ORMP - Investing millions Ben Shapiro joins board of Oramed Pharmaceuticals

2023-05-03 02:30:44 ET

Conservative political commentator and entrepreneur, Ben Shapiro, has taken a $4.7M stake in struggling Israeli pharma company Oramed Pharmaceuticals ( NASDAQ: ORMP ). The investment will see him join its board of directors and makes him the biggest shareholder of the company.

Following the news, shares of Oramed ( ORMP ) climbed 6.5% to $2.61 on Tuesday, and another 2% in the after-hours session.

Shapiro, 39, is the co-founder of media company The Daily Wire, and since May 2015, he is the host of "The Ben Shapiro Show," a popular podcast, and is also the author of numerous New York Times best-selling books.

Oramed ( ORMP ) engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules or pills for delivery of polypeptides. The stock price witnessed an 80% drop in January, as its drug ORMD-0801 did not meet the main goal of improving blood sugar levels in patients with Type 2 Diabetes in a phase 3 trial. The company currently commands a market cap of $97.5M.

Shapiro's words on the investment: "This is a pure investment move. I identified Oramed as an undervalued stock in January 2023 given its low market cap, publicly disclosed cash holdings, and apparent low burn rate. I have great faith that the board will be able to use the company’s capital in effective and diverse ways, including but certainly not limited to its current biotech-centered strategy."

Sell-side analysts continue to give the stock a Buy rating and an average price target of $13.60, however, SA Quant analysis provides a Hold rating .

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