MediWound Ltd. (NASDAQ: MDWD) is a biopharmaceutical company in the business of developing, manufacturing, and globally commercializing products that treat severe burns and wounds. In 2012, MediWound’s innovative drug, NexoBrid™, a burn and wound eschar removal agent, was approved by the European Medicines Agency (EMA) via a centralized procedure. The drug was given orphan indication for removal of dead and damaged skin in adults with burns that are deep partial and full thickness thermal burns.
NexoBrid™ was launched throughout Europe and is now being used in patients with hospitalized burns and wounds. MediWound has initiated phase III clinical trials on NexoBrid™ in the U.S. and pediatric study. The company also has two other products in its pipeline: EscharEx, which is in its phase II study and is for use in patients with chronic wounds, and MWPC003, which is about to enter its phase I study and is for use in patients with connective tissues disorders.
In November of this year, MediWound Ltd. announced third quarter 2016 financial results for the three- and nine-month periods ended September 30, 2016. The company reported revenue for the quarter of $518,000, compared to just over $100,000 for the same quarter of 2015. This was put down to the growing sales of NexoBrid™. The nine-month period results showed total revenue of $1.1 million, compared to $0.3 million for the same nine-month period of the previous year. MDWD will be spending the remainder of 2016 investing primarily in sales and marketing activities relating to the further adoption of NexoBrid™ in Europe.
Aegis Capital Corp. (http://dtn.fm/l63Bn) initiated coverage on MediWound Ltd., giving the company a ‘Buy’ rating with a price target of $11 per share. This rating was given based on the fact that the company has made significant progress in the area of wound debridement. According to the report, MDWD’s NexoBrid™ is showing significantly faster, more selective, safer, and more cost efficient results compared to current treatments. The report also highlights the possibility for the company to integrate into the chronic wound care market with EscharEx and markets relating to connective tissue disorders with its pipeline product MWPC003.
Despite Zacks Investment Research lowering the company’s status from a ‘Buy’ rating to a ‘Hold’ rating, six other research analysts have given MDWD a ‘Buy’ rating, and Wells Fargo & Co. offered MediWound an ‘Outperform’ rating with a price target on the stock of $14. The company has a consensus ‘Buy’ rating with a consensus price target of $13.25, all according to Cerbat Gem Market News and Analysis (http://dtn.fm/Ch85p).
Institutional investors and hedge funds are now said to own over 27% of MediWound shares, after Migdal Insurance & Finance Holdings, Wells Fargo & Company MN, and Oppenheimer & Co. bought new positions in the company’s stock. Wellington Management Group LLP and United Services Automobile Association also increased their positions in MediWound. As of this writing, the company has a market cap of $107.17 million, with an enterprise value at $84.15 million, and shares currently selling at around $4.90 per share.
For more information, visit the company’s website at www.mediwound.com
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