MediWound Ltd., a biopharmaceutical company that develops and commercializes novel solutions for tissue repair and regeneration, announced its second quarter 2023 financial results on August 18, 2023. The company reported a net income of $916,000, or $0.099 per share, compared to a net loss of $4.35 million, or $0.92 per share, in the same period of 2022. The company also exceeded analyst expectations on revenue, which increased by 2.2% year-over-year to $4.77 million.
Improved Profitability Driven by Lower Expenses
The company attributed its improved profitability to lower expenses, mainly due to the completion of the U.S. Phase 3 clinical trial of NexoBrid, its flagship product for the treatment of severe burns. The company also benefited from higher gross margins, which improved from 64% in Q2 2022 to 69% in Q2 2023.
NexoBrid is a topical biological product that removes eschar, or dead tissue, from burn wounds without harming the healthy tissue underneath. The product has been approved in Europe and Israel since 2012, and received marketing authorization from the U.S. Food and Drug Administration (FDA) in June 2023. The company expects to launch NexoBrid in the U.S. market in the fourth quarter of 2023, in partnership with Vericel Corporation.
Revenue Growth Supported by Strong Demand and New Markets
The company’s revenue growth was supported by strong demand for NexoBrid in Europe and Israel, as well as the expansion of its distribution network to new markets, such as Japan, China, and South Korea. The company also reported positive results from its U.S. Phase 1/2 study of MW005, a topical gel for the treatment of basal cell carcinoma (BCC), a common type of skin cancer. The company plans to initiate a Phase 3 study of MW005 in the first half of 2024.
The company’s third product candidate is EscharEx, a topical biological product for the debridement of chronic wounds, such as diabetic foot ulcers and venous leg ulcers. The company received positive scientific advice from the European Medicines Agency (EMA) on the design of its Phase 3 study of EscharEx in July 2023, and expects to start the study in the second half of 2024.
Outlook and Guidance for the Remainder of 2023
The company provided an optimistic outlook and guidance for the remainder of 2023, based on its strong performance in the first half of the year and the anticipated launch of NexoBrid in the U.S. market. The company expects to generate revenue of $22 million to $24 million for the full year of 2023, representing a growth rate of 25% to 34% compared to 2022. The company also expects to achieve positive cash flow from operations in 2023, excluding milestone payments from Vericel.
The company’s CEO, Ofer Gonen, expressed his satisfaction with the company’s results and progress in a press release: “We are very pleased with our strong financial results for the second quarter and first half of 2023, which reflect our continued growth and improved profitability. We are also excited about the upcoming launch of NexoBrid in the U.S., which we believe will be a game-changer for burn care and a significant value driver for our company. We remain focused on executing our strategy of advancing our pipeline, expanding our global presence, and delivering innovative solutions for unmet needs in tissue repair and regeneration.”
The company’s stock price closed at $8.57 on August 20, 2023, down by 3.9% from a week ago.
