Oramed Shares Face Critical Earnings Test

Oramed Pharmaceuticals finds itself under significant pressure as Thursday's quarterly earnings announcement approaches. The stock's recent performance has market participants on edge, with shares slipping below their 200-day moving average—a development technical analysts typically interpret as a cautionary signal.

Market analysts project disappointing results for the upcoming quarter, anticipating a loss of $0.04 per share with zero revenue. The company plans to release these figures after market close on Thursday, though some sources indicate Friday as a potential alternate date. This earnings report carries exceptional importance as it represents the first financial disclosure since Oramed's strategic reversal in late October.

Mixed Technical Signals Emerge

Monday's trading session witnessed the equity breach its 200-day moving average, descending to $2.19 before recovering to close at $2.28. While this technical breakdown suggests bearish sentiment, the session paradoxically concluded with a 4.11 percent gain accompanied by above-average trading volume—potentially indicating underlying strength.

The upward movement continued into Tuesday's session, with shares advancing 4.17 percent intraday to reach $2.375. This positive momentum raises questions about whether Oramed might be positioned for a significant trend reversal despite the prevailing uncertainty.

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

Strategic Shift and Financial Positioning

The pharmaceutical company's late-October decision to terminate its joint venture with Hefei Tianhui Biotech marked a pivotal strategic change. Oramed now intends to independently advance its oral insulin program, with plans for a new 60-patient U.S. study targeting specific patient populations demonstrating particularly high response potential.

Concurrently, the firm repurchased $13 million in warrants from Scilex Holding. Despite substantial research expenditures totaling $17.8 million and ongoing share buybacks, Oramed's financial position has strengthened considerably. The company's cash reserves and total assets expanded from $155.7 million in January 2023 to approximately $210 million by September 2025. This growth was partially driven by a $27.1 million gain from the company's investment in Alpha Tau Medical through its diversified investment portfolio.

The critical question facing investors is whether this reinforced balance sheet can adequately support the company's new strategic direction. Thursday's market reaction may provide the clearest initial answer.