Two months after announcing plans to sell up to half the company to New York City-based Oramed Pharmaceuticals in exchange for protein delivery technology, Marlborough-based medical device manufacturer Lifeward said its shareholders have approved the deal.
Lifeward shareholders voted to approve the deal on Thursday after the deal received unanimous approval from the manufacturer’s board of directors in January, according to a Thursday filing with the U.S. Securities and Exchange Commission.
Under the purchase agreement, Lifeward will sell up to 49.99% of the company in exchange for OraTech Pharmaceuticals, a wholly-owned subsidiary of Oramed. The agreement will see Lifeward gain access to up to $47 million in capital from Oramed and another investor through equity, convertible notes, milestone-based funding, and warrant coverage, according to a Friday press release from Lifeward.
“We are building a disciplined, diversified biomedical innovation company that we believe can deliver both near-term financial performance and meaningful long-term growth opportunities for shareholders,” Mark Grant, president and CEO of Lifeward, said in the release.
Thursday’s shareholder meeting did not finalize the deal, and the percentage of equity stake Oramed will acquire of Lifeward has not been disclosed. WBJ has reached out to Lifeward for further details.
With the deal, Lifeward will gain ownership of OraTech’s protein oral delivery technology, which protects proteins in pharmaceuticals and increases their absorption in the intestinal wall, allowing protein-based drugs to be delivered as pills instead of injections, according to Oramed’s website.
“We remain focused on driving profitability across our core neuro-rehabilitation business while selectively investing in complementary technologies that have the potential to reshape major therapeutic markets. This transaction provides the strategic foundation and financial framework to pursue that vision,” Grant said in the release.
Founded in 2001 as ReWalk Robotics, Lifeward creates medical devices to assist those with mobility for lower-limb disabilities, including exoskeletons, anti-gravity treadmills, and cycling machines.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare, manufacturing, and higher education industries.
