MediWound Raises $30 Million for Clinical Trial, Production Expansion

Israeli biopharmaceutical company MediWound Ltd. (Nasdaq: MDWD), which has developed and markets a burn treatment compound that is undergoing clinical trials for the treatment of wounds, announced it has raised $30 million. The collection was 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 cap of $58 million. Clal Biotechnology Industries (TASE: CBI) owns 33% of the company and has a market cap of NIS 133 million.

MediWound extracts a substance (bromelain) from the stem of the pineapple plant that can remove the burned skin without affecting healthy tissue. This process is currently a surgical procedure. The company’s product for the treatment of burns has been sold on the European market for about ten years. The adult burn treatment market in Europe is quite small and the company had first quarter sales of $4.7 million.

MediWound is taking steps to expand its market, both in the burns category and by expanding into an additional field, the treatment of wounds. For burns, it is awaiting marketing approval in the US, Japan and India, as well as expanding the existing indication for the product to pediatric burns, which represent 30% of the burn treatment market.

In wounds, the company is conducting a Phase II study in the US. Proceeds from the fundraising will be used to fund a Phase III clinical trial and to expand the company’s manufacturing facility.

Ofer Gonen, who was CEO of Clal Biotechnology, was recently named CEO of MediWound. After announcing the fundraiser, Gonen said: “We are making progress towards our strategic goals and we now have the funds to support all of the company’s activities: we are expanding our manufacturing capacity to support the sale of NexoBrid (the burns). product) around the world, and we will be able to independently fund the further development of EscharEX (the wound treatment).

MediWound has said in the past that the good results of the Phase II study of its wound treatment had sparked the interest of several strategic players. However, it is best to approach such a deal from a strong financial position, and the company now has $40 million in cash.

Published by Globes, Israel business news – en.globes.co.il – on September 22, 2022.

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