In connection with the private placement, investors received three year warrants to purchase an aggregate of 4.3 million shares of common stock at an exercise price of $0.90 per share.
Oramed will use the funds for its ongoing R&D efforts as well as for the next phase of the company’s clinical trials on its lead product, an oral insulin capsule. The company is currently conducting Phase IIa trials, testing the capsule for both safety and efficacy. The results from these trials are expected within the next few weeks.
Oramed is planning to launch Phase IIb trials of its oral insulin capsule by the end of 2008. The trial is intended to evaluate the safety, tolerability and efficacy on diabetic type 2 volunteers. It is anticipated that this study will be conducted over several months, and the subjects will each receive the treatment for a period of six weeks.