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MediWound shares hold Buy rating with steady target on expansion

EditorNatashya Angelica
Published 2024/08/15, 17:40
© Eran Lavie, MediWound  PR
MDWD
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On Thursday, MediWound Ltd (NASDAQ:MDWD) maintained its Buy rating and a stock price target of $25.00, as confirmed by TD Cowen. The firm's positive stance is supported by the continued expansion of NexoBrid, MediWound's product for burn care, which is now available in over 40 burn centers across the United States. The company is also anticipating a pediatric label expansion for NexoBrid, which is expected to receive approval from the FDA soon.

MediWound's progress with NexoBrid is part of a broader strategy to tap into new markets, with the U.S. being a significant area of focus due to the large number of burn centers adopting the treatment. The product's potential pediatric label expansion is seen as a key near-term milestone that could enhance its applicability and market reach.

In addition to the advancements with NexoBrid, MediWound is also preparing for further clinical development of another product, EscharEx. EscharEx is aimed at treating Venous Leg Ulcers (VLU) and is poised to enter a Phase III trial in the second half of 2024. This trial represents a critical step in the product's development pathway and could pave the way for its eventual commercialization.

The company's dual-track progress in developing treatments for both burn care and chronic wounds positions it favorably in specialized segments of the healthcare market. With a steady course set for its lead product and promising developments on the horizon for its pipeline, MediWound continues to garner analyst confidence.

The reiterated Buy rating and price target reflect the firm's assessment of MediWound's current performance and its potential for growth, driven by product rollouts and upcoming regulatory milestones. MediWound's strategic focus on market expansion and product development remains central to its valuation and analyst expectations.

In other recent news, MediWound Ltd. reported strong financial performance in the second quarter of 2024, marked by a 76% surge in revenue from the prior quarter, primarily driven by the successful U.S. launch of its flagship product NexoBrid by Vericel (NASDAQ:VCEL). The company's Q2 revenue reached $5.1 million, with a gross profit of $0.4 million. However, the operating loss for the quarter stood at $4.5 million, and the net loss for the first half of 2024 increased due to financial expenses.

Further, MediWound has completed a new manufacturing facility for NexoBrid, which is expected to increase production capacity sixfold. The company is also preparing for Phase II/III studies for EscharEx in diabetic foot ulcers and a Phase III study for venous leg ulcers. This development was supported by a cash position of $29.7 million as of June 30, 2024.

In addition, MediWound secured EUR 16.25 million in funding for EscharEx's expansion into DFU treatment and raised $25 million in financing through a strategic collaboration with Molnlycke Healthcare. The company is aligning with large players in the wound care industry for upcoming studies and potential collaborations. These recent developments underline MediWound's commitment to expanding its therapeutic solutions and manufacturing capabilities.

InvestingPro Insights

As MediWound Ltd (NASDAQ:MDWD) gains attention with its Buy rating and optimistic price target, certain financial metrics from InvestingPro offer additional insights into the company's current standing. With a market capitalization of approximately $169.89 million, MediWound is navigating the competitive healthcare market with a strategic focus on its product offerings. Notably, the company is trading at a high Price / Book multiple of 8.23, which may reflect investor confidence in the asset value of the company despite its lack of profitability over the last twelve months.

InvestingPro Tips reveal that while MediWound holds more cash than debt, which is a positive sign of financial health, analysts are not expecting the company to be profitable this year, with net income projected to drop. Additionally, the company does not pay a dividend, which could influence investment decisions for income-focused shareholders. Nevertheless, MediWound has experienced a significant price uptick of 33.56% over the last six months, indicating a strong market performance in the short term.

For investors seeking a deeper analysis, there are additional InvestingPro Tips available that could provide further context on MediWound's financial outlook and investment potential. Visit InvestingPro for more expert insights and tips related to MediWound's financial health and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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