🔒Lifeward plans to sell nearly 50% of company for $47M, acquire protein drug therapy

Lifeward, a Marlborough-based medical device manufacturer, will sell nearly half of the company to Oramed Pharmaceuticals in exchange for the New York City-based firm’s protein delivery technology. The exchange is subject to shareholder approval after receiving unanimous approval from Lifeward’s board of directors. Under the purchase agreement, Oramed and an unnamed investor will purchase up to 49.99% equity ownership of Lifeward for approximately $47 million through avenues including equity, convertible notes, and milestone-based funding, according to a Tuesday press release from Lifeward. In return for Oramed’s equity stake, Lifeward will acquire the company’s protein oral delivery technology that administers injectable proteins, such as insulin, through oral medication in order to bypass possible negative side effects of injections. The product, which is working its way through the U.S. Food and Drug Administration approval, has the potential to revolutionize the treatment of Type 2 diabetes, according to the release. Oramed’s POD technology will add to Lifeward’s current lines of mobility-related medical devices for those with physical limitations and disabilities. These products include its ReWalk Personal Exoskeleton for paralyzed users and Lifeward’s AlterG Anti-Gravity Systems, a range of treadmills using pressurized air chambers, according to the manufacturer’s website. "Oramed is the ideal strategic partner for Lifeward at this pivotal moment in our company's evolution. This transaction, if approved, is expected to provide us with the financial resources to reach profitability with our proven ReWalk and AlterG product lines while simultaneously unlocking significant growth opportunities through the integration of Oramed's POD technology,” Mark Grant, president and CEO of Lifeward, said in the release. Oramed’s POD technology successfully completed phase 2 of the FDA’s approval process, a 90-day clinical trial that tests the safety and efficacy of a treatment, but Lifeward reports its phase 3 trial failed to meet its primary endpoint. Thus, Oramed intends to conduct a new U.S.-based clinical trial with 60 patients, with the company continuing to fund and manage POD’s clinical development. “We see tremendous potential to advance the oral insulin program as we build a truly diversified biomedical innovation company … We are currently evaluating several other opportunities to expand our portfolio as we optimize revenues and are on a clear path to cash flow positive,” Grant said in the release. Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare, manufacturing, and higher education industries.