Lifeward's Acquisition of Oramed's Oral Protein Delivery Technology: Analysis of Business Transformation and Valuation Impact

Based on the collected detailed information, I will provide you with a systematic and comprehensive analysis report.

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According to the official announcement, Lifeward Ltd. (NASDAQ: LFWD) and Oramed Pharmaceuticals Inc. (NASDAQ: ORMP) announced on January 13, 2026 that they had signed a binding strategic transaction agreement [1][2]. The core arrangements of the transaction are as follows:

• Lifeward obtains Oramed’s proprietary Protein Oral Delivery (POD™) technology, which represents years of R&D achievements in converting injectable therapies into oral medications [1]
• Oramed will receive up to 49.99% of Lifeward’s equity, in the form of Lifeward common stock, pre-funded warrants, and warrants that can be used to additionally acquire up to $7 million worth of Lifeward common stock [2]

The transaction involves a strategic investment with a total value of up to approximately $47 million, with the specific composition as follows:

Financing Component	Amount	Description
Convertible Note A	$10 million	Oramed invests $9 million, another investor invests $1 million, annual interest rate of 8%, with 100% warrant coverage
Convertible Note B	$10 million	Automatically triggered upon milestone achievement, Oramed invests $9 million, annual interest rate of 8%
Milestone Financing	Up to $25 million	Additional financing based on specific revenue or stock price targets

• Oramed will be responsible for the clinical development management of the POD™ platform, including planned clinical trials [1]
• Oramed will earn a 4% net sales royalty from the ReWalk product line over the next 10 years [2]

• Current stock price: $0.63, market capitalization: $11.19 million [3]
• Stock price dropped 59.65% in the past year, 89.61% in three years, and 95.09% in five years [3]
• 52-week trading range: $0.50-$2.95 [3]

• Current stock price: $3.43, market capitalization: $143 million [3]
• Net profit of $65 million in the first three quarters of 2025 (net loss of $6.1 million in the same period last year) [4]
• Total assets increased 42% year-over-year to $220.5 million [4]

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This transaction marks Lifeward’s strategic transformation from a manufacturer focused on rehabilitation medical devices to a “diversified biomedical innovation company” [1]. This transformation has the following key characteristics:

• Original Business (MedTech):
  ReWalk® exoskeleton system and AlterG® anti-gravity treadmill, both of which have obtained FDA approval and achieved commercialization
• New Business (BioTech):
  POD™ clinical-stage oral protein delivery technology platform, with core pipeline ORMD-0801 expected to become the world’s first commercialized oral insulin drug [5]

Lifeward CEO Mark Grant said: “Oramed is the ideal strategic partner for Lifeward during a critical period of our development. This transaction is expected to provide us with financial resources to drive profitability of our mature ReWalk® and AlterG® product lines while unlocking significant growth opportunities through the acquisition of Oramed’s POD™ technology.” [1]

The POD™ technology adopts innovative pH shielding, protease protection, and absorption enhancement mechanisms, which can protect drug integrity and improve absorption efficiency [6]. This technology complements Lifeward’s existing medical device business, expanding the company’s capability boundaries in the field of biologic delivery.

Oramed’s committed direct investment of $18 million (two $9 million convertible notes) plus potential milestone financing of up to $25 million provides Lifeward with a sufficient capital buffer [2]. The company’s trailing four-quarter revenue in 2025 was approximately $26 million [2], and this financing scale is equivalent to about 18 months of operating capital.

According to the announcement, the POD™ technology targets the injectable drug market worth over $60 billion, and the oral insulin market alone has enormous growth potential [5].

The transaction design incorporates an elaborate risk-sharing mechanism:

• Risks borne by Lifeward:
  Obtains potential benefit rights to the POD™ technology, but does not bear the main costs of current clinical development
• Risks borne by Oramed:
  Responsible for funding and managing the upcoming clinical trials, while receiving sales royalties from the ReWalk product line as compensation [2]

This structure allows Lifeward to maintain focus on existing business operations while retaining exposure to large-scale biotech opportunities.

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After the transaction announcement, Lifeward’s stock price showed a positive reaction:

• Stock price rose 6.56% to $0.67 on the day [7]
• Market capitalization increased by approximately $709,000 [7]
• Relative trading volume reached 1.3 times, indicating increased market attention [7]

However, it should be noted that Lifeward’s stock price had already experienced a sharp decline before the announcement (nearly 60% drop in the past year), so the market reaction needs to be interpreted in this context.

1. Capital Injection Effect:
   The financing of up to $47 million provides Lifeward with significant financial flexibility. Based on the company’s current market capitalization of approximately $11.19 million, this financing scale is equivalent to 4.2 times the market capitalization, which may significantly improve the company’s capital structure [3].

2. Technology Platform Value:
   The POD™ technology represents years of R&D achievements by Oramed. Although the transaction did not disclose the standalone acquisition price of the POD™ technology, Oramed’s total assets are $220.5 million [4], and as a core asset, the value of the POD™ technology may reach the tens of millions of dollars level.

3. Analyst Expectations:
   Wall Street analysts have given Lifeward a consensus target price of $10.75, representing a potential upside of 1608% from the current stock price [3]. 4 analysts gave a “Buy” rating, while only 1 gave a “Sell” rating [3].

1. Equity Dilution Risk:
   The transfer of 49.9% equity means that the interests of existing shareholders will be significantly diluted. If Oramed exercises all warrants, the shareholding ratio of existing shareholders may decline further.

2. Debt Burden:
   Two $10 million convertible notes with an 8% annual interest rate increase the company’s debt burden. Although the convertible feature provides flexibility, interest expenses will have an impact on cash flow.

3. Business Integration Challenges:
   Shifting from medical devices to biopharmaceuticals involves completely different regulatory environments, R&D cycles, and business models, which poses new capability requirements for the management team.

