HCW starts MediWound at buy; PT $5.50

H.C. Wainwright initiated coverage of MediWound (NASDAQ:MDWD) with a “buy” rating and price target of $5.50. The stock closed at $2.58 on Aug. 2.

MediWound is developing proteolytic enzyme-based eschar debridement agents. Eschar debridement is the first and critical step in the care of acute and chronic wounds, and more than one million U.S. patients undergo debridement annually.

Analyst Swayampakula Ramakanth writes that the company’s lead product, NexoBrid, is a fast-acting, cost-efficient option that has demonstrated clinical efficacy and is approved for severe burn wound debridement in multiple jurisdictions outside of the U.S.

In January, MediWound reported promising top-line data from U.S. Phase 3 study with NexoBrid that achieved both primary and secondary endpoints. The company plans to submit a biological license application to the FDA in the second quarter of 2020.

“The strong clinical data along with previous regulatory approvals outside of the U.S. bolster our confidence in NexoBrid’s likelihood of receiving FDA approval, which could trigger a $16.5-million procurement order from BARDA, the U.S. sponsor of NexoBrid development; and a $7.5-million milestone payment from the company’s commercialization partner, Vericel,” Mr. Ramakanth said.

Using NexoBrid’s active pharmaceutical ingredient, he said the company also has developed EscharEx for treating venous leg ulcers. “We believe NexoBrid and EscharEx could become first-in-class treatments,” he added.

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