Oramed Pharmaceuticals Inc. has signed a non-binding term sheet with Hefei Tianhui Biotech Co., Ltd. (HTIT) to establish a joint venture based on Oramed’s oral drug delivery technology. The proposed joint venture would focus on the development and worldwide commercialization of innovative products based on Oramed’s oral insulin and protein oral delivery (POD) pipeline and HTIT’s manufacturing capabilities and technologies.

The joint venture would be responsible for developing, marketing and commercializing drug products globally. The parties intend for the joint venture to initiate a Phase 3 oral insulin trial in the U.S.

Oramed and HTIT would initially hold equal shares, with each owning 50% of the equity. HTIT will make an initial investment of $60 million, while Oramed will invest $10 million. 

“We are thrilled to further our relationship with HTIT, expanding the reach of our oral drug delivery technology to a global market,” said Oramed CEO Nadav Kidron. “HTIT has successfully completed a Phase 3 oral insulin trial and submitted a new drug application to the National Medical Products Administration, with marketing approval currently pending in China. HTIT has state-of-the-art facilities, manufacturing capabilities and the know-how needed to produce oral insulin on an international scale. This JV is a true opportunity to leverage our strengths as well as those of our partners to fast-track our pipeline towards commercialization.”