Mediwound ((MDWD)) has held its Q2 earnings call. Read on for the main highlights of the call.
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MediWound’s recent earnings call highlighted a mixed sentiment, showcasing both significant progress and notable challenges. The company reported strong advancements in clinical trials and partnerships, alongside impressive revenue growth in the U.S. market for NexoBrid. However, these achievements were tempered by an increased net loss and higher expenses impacting financial performance. Despite these hurdles, strategic advancements and collaborations position MediWound for future growth.
EscharEx VALUE Phase III Trial Progress
The EscharEx VALUE Phase III trial is making strides with active patient enrollment. MediWound aims to enroll 216 patients across 40 sites in the U.S. and Europe. The trial is bolstered by new collaborations with Convatec and Essity, supporting both the ongoing venous leg ulcer (VLU) trial and the planned diabetic foot ulcer (DFU) trial.
NexoBrid U.S. Market Expansion
NexoBrid is gaining momentum in the U.S. market, evidenced by a 52% year-over-year revenue growth. This growth is driven by increased hospital unit orders and a rise in the number of ordering centers, indicating a strong market presence and acceptance.
Financial Growth in Q2 2025
MediWound experienced a 43% sequential revenue growth in the second quarter, with total revenue reaching $5.7 million, up from $5.1 million in Q2 2024. The gross profit also saw an increase, highlighting improved financial performance despite challenges.
Additional Funding from U.S. Department of Defense
The company secured an additional $3.6 million in non-dilutive funding from the U.S. Department of Defense. This brings the total program funding to $18.2 million, supporting the development of a room temperature-stable formulation of NexoBrid.
Strong Cash Position
As of June 30, 2025, MediWound reported a robust cash position with $32.9 million in cash, cash equivalents, and deposits. This financial flexibility is crucial for advancing key programs and sustaining operations.
Increased Net Loss
MediWound reported a net loss of $13.3 million or $1.23 per share in Q2 2025, compared to a net loss of $6.3 million or $0.68 per share in the same period last year. This was primarily driven by $6.6 million in noncash financial expenses.
R&D and SG&A Expense Increases
Research and development expenses rose to $3.5 million from $1.9 million in Q2 2024, while SG&A expenses increased to $3.6 million from $3 million last year. These increases have impacted the company’s overall financials.
Slight Revenue Decrease in First Half 2025
Total revenue for the first half of 2025 was $9.7 million, slightly down from $10 million in the first half of 2024. This decrease is primarily attributed to lower BARDA-funded development revenue.
Operational Loss Increase
Operating loss increased to $5.7 million in Q2 2025, up from $4.5 million in Q2 2024. This reflects higher expenses and slower revenue growth, posing challenges to the company’s financial health.
Forward-Looking Guidance
MediWound provided comprehensive guidance on its ongoing and forthcoming projects. Key updates include the active enrollment in the EscharEx VALUE Phase III trial and new collaborations with leading wound care companies. The company expects interim sample size assessment by mid-2026. Additionally, NexoBrid’s U.S. revenue is expected to continue its growth trajectory. The commissioning of a new manufacturing facility is on track for completion by year-end, with regulatory approvals anticipated in 2026. MediWound remains focused on advancing the EscharEx trial, completing manufacturing scale-up, and enhancing global recognition through clinical collaborations.
In conclusion, MediWound’s earnings call presented a balanced view of progress and challenges. While the company faces financial hurdles, its strategic advancements and collaborations underscore a promising future. Investors and stakeholders can remain optimistic about MediWound’s potential for growth and market expansion.