A Prospective, Randomized, Double-blind, Placebo Controlled Study to Assess the Impact of ORMD-0801 (Insulin Capsules) on the Exogenous Insulin Requirements of Type 1 Diabetics

For the first 3 days, patients will be dosed with placebo 45 minutes prior to each of the
day's 3 meals to establish baseline insulin requirements. Patients will be dosed with
exogenous insulin according to their normal sliding scale and each patient's daily insulin
requirement will be documented. The average daily insulin requirements during the 3 day
run-in period will constitute the patient's baseline insulin level.

Following the 3 day run-in, the CGM device will be detached, its data download, and the
patient refitted with the CGM with a fresh cannula for continued monitoring during the 7-day
treatment period.

Patients will be randomized 2:1 to receive ORMD-0801 or placebo for the 7-day double-blind
treatment period.

Inclusion Criteria:

- Males and Females age 18 to 55 years old, inclusive.

- Patients must be willing and able to sign informed consent.

- Documented history of Type 1 Diabetes for at least 6 months

- Females of childbearing potential must have a negative serum pregnancy test at
screening and a negative urinary screening test following admission to the inpatient
unit

Exclusion Criteria:

- Presence of any clinically significant endocrine disease according to the
Investigator (euthyroid patients on replacement therapy will be included if the
dosage of thyroxine is stable for at least six weeks prior to Screening)

- Fasting plasma glucose >260 mg/dL at the end of run-in

- Evidence of unawareness of hypoglycemia with a documented plasma glucose ≤50 mg/dL in
the absence of symptoms of hypoglycemia

- Presence of any clinically significant condition that might interfere with the
evaluation of study medication (i.e., significant renal, hepatic, gastrointestinal
(GI), cardiovascular (CV), immune disease).

- Presence or history of cancer within the past five years with the exception of
adequately-treated localized basal cell skin cancer or in situ uterine cervical
cancer

- Laboratory abnormalities at screening including:

- Positive pregnancy test in females of childbearing potential (at screening and Day -3
of Visit 2)

- Abnormal serum thyrotropin (TSH) levels >1.5X upper limit of normal (ULN)

- Positive test for hepatitis B surface antigen and/or hepatitis C antibody

- Positive test for HIV

- Any relevant abnormality interfering with the efficacy or the safety assessments
during study drug administration

- Use of the following medications:

o History of use of aprotinin at any time prior to the screening visit (e.g.,
Trasylol, any type or dose)

- Administration of thiazolidinedione [e.g., (Actos (pioglitazone) and Avandia
(rosiglitazone)] treatment within 3 months prior to randomization.

- Administration of thyroid preparations or thyroxine (except in patients on stable
replacement therapy) within 6 weeks prior to screening visit

- Administration of systemic long-acting corticosteroids within two months or prolonged
use (more than one week) of other systemic corticosteroids or inhaled corticosteroids
(if daily dosage is > 1,000 μg equivalent beclomethasone) within 30 days prior to
screening visit

- Use of medications known to modify glucose metabolism or to decrease the ability to
recover from hypoglycemia such as oral, parenteral, and inhaled steroids (as
discussed above), beta blockers (with the exception of beta blocker ophthalmic
solutions for glaucoma or ocular hypertension), and immunosuppressive or
immunomodulating agents

- History of severe or multiple allergies, or known allergy to soy or aprotinin.

- History of tobacco or nicotine use within 10 weeks prior to screening

- Patient is on a weight loss program and is not in the maintenance phase, or patient
that started weight loss medication (e.g., orlistat or sibutramine) within 8 weeks
prior to screening

- Pregnancy or breast-feeding

- Patient has a screening visit systolic blood pressure of ≥165 mmHg or diastolic
blood pressure of ≥100 mmHg.

- Patient is, at the time of consent, a user of recreational or illicit drugs or has
had a recent history (within the last year) of drug or alcohol abuse or dependence.
(Note: Alcohol abuse includes heavy alcohol intake as defined by >3 drinks per day or
>14 drinks per week, or binge drinking)

- Elevated liver enzymes (alanine transaminase (ALT), alanine aminotransferase (AST),
alkaline phosphatase) greater than 2 times the upper limit of normal (ULN) at
Screening

- Very high triglyceride level (>600 mg/dL) at Screening

- Any clinically significant electrocardiogram (ECG) abnormality at screening or
cardiovascular disease. Clinically significant cardiovascular disease will include:

- history of stroke, transient ischemic attack, or myocardial infarction within 6
months prior to screening,

- history of or currently have New York Heart Associate Class II-IV heart failure prior
to screening, or

- uncontrolled hypertension defined as (duplicate seated reading) blood pressure ≥165
mmHg (systolic) or ≥100 mmHg (diastolic) at screening or at Visit 2.

- History of gastrointestinal disorders (e.g. hypochlorhydria) with the potential to
interfere with drug absorption

- At the Principal Investigator's discretion, any condition or other factor that is
deemed unsuitable for patient enrollment into the study.