MediWound’s Earnings Call: Mixed Outlook with Promising Growth

Mediwound ((MDWD)) has held its Q1 earnings call. Read on for the main highlights of the call.

The recent earnings call for MediWound presented a mixed outlook for the company. While there are significant advancements in clinical trials and strategic collaborations, financial metrics reveal challenges with declining revenue and increased losses. However, the strong growth in NexoBrid’s adoption and the strategic initiatives for EscharEx show promise for future performance.

Strong Phase III Progress for EscharEx

The VALUE Phase III study for EscharEx is progressing well, with recruitment for venous leg ulcers moving forward as planned. The trial aims to enroll 216 patients across 40 sites in the US and Europe. The results from this study are expected to support regulatory submissions and enhance the commercial positioning of EscharEx.

NexoBrid Global Expansion

MediWound’s NexoBrid is experiencing a significant global expansion, particularly in the US, where there is a 207% year-over-year increase and a 31% sequential increase in revenue. The demand is also high in Japan and Europe, prompting the company to expand its manufacturing capacity to meet this growing need.

Strategic Collaborations

MediWound’s collaboration with major wound care companies such as Kerecis, Mölnlycke, and MIMEDX adds substantial validation to its clinical programs, especially for EscharEx. These partnerships are expected to bolster the company’s market presence and enhance its product offerings.

European Innovation Council Grant

The company secured a EUR2.5 million grant from the European Innovation Council to advance the clinical and regulatory development of EscharEx for diabetic foot ulcers. This financial support is crucial for accelerating the product’s development and market entry.

Decline in Total Revenue

MediWound reported a decline in total revenue for Q1 2025, with figures dropping to $4 million from $5 million in Q1 2024. This decrease is primarily attributed to lower BARDA-funded development services revenue.

Increased Operating and Net Loss

The company experienced an increase in operating loss for the quarter, reaching $5.2 million compared to $3.7 million in Q1 2024. However, the net loss was significantly reduced to $0.7 million compared to $9.7 million last year, thanks to non-cash financial income from warrant revaluation.

Reduced Cash Reserves

MediWound’s cash reserves decreased from $43.6 million at the end of 2024 to $38.7 million as of March 31, 2025. This reduction reflects the $5.1 million used to fund operations during the quarter.

Forward-Looking Guidance

Looking ahead, MediWound remains on track with its clinical trials and manufacturing expansions. The company anticipates EscharEx’s interim analysis by mid-2026 and expects the commercial availability of NexoBrid from the new facility by 2026, following regulatory approvals. These developments are poised to enhance the company’s market position and financial performance.

In summary, MediWound’s earnings call highlighted a mixed sentiment, with promising advancements in clinical trials and strategic collaborations countered by financial challenges. The company’s efforts in expanding NexoBrid globally and progressing with EscharEx’s clinical trials are key takeaways that offer a hopeful outlook for future growth.