YAVNE, Israel - MediWound Ltd. (NASDAQ:MDWD), a leader in enzymatic therapeutics for tissue repair, has been selected to receive €16.25 million in funding from the European Innovation Council (EIC) Accelerator program. This financial boost is earmarked to advance the development of EscharEx®, the company's treatment for diabetic foot ulcers (DFUs).
The EIC Accelerator supports innovative products with grants and equity investments, along with business acceleration services. MediWound's funding package includes a €2.5 million grant and an investment, with terms currently being finalized.
Ofer Gonen, CEO of MediWound, expressed gratitude for the recognition of EscharEx's potential to significantly impact patients with DFUs. The support from the EIC will allow the company to expedite the clinical development and market introduction of EscharEx, potentially bringing the treatment to market four years sooner than initially planned.
EscharEx is a bioactive debridement therapy enriched with bromelain, currently in late-stage clinical trials. It has shown promise in safely and effectively preparing chronic wounds for healing by debridement and promoting granulation tissue. MediWound is preparing for a Phase III study for Venous Leg Ulcers in the latter half of 2024 and a Phase II/III study for DFUs in the latter half of 2025.
DFUs pose a significant health risk, with 70% of patients requiring debridement. EscharEx targets this substantial market, which includes up to 34 million diabetic patients in the U.S. and Europe at risk of developing DFUs. Without proper treatment, DFUs can lead to severe complications, including amputations and infections.
MediWound's first FDA and EMA-approved drug, NexoBrid®, is used for eschar removal in burn victims, reducing the need for surgical interventions. The company aims to replicate this success with EscharEx in the chronic wound market.
This announcement is based on a press release statement.
In other recent news, MediWound Ltd. has secured a $25 million private investment in public equity (PIPE) with a notable $15 million investment from Mölnlycke Health Care. This investment is expected to support the pre-commercial activities of EscharEx and enhance large-scale manufacturing. In addition, MediWound and Mölnlycke have initiated a collaboration agreement, offering Mölnlycke certain rights including potential strategic discussions.
In financial updates, MediWound reported a Q1 revenue increase to $5 million, up from $3.8 million in the same period last year. However, a net loss of $9.7 million was reported, primarily due to financial expenses. The company also noted significant progress in strategic plans such as the expansion of its NexoBrid product and advancements in clinical trials.
Partnerships with companies like Vericel (NASDAQ:VCEL), PolyMedics, Kaken Pharmaceuticals, and BSV have proven productive for MediWound. The company is also anticipating the start of the Phase III clinical trial for EscharEx in the second half of 2024.
InvestingPro Insights
MediWound Ltd. (NASDAQ:MDWD) is at a pivotal moment with the recent financial support from the European Innovation Council, aimed at accelerating EscharEx® development. The company's financials and market performance provide a broader context for evaluating its potential. Here are some key insights based on the latest data from InvestingPro:
- The company's market capitalization stands at a modest $189.48 million, reflecting a niche position in the biotech industry.
- MediWound's Price / Book ratio for the last twelve months as of Q1 2024 is 8.17, which is considered high and indicates that the market has high expectations for the company's asset value and potential growth.
- Despite a revenue decline of 23.32% over the same period, the company has seen a quarterly revenue growth of 30.67% in Q1 2024, suggesting potential signs of recovery or growth in its niche market.
InvestingPro Tips reveal that MediWound holds more cash than debt on its balance sheet, providing a solid financial foundation as it advances its clinical programs. However, analysts have tempered expectations with downward revisions of earnings and a consensus that the company may not achieve profitability this year. These mixed indicators underscore the importance of strategic investments like the EIC funding in driving MediWound's future success.
For investors and stakeholders, the robust return over the last year, with a one-year price total return of 104.59%, signals strong investor confidence. It's important to note, though, that MediWound does not pay dividends, which means that investors are primarily looking for capital gains rather than income.
For those interested in deeper analysis, InvestingPro offers additional insights into MediWound's financials and market performance. Subscribers can access a comprehensive list of 9 additional InvestingPro Tips for MediWound, providing a more nuanced understanding of the company's investment potential. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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