Israeli Biopharmaceutical Company MediWound Ltd. (Nasdaq: MDWD), which has developed and markets a burn treatment preparation that is in clinical trials for the treatment of wounds, announced that it has raised $30 million. Fundraising was done at market price. Investors include New Era Capital Partners, Deep Insight, IBF and Discount Capital.
Over the past year, MediWound’s stock price has fallen 51%, in line with a decline in the biomedical sector in general. The company has a current market capitalization of $58 million. Clal Biotechnology Industries (TASE: CBI) owns 33% of the company and has a market capitalization of NIS 133 million.
MediWound extracts a substance (bromelain) from the stem of the pineapple plant that can remove burned skin without harming healthy tissue. This process is currently a surgical procedure. The company’s product for the treatment of burns has been sold in the European market for about a decade. The market for adult burn treatments in Europe is quite small, and in the first quarter the company had sales of $4.7 million.
MediWound is taking steps to grow its market, both in the burns category and by expanding into an additional area, wound care. In burns, it is awaiting marketing authorization in the United States, Japan and India, as well as the extension of the product’s existing indication to children’s burns, which represent 30% of the market. treatment of burns.
In wounds, the company is conducting a phase II trial in the United States. Proceeds from its fundraising will be used to fund a Phase III clinical trial and expand the company’s production facilities.
Ofer Gonen, who was CEO of Clal Biotechnology, was recently named CEO of MediWound. Following the fundraising announcement, Gonen said, “We are making progress towards our strategic objectives, and we now have the cash to support all business channels of the business: we are increasing our capacity to support sales of NexoBrid (the burn product) worldwide, and we will be able to fund the continued development of EscharEX (the wound treatment) independently.”
MediWound has indicated in the past that the good results of the phase II trial of its wound treatment have attracted the interest of several strategic players. It’s best to approach such a deal from a strong financial position, however, and the company now has $40 million in cash.
Published by Globes, Israel business news – en.globes.co.il – September 22, 2022.
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