MediWound files to raise $125m in secondary offering

Gal Cohen

The company, which is still losing money, is setting up a Phase III trial in the US for its burns treatment product.

Biomedical company MediWound Ltd. (Nasdaq:MDWD) yesterday opened the reporting season for Wall Street-listed Israeli companies. In addition to its reports for the fourth quarter of 2015 and the entire year, the company also published an expanded report for the year, and submitted a shelf prospectus for raising up to $125 million.

MediWound has developed the NexoBrid product for removing eschar (damaged tissue) in patients with deep partial-and full-thickness thermal burns. Sales of NexoBrid have begun in several countries around the world. The company's revenue totaled $267,000 in the fourth quarter of 2015, 115% more than in the corresponding quarter in 2014. Most of this growth is attributable to sales in Romania, following the humanitarian aid supplied there by the company. Revenue for 2015 as a while was up 132% to $601,000, thanks to higher sales in Europe and Israel.

MediWound is still recording red ink in its gross and operating results, and the company had net losses of $7.8 million in the fourth quarter of 2015 and $22.1 million for the year, 9% and 17% more, respectively, than its losses in the corresponding periods of 2014.

"We made meaningful strides in 2015 in enhancing interest in NexoBrid throughout Europe," said Mediwound President Gal Cohen. He added that the company had trained over 75% of the burn centers in Europe, and that over half of these burn centers had begun using the product.

Advanced clinical trial

As of now, the product has not yet been approved for marketing in the US; it is in Phase III clinical trials. "The measures we took last year put us in a strong position for achieving a number of milestones in 2016, including publication of Phase II clinical trials results for our EscharEx product, continued recruitment of patients for a Phase III trial of NexoBrid, further penetration by NexoBrid in Europe, and its commercialization in other international markets," Cohen added.

MediWound, in which Clal Biotechnology owns a 44.8% stake, held its Nasdaq IPO in 2014, raising $75 million at $14 per share, compared with the current $7.20 share price. The company had $46 million in cash at the end of 2015, and the shelf prospectus filed by the company yesterday will enable it to raise an additional $125 million through an issue of shares, options, debt, and/or a combination of the three; the money to be raised is slated for general business needs.

If the offering takes place, the existing shareholders will be able to make an offer for sale as part of it, and can sell shares for $83 million (based on the current price).

Published by Globes [online], Israel business news - - on January 26, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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