Mediwound ((MDWD)) has held its Q3 earnings call. Read on for the main highlights of the call.
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MediWound’s recent earnings call presented a mixed sentiment, highlighting significant advancements in clinical trials and manufacturing capabilities, alongside strong revenue growth. However, these positive aspects were tempered by increased operating losses and uncertainties related to government contracts and clinical trial timelines.
Progress in EscharEx VLU Trial
The company reported significant progress in the VALUE Phase III trial for EscharEx, which targets venous leg ulcers. Enrollment is advancing well, supported by strong results from previous Phase II trials. The trial focuses on co-primary endpoints, including complete debridement and wound closure, which are critical for the product’s success.
Expansion of NexoBrid Manufacturing
MediWound has successfully completed the commissioning of an expanded NexoBrid manufacturing facility. This expansion increases production capacity by six times, aiming to meet the rising global demand for NexoBrid, a significant step in scaling the company’s operations.
Financial Strengthening
The company’s balance sheet received a boost with $30 million in equity financing, increasing cash reserves to $60 million as of September 30, 2025. This financial strengthening positions MediWound well for future growth and strategic investments.
Revenue Growth
MediWound reported a revenue of $5.4 million for the third quarter, marking a 23% increase year-over-year. This growth was primarily driven by higher development services revenue, showcasing the company’s expanding market presence.
NexoBrid U.S. Market Performance
NexoBrid achieved record quarterly revenue in the U.S., with a 38% year-over-year increase and 26% sequential growth. This performance underscores the product’s growing acceptance and demand in the U.S. market.
Increased Operating Loss
Despite revenue growth, operating loss for the third quarter increased to $6.5 million from $5.1 million in the same period of 2024. This rise is attributed to increased R&D and SG&A expenses, reflecting the company’s investment in future growth.
Uncertainty in BARDA Contract
The earnings call highlighted uncertainties related to the BARDA contract due to a government shutdown, which caused delays in BARDA-related activities. This has created uncertainty around the timing of related revenue.
High R&D Expenses
R&D expenses rose to $3.5 million in the third quarter, indicating a higher investment in the EscharEx VALUE Phase III study. This increase reflects the company’s commitment to advancing its clinical programs.
Challenges in EU Site Activation
MediWound faced challenges in activating some EU sites for the EscharEx trial, requiring additional adjustments to meet regulatory requirements. These challenges could potentially impact the study timeline.
Forward-Looking Guidance
MediWound’s guidance for the third quarter of 2025 outlines strategic objectives and financial performance expectations. The company is advancing its EscharEx program, targeting $831 million in potential annual peak sales. It plans to start a diabetic foot ulcer study in the second half of 2026. With expanded NexoBrid manufacturing capacity, MediWound is well-positioned to meet global demand. Financially, the company reported a 23% year-over-year revenue increase and improved its gross margin to 16.5%, despite an increased operating loss of $6.5 million.
In conclusion, Mediwound’s earnings call reflected a balanced sentiment with notable achievements in clinical trials and manufacturing expansion, alongside robust revenue growth. However, these positives were countered by increased operating losses and uncertainties in government contracts and trial timelines. The company’s strategic guidance indicates a strong focus on future growth and market expansion.