position, resulting from these successful exits, provides the foundation for this shareholder-friendly initiative.

A key development bolstering Oramed's balance sheet is the recent conclusion of its financial involvement with Scilex Holdings. The company received a final cash payment of $18 million, marking the complete settlement of all obligations stemming from a prior option agreement. This transaction brings the total realized gains from the original Scilex investment to $118 million, against an initial outlay of $99.5 million.

This liquidity event has fundamentally enhanced the company's financial standing. Beyond the cash received, Oramed retains additional instruments from the arrangement, including a $27 million promissory note and a $12 million convertible promissory note. These assets are expected to contribute to the company's cash flow through the end of 2026.

Board Authorizes Special Cash Dividend

In response to this influx of capital, Oramed's board of directors has approved the distribution of a special cash dividend. Shareholders will receive $0.25 per share, a payout that will be funded exclusively from the excess capital generated by the recent investment proceeds.

Dividend Details:
* Amount per Share: $0.25
* Total Distribution: Approximately $10.5 million
* Ex-Dividend Date: January 16, 2026
* Payment Date: January 26, 2026

Should investors sell immediately? Or is it worth buying Oramed?

This return of capital represents a meaningful portion of Oramed's current market valuation, which stands near $138 million, highlighting a committed focus on capital efficiency and direct shareholder value.

Share Price Maintains Constructive Technical Posture

On the charts, Oramed's equity maintains a positive medium-term outlook despite a minor pullback in the last trading session. The share price continues to trade comfortably above its key moving averages, indicating underlying strength.
* 50-Day Moving Average: $2.72
* 200-Day Moving Average: $2.41
* 52-Week High: $3.54
* 52-Week Low: $1.82

The stock has demonstrated stability above the $3.40 level, suggesting a solid support zone. Trading volume has normalized to around 242,000 shares per day, indicating a period of consolidation following the initial volatility after the dividend announcement.

The shares remain within a defined upward trend channel. A decisive breakout above the nearby resistance at the 52-week high of $3.54 could potentially open a path toward the $4.00 level. Market participants are likely to watch the approach of the ex-dividend date on January 16, 2026, as the next immediate catalyst for price action.