Oramed Pharmaceuticals, Inc. (NASDAQ:ORMP) Results Under Cloud
Ever since the Israel based development stage drug maker Oramed Pharmaceuticals, Inc. (NASDAQ:ORMP) reported what it termed as “Successful FDA Phase 2a Clinical Trial Result” for its diabetes pill, its stock has been hammered at the stock exchange. It has shed close to 37 percent of its market valuation during trading last week. During trading on 5th February, the investors paused to dig deeper into the results announcement, and finding hidden positives in the trial result, bought back into the stock in a major bull run. This sent the stock upwards by a substantive 6.7 percent during trading on 5th February.
Management Team Satisfied With Result
At the time of announcement of the trial results, Oramed Pharmaceuticals, Inc. (NASDAQ:ORMP) CEO Nadav Kidron had expressed his satisfaction with the test findings and had been quoted to have said that, “We are extremely pleased with the results which give a solid validation for Oramed’s platform technology in general and our oral insulin program in particular .Following on the results from this type 2 diabetes study we are gearing up to start a multi-center Phase 2b study later this year. We are also excited about the potential of this drug for type- 1 Diabetes and plan to initiate a Phase 2a FDA study for this indication in the near term.”
Cause Of Crash Being Investigated
In related news, law firm Bronstein, Gewirtz & Grossman, LLC announced on 4th February that it was investigating if claims can be made on behalf of the share holders of Oramed Pharmaceuticals Inc. with regards to the sudden crash of the stock price; post the announcement of the phase 2 test results of its diabetes drug. The law firm is specifically investigating if certain of the officers and directors of the drug firm had violated any of their fiduciary duties in the course of this development.