MediWound jumps on reports of acquisition talks

Len Blavatnik

The Israeli burns and wound management company has hired an investment bank that specializes in mergers and acquisitions.

Israeli biotech holding company Clal Biotechnology Industries Ltd. (TASE: CBI), which owns a 35% stake in Israeli burns and wound management company MediWound Ltd. (Nasdaq: MDWD), has notified the Tel Aviv Stock Exchange (TASE) that MediWound is conducting talks on a strategic deal.

CBI said that MediWound has hired the services of the Moelis & Co. investment bank, which specializes in mergers and acquisitions. This indicates that the aforementioned talks revolve around the sale of the company.

Sources believe that the sale of MediWound will only go ahead if there will be a major premium on the company's market cap, which is currently $125 million. MediWound's share price rose 5% yesterday, and is currently up a further 12% today.

These rises come despite the disappointing fourth quarter results that the company reported today of a $2.4 million loss on $538 million revenue. Analysts had predicted $648 million revenue. For the year, the company reported that its loss widened to $22.1 million ($0.95 per share) on revenue of $2.5 million.

MediWound is largely financed by the US Biomedical Advanced Research and Development Authority (BARDA), which is investing in R&D of the company's NexoBrid product for treatment of burns. Orders for the product if it is approved could amount to $112 million.

CBI, owned by Len Blavatnik's Clal Industries, saw its share price rise 2% today.

Published by Globes [online], Israel business news - www.globes-online.com - on March 19, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Len Blavatnik
Len Blavatnik
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