Israeli wound and burns treatment developer MediWound Ltd. (Nasdaq:MDWD) has received several enquiries from potential strategic partners regarding purchase of its lead product NexoBrid, currently in clinical trials in the US. The company, which is controlled by Clal Biotechnology Industries Ltd. (TASE: CBI) (35%) reported two months ago that it had received an enquiry about a potential strategic deal. It has now reported that it has received additional enquiries that have led to talks.
MediWound also reported that it has hired Moelis & Company investment bank, which specializes in mergers and acquisitions, to assist with the negotiations.
MediWound, which has a market cap of $161 million, has seen its share price fall 13% over the past year while Clal Biotech's market cap has fallen to NIS 452 million after falling 23% over the past year.
The burns market is worth several hundred million dollars annually while the wounds market is estimated to be worth over $1 billion annually. Some 1.3 million patients suffer chronic wounds from diabetes and blocked veins.
MediWound's products are designed to freshen up chronic burns and wounds by removing dead tissues. This procedure is currently carried out through surgery as part of treatment for the burn or wound. MediWound's product is derived from pineapples and in trials conducted by the company it has removed 100% of dead tissues, almost without affecting the surrounding healthy tissue.
MediWound's product is already being marketed in Europe but sales are low because of problems obtaining indemnity for the treatment. Revenue in the first quarter of 2018 was just $520,000, similar to the corresponding quarter of 2017. In the US the product is in Phase III clinical trials. MediWound reported a loss of $4.6 million in the first quarter of 2018 and as of March 31 had $33 million cash.
Published by Globes [online], Israel business news - www.globes-online.com - on May 14, 2018
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