Oramed Pharmaceuticals  

Kurta Law is investigating broker recommendations of Oramed Pharmaceuticals Inc. (NASDAQ: ORMP). These investments were high-risk, making them unsuitable for many investors. Unsuitable investments violate FINRA Rule 2111, a securities industry rule that requires brokers to consider their investors’ risk tolerance, among other investor characteristics. Brokerage firms are also required to do their due diligence before approving an investment for recommendation. Representatives for brokerage firms knew or should have known about the risks associated with these investments.  

If you believe you suffered investment losses as a result of broker fraud or misconduct, you may have a case for an investment loss attorney. Contact Kurta Law for a free case evaluation: Call (877) 600-0098 or email info@kurtalawfirm.com.  

About Oramed Pharmaceuticals  

According to the prospectus, Oramed Pharmaceuticals Inc. is a pharmaceutical company currently engaged in the research and development of pharmaceutical solutions, including an orally ingestible insulin capsule for the treatment of diabetes.  

The Offering  

The prospectus dated December 24, 2013, announced that Oramed Pharmaceuticals Inc. was offering 1,580,000 shares of common stock for $10.00 per share. As of April 12, 2024, shares of Oramed Pharmaceuticals Inc. are trading for $2.52 per share.  

Risk Factors Associated with Investments in Oramed  

The following risks are identified in the prospectus. Brokers either knew or should have known about the following risks.  

Continuing Losses  

The prospectus states, “We continue and expect to incur losses in our future.” It also explains that there can be “no assurance that we will receive regulatory approval of any of our product candidates.”  

Need for Substantial Additional Capital  

The prospectus states that Oramed Pharmaceuticals Inc. required substantial additional capital to satisfy its business objectives. Failure to secure financing might delay, scale back, or eliminate one or more of its research and development programs.  

Patent Applications and Intellectual Property  

Patents for biopharmaceutical companies are complex. Oramed Pharmaceuticals Inc. would rely on patents to protect its technology. At the time, it was not certain that any of its patent applications would be approved. Furthermore, Oramed Pharmaceuticals Inc. stated that it may not be able to legally protect its intellectual property rights.  

Success Depends on Successful Commercialization of Oral Insulin Capsule  

The success of Oramed Pharmaceuticals Inc. depended on the successful commercialization of an insulin capsule. At the time, the capsule was in a very early stage of clinical development and there was a chance that trials could reveal side effects or a lack of efficacy. There was no guarantee that their drug would be approved by regulators, or that the company would find suitable manufacturing at reasonable prices.  

Aegis Capital Corp. Underwriting    

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm.  

Kurta Law Can Help  

Contact Kurta Law today for a free case evaluation – keep in mind that you have a limited time to file a claim. Our attorneys do not collect a fee unless we win your case. If you have any questions, call (877) 600-0098 or email info@kurtalawfirm.com.