MediWound Ltd. plans to raise up to a gross $92 million in its Nasdaq IPO, including the underwriters' over-allotment options, at $14-16 per share, according to the update to its filing with the US Securities and Exchange Commission (SEC). The company plans to issue five million shares, 24% of its share capital, raising a gross $70-80 million, and has granted the underwriters options to buy up to an additional 750,000 shares. The company value for the offering is $350-370 million, after money, less than the $400 million company value it had previously hoped for.
MediWound, a developer of treatments for severe burns and chronic wounds, is a portfolio company of Clal Biotechnology Industries Ltd. (TASE: CBI), with a 63% stake. It held its last financing round in August 2013 at a company value of $200 million. Credit Suisse Securities (USA) LLC, Jefferies, and BMO Capital Markets are the underwriters for the IPO.
MediWound has no income, and it lost $15.3 million in 2013. Its cash burn rate was $3.6 million in 2013, which will rise as it expands its marketing efforts for newly approved products, and R&D costs. Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) stopped financing the MediWound's R&D costs when it withdrew its collaboration with the company. MediWound had $9.5 million in cash at the end of 2013, and Teva owed it $11.5 million, although Teva disputes this. MediWound owes Teva up to $43 million in royalties on potential future sales, and the reciprocal debts may cancel each out.
Published by Globes [online], Israel business news - www.globes-online.com - on March 4, 2014
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