Oramed Shares Face Pressure Amid Strategic Pivot and Dividend Focus

Oramed Pharmaceuticals Inc. shares are undergoing a period of significant reassessment by the market, which is anticipating a substantial capital return to shareholders. The stock declined 3.49% during the last trading session, closing at a price of $3.32. This price action comes in the wake of the stock trading ex-dividend, with investor attention now firmly fixed on the scheduled cash distribution set for January 26.

The company maintains a robust financial foundation, operating without debt and holding considerable assets. Further strengthening its liquidity position, Oramed retains a $27 million promissory note and a $12 million convertible note from Scilex Holdings. These instruments are valid until October 2026 and represent potential sources for future capital inflows.

Capital Return and Its Funding Sources

A primary driver of the current market activity is Oramed's decision to deploy excess capital for a direct shareholder payout. The details of this capital return are as follows:

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• Per-Share Amount: $0.25
• Total Distribution Value: Approximately $10.5 million
• Payable Date: January 26, 2026

This shareholder return is financed in part by a recent non-dilutive payment of $18 million received from Scilex Holdings. In total, Oramed's proceeds from this investment have reached $118 million. These funds are being allocated to finance both the shareholder dividend and a $20 million strategic commitment to Lifeward.

Strategic Revaluation Following Technology Transfer

The company's current valuation is heavily influenced by a transformative partnership with Lifeward. As part of this strategic transaction, Oramed transferred ownership of its proprietary Protein Oral Delivery (POD) technology platform. In exchange, the company secured a 49.9% equity stake in Lifeward, a revenue-generating medical robotics firm. This move fundamentally alters the investment proposition, transforming Oramed from a pure-play drug developer into a shareholder of a more diversified biotechnology enterprise.

Near-Term Catalyst and Market Outlook

The impending dividend payment on January 26 remains the immediate catalyst for trading activity. As this date approaches, the stock is likely to stay in focus while investors evaluate the impact of the capital outflow on the company's remaining liquidity reserves. The strategic shift and the execution of its capital return program will be key factors watched by the market in the coming months.