MediWound trial success a boon for parent company

Gal Cohen
Gal Cohen

Clal Biotechnology is expected to gain from its subsidiary’s successful trial of a wound treatment with massive potential.

The successful results of a Phase 2 clinical trial conducted by biopharmaceutical company MediWound Ltd. (Nasdaq:MDWD) has opened many doors for the company; its parent company Clal Biotechnology Industries Ltd. (TASE: CBI) can expect significant appreciation soon.

MediWound has reported the initial results of the clinical trial for EscharEx a treatment for chronic and hard-to-heal wounds were positive. The 73-patient trial was designed to examine the efficacy of the treatment in the debridement of difficult wounds of different etiologies.

Secondary objectives included determining the time to debridement, efficacy of wound healing, and other safety parameters.

The primary endpoint was met, with 55% of patients treated with the medication achieving complete debridement compared to 29% of the control group (treated with a placebo). No significant differences were found in side-effects.

Staying independent

MediWound currently sells NexoBrid, which is used in several countries worldwide for the removal of eschar in adults with deep partial- and full-thickness thermal burns; the market for such a treatment is valued at hundreds of millions of dollars annually. EscharEx, when and if it reaches market, has a much greater potential, up to billions worldwide.

In the US alone, some 1.3 million patients are treated, with treatment cost ranging from $1,000 to $2,000. The current product leading the market is from Smith & Nephew, but MediWound’s treatment works significantly faster 4-5 days compared to 28.

Smith is one of the most prominent wound management companies; it paid close to $800 million for its product three years ago. Other notable firms include ConvaTec, KCI, and Systagenix and each, given the right circumstance, may be interested in MediWound’s product.

Under such a scenario, several options exist, including the signing of a commercialization agreement or the out-right acquisition of MediWound. Alternatively, MediWound could continue developing independently; it had $45 million on hand at the end of 2015, and a shelf prospectus for raising up to $150 million.

MediWound trades on the Nasdaq at a valuation of $132 million after a 57% decrease in share value since its 2014 listing. CBI, controlled by Len Blavatnik, holds 45% of MediWound shares; the company’s value jumped by 11% during trading on Wednesday.

"The top-line data from this Phase 2 trial are highly encouraging. We conducted this trial to demonstrate EscharEx debridement efficacy in chronic wounds, to evaluate its safety and to determine the best indications to move forward in our clinical development program. We are delighted to report that we achieved all three of our goals," stated MediWound CEO Gal Cohen.

Published by Globes [online], Israel business news - www.globes-online.com - on February 4, 2016

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

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