Oramed Pharmaceuticals, Inc. has signed a manufacturing agreement with Swiss Caps AG for the manufacture of gel capsules for its Phase I trials. In lieu of a cash payment, Swiss Caps offered a straight equity exchange for its services and will be paid in shares. This followed a due diligence process and an in-depth review of Oramed’s oral delivery technology, according to a Swiis Caps statement.

“This type of agreement means cooperation with Swiss Caps rather than just out-service of the production line. Swiss Caps brings to the table skills and knowledge that goes beyond the direct execution of our formula and we are looking forward to seeing the benefits from our group effort,” stated Nadav Kidron, Oramed’s chief executive officer.

This agreement is only for the manufacturing of the product for proof of efficacy in clinical trials. Should Swiss Caps manufacture Oramed’s drug product for commercial purposes, the contract will be renegotiated.