Based on the transaction structure, the following changes in financial metrics can be expected:

Financial Metric	Current Status	Expected Change
Cash and Cash Equivalents	Low (sustained losses)	Significant increase (up to +$47 million)
Debt-to-Asset Ratio	High	Increase (debt financing)
R&D Expenditure	Relatively Controllable	May increase (to support POD™ development)
Revenue Sources	Single (hardware sales)	Diversified (adding technology licensing/milestone payments)
Profitability Path	Sustained Losses	Still loss-making in the short term, but long-term improvement potential increases

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1. Valuation Repair Potential:
   There is a huge gap between the current market price of $0.63 and the analyst consensus target price of $10.75 [3]. If the transaction is successfully executed and synergies are realized, the stock price may gradually return to a reasonable value.

2. Benefits of Business Diversification:
   Acquiring the POD™ technology enables Lifeward to enter the $60 billion injectable drug market [5], significantly expanding the company’s Total Addressable Market (TAM).

3. Strategic Endorsement from Oramed:
   As a leader in the oral protein delivery field, Oramed’s deep involvement with a 49.9% stake demonstrates its confidence in Lifeward’s development prospects.

4. Royalty Mechanism:
   Oramed receives a 4% sales royalty from the ReWalk product line (10-year term) [2], which ensures long-term alignment of interests between the two parties.

1. Transaction Execution Risk:
   The completion of the transaction is subject to closing conditions such as shareholder approval [2]. If shareholders vote against it or regulatory obstacles arise, the transaction may not be completed.

2. Clinical Trial Risk:
   ORMD-0801, the core product of the POD™ technology, is still in the clinical development stage. The risk of clinical trial failure may lead to a significant decline in the value of the technology.

3. Equity Dilution Risk:
   The transfer of 49.9% equity plus potential conversion of convertible notes may lead to significant dilution of existing shareholders’ interests.

4. Business Transformation Risk:
   Transforming from a medical device manufacturer to a biopharmaceutical company requires a different set of capabilities, including expertise in clinical development, regulatory affairs, and biopharmaceutical commercialization.

5. Sustained Loss Risk:
   Lifeward is currently in a state of sustained losses (EPS -$2.91 [3]), and it is difficult to achieve profitability in the short term. Investors need to be prepared for long-term holdings.

Scenario	Probability	Valuation Impact
Optimistic Scenario - POD™ technology clinical success + commercialization	20%	Stock price may rise 200-500%, reaching the $3-$5 range
Base Scenario - Transaction completed smoothly, business develops steadily	50%	Stock price rises moderately by 50-100%, returning to the $1-$1.5 range
Pessimistic Scenario - Clinical trial failure or transaction termination	30%	Stock price may fall to $0.4-$0.5 or lower

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Lifeward’s acquisition of Oramed’s POD™ technology is a strategically significant transaction, with its core value reflected in the following aspects:

This transaction transforms Lifeward from a small medical device company facing growth bottlenecks into a diversified biomedical innovation enterprise with biopharmaceutical potential. Oramed’s deep involvement as a technology partner and major shareholder provides professional support for technology development and commercialization.

The financing of up to $47 million provides the company with a sufficient capital buffer, creating conditions for achieving profitability targets. Meanwhile, the 4% ReWalk sales royalty arrangement ensures long-term alignment of interests between the two parties.

Although there are significant clinical trial and execution risks, the current low valuation (market capitalization of $11.19 million) provides a high margin of safety. If the POD™ technology achieves a breakthrough, the potential returns will be considerable.

Investors should focus on the following key indicators:

• Transaction completion progress (shareholder voting date, regulatory approval status)
• POD™ platform clinical trial progress
• Sales growth trends of Lifeward’s core businesses (ReWalk, AlterG)
• Conversion conditions and timelines of convertible notes
• Management’s specific execution plan for business strategic transformation

May consider establishing an initial position at the current price, adding positions on dips. The stop-loss level can be set around $0.50.

Recommended to wait for confirmation of transaction completion (shareholder approval) before entering, or wait for the stock price to pull back to a safer range before building a position.

This transaction represents a key step in Lifeward’s strategic transformation, with a favorable risk-reward ratio. The key to success lies in the clinical progress of the POD™ technology and the company’s execution capabilities. For investors with high risk tolerance and a positive long-term outlook on biopharmaceuticals, this is an investment opportunity worth paying attention to.

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[1] PR Newswire - “Oramed and Lifeward Announce Strategic Transaction” (https://www.prnewswire.com/news-releases/oramed-and-lifeward-announce-strategic-transaction-302659575.html)

[2] GlobeNewswire - “Lifeward Enters Transformative Strategic Investment and Partnership Agreement with Oramed” (https://www.globenewswire.com/news-release/2026/01/13/3217760/32993/en/Lifeward-Enters-Transformative-Strategic-Investment-and-Partner)

[3] Jinling API - Lifeward Real-Time Quotes and Company Profile Data

[4] Oramed Pharmaceuticals - “Oramed Reports Fiscal Third Quarter 2025 Financial Results” (https://oramed.com/oramed-reports-fiscal-third-quarter-2025-financial-results/)

[5] Yahoo Finance - “Lifeward Enters Transformative Strategic Investment” (https://finance.yahoo.com/news/lifeward-enters-transformative-strategic-investment-130000323.html)

[6] PharmaSource Global - Analysis of Oramed’s Oral Protein Delivery Technology (https://pharmasource.global/wp-content/uploads/2025/02/image-34.png)

[7] StockTitan - “Oramed and Lifeward Announce Strategic Transaction” (https://www.stocktitan.net/news/LFWD/oramed-and-lifeward-announce-strategic-umdox6fm75zz.html)