Aegis Capital Adjusts PT on Oramed Pharma (ORMP); Approval of Afrezza Could be Mixed Bag (MNKD)
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Aegis Capital affirms its Buy rating on Oramed Pharmaceuticals (Nasdaq: ORMP) while modulating its 12-month price target of $35 out to a 15-month price target of $32.
Analyst Ram Selvaraju noted a July 15th approval decision date for MannKind's (Nasdaq: MNKD) Afrezza. The analyst notes that there should be
a positive knock-on effect for Oramed, which is developing orally-bioavailable treatments for diabetes.
We believe that, while Afrezza has a solid likelihood of receiving regulatory approval, the chances of its commercial success are much lower because of the risks and uncertainties associated with longterm use of an inhaled insulin formulation. Therefore, in our view, Afrezza's approval should reflect positively on Oramed while its commercial traction should underscore the need for novel, orally-bioavailable forms of insulin, Selvaraju noted.
The analyst also commented on recent insider sales:
We would like to take this opportunity to point out that recent statements made in the blogosphere regarding insider selling at Oramed are inaccurate and unfounded. The firm's Chief Scientific Officer, Dr. Miriam Kidron, never sold her entire stake in Oramed. She continues to hold a substantial number of options; her previous option exercise triggered an immediate tax event, which necessitated the sale of 137,300 shares of stock. Nadav Kidron, the firm's CEO, continues to hold approximately 9% of the outstanding shares of the company (not including his options pool). Accordingly, we do not believe that there is a lack of confidence in the company's prospects at the management level.
Oramed Pharma closed at $7.80 yesterday.
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