Oramed Pharmaceuticals Advances Licensing Efforts While Mustang Bio Announces Strategic Asset Sale

Oramed Pharmaceuticals Inc. (NASDAQ: ORMP) disclosed in its Form 8‑K filing dated February 22, 2025, that it has taken significant steps toward finalizing a material definitive agreement related to its ZTlido Rest of World License. The announcement follows an earlier disclosure on October 8, 2024, when the Company and certain institutional investors entered into a Rest of World License Term Sheet in connection with its LidoDev Institutional Investors.

Under the new agreement, on January 2, 2025, the LidoDev Institutional Investors established RoyaltyVest Ltd. in the British Virgin Islands to serve as the dedicated licensee under the forthcoming Lido License Agreement. Shortly thereafter, on February 12, 2025, a transfer of shares representing 50% of the issued capital of RoyaltyVest Ltd. was completed, and organizational documents were subsequently amended on February 18, 2025, to grant Oramed the right to designate one-half of the Licensee’s board of directors.

The Lido License Agreement, effective as of February 22, 2025, was executed by Scilex Pharmaceuticals, Inc. (“Scilex Pharma”) with the Licensee. The agreement grants the Licensee exclusive, non-transferable rights outside the United States and certain specified territories to develop, manufacture, obtain regulatory approvals for, and commercialize the “Lido Product.” In consideration, the Licensee and Scilex Pharma will share net revenue on a 50/50 basis on a quarterly basis. Pursuant to the agreement, the Licensee is expected to use commercially reasonable efforts to secure regulatory approvals in at least one major market within 18 months and commit $200,000 annually toward such efforts until approval is achieved. Additionally, a Parent Guarantee was executed on the same day, in which Scilex offered additional assurance of its performance under the License Agreement, with provisions to terminate the guarantee automatically in the event of a Change of Control.

Meanwhile, in an attached exhibit (Exhibit 99.1) to its filing, Mustang Bio, Inc. (Nasdaq: MBIO) announced the divestiture of fixed assets and the exit from the lease for its manufacturing facility in Worcester, Massachusetts. According to the announcement issued on February 27, 2025, the clinical-stage biopharmaceutical company sold certain fixed assets, including furniture and equipment, to AbbVie Bioresearch Center Inc. for $1.0 million. In addition, Mustang Bio has relocated its corporate headquarters to 95 Sawyer Road in Waltham, Massachusetts.

Mustang Bio expects that the termination of its Worcester lease will generate approximately $2.0 million in savings over the next 24 months in lease-related cash expenses. The company will continue to rely on academic partnerships and future contract manufacturing relationships to support its clinical trials portfolio. Furthermore, the firm is preparing to initiate a novel clinical trial in the second half of 2025 for MB‑109—a combination therapy that pairs IL13Rα2‑targeted CAR‑T cell therapy (MB‑101) with an oncolytic virus (MB‑108)—aimed at treating recurrent glioblastoma and high‑grade astrocytomas.

Both developments reflect ongoing strategic realignments within the pharmaceutical and biopharmaceutical sectors as companies enhance their portfolios through licensing agreements and operational cost optimization while advancing clinical programs.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Oramed Pharmaceuticals’s 8K filing here.

About Oramed Pharmaceuticals

Oramed Pharmaceuticals Inc engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules for delivery of polypeptides. The company's product portfolio includes ORMD-0801, an oral insulin capsule, which is in phase III clinical trial for the treatment of individuals with diabetes, as well as in phase II clinical trial for the treatment of non-alcoholic steatohepatitis; and ORA-D-013-1 and ORA-D-013-2, which have completed phase II clinical trial for the treatment of type 2 diabetes.