MediWound Reports Fourth Quarter and Full Year 2023 Financial Results and Provides Company Update
- Strong revenue growth with $19 million reported in 2023 and a projected $24 million for 2024.
- Successful commercial launch of NexoBrid® in key markets like the U.S., Japan, and India.
- Positive clinical data for EscharEx® compared to SANTYL® in a head-to-head analysis.
- Secured $13.0 million in R&D funding from the U.S. Department of Defense for NexoBrid®.
- Expanded European market presence and received European Commission approval for pediatric label expansion.
- Established collaborations with industry leaders for EscharEx® Phase III study.
- Reported positive results for MW005 in treating low-risk Basal Cell Carcinoma.
- Cash runway of $42 million through profitability ensuring financial stability.
- Conference call scheduled to discuss financial results and corporate updates.
- Revenue decline from $26.5 million in 2022 to $18.7 million in 2023.
- Decrease in gross profit margin from 49.7% in 2022 to 19.1% in 2023.
- Operating loss increased to $15.3 million in 2023 compared to $8.3 million in 2022.
- Net loss of $6.7 million in 2023, an improvement from $19.6 million in 2022, but still a loss.
- Adjusted EBITDA loss of $12.3 million in 2023, indicating financial challenges.
Insights
The commercial launch of NexoBrid in multiple strategic markets, including the U.S., Japan and India, represents a significant milestone for MediWound, potentially leading to increased market share and revenue growth. The reported revenue of $19 million for 2023 and the projected $24 million for 2024 indicate a positive trajectory, which is an important indicator for investors assessing the company's performance and future potential.
Moreover, the expansion of manufacturing capabilities with a new facility expected to be operational by mid-2024 could address the rising global demand for NexoBrid. This expansion is a proactive measure that could streamline supply chains and reduce the risk of shortages, particularly in light of the product's use in emergency situations, such as the treatment of burn mass casualties in Israel.
It's also worth noting the strategic importance of the awarded government funding from the U.S. Department of Defense and BARDA, which not only provides financial support but also signifies confidence in NexoBrid's utility in military and emergency preparedness contexts.
The advancement of EscharEx into Phase III clinical trials is a pivotal development for MediWound, especially given its demonstrated superiority over SANTYL in earlier comparative analyses. The potential of EscharEx as a blockbuster product hinges on its efficacy and safety profile, which will be further elucidated in the upcoming Phase III study.
Collaborations with industry leaders like 3M, Mölnlycke and MIMEDX for the Phase III study of EscharEx not only provide additional expertise but also lend credibility to the product's promise. The initiation of the study and the subsequent data presentation at leading wound care congresses could significantly influence the product's market acceptance and future revenue streams.
From a financial perspective, the reported decrease in gross profit margin from 49.7% to 19.1% year-over-year is a concern that warrants close monitoring. This sharp decline, primarily attributed to the BLA approval milestone payment from Vericel received in the previous year, highlights the impact of non-recurring revenue on overall financial health.
However, the company's cash runway, bolstered by a successful capital raise and prudent cash management, is expected to sustain operations through to profitability. This financial stability is important for the company's ability to continue investing in research and development, as well as supporting the commercialization of its products.
Additionally, the reduction in net loss per share from $3.93 to $0.75 suggests an improvement in the company's cost structure and operational efficiency, which may be viewed positively by investors seeking long-term value.
NexoBrid® commercially launched in U.S., Japan, India
Potential blockbuster EscharEx® to begin Phase III in the second half of 2024
Conference call today, March 21 at 8:30am Eastern Time
YAVNE, Israel, March 21, 2024 (GLOBE NEWSWIRE) -- MediWound Ltd. (Nasdaq: MDWD), the global leader in next-generation enzymatic therapeutics for tissue repair, today announced financial results for the fourth quarter and full year ended December 31, 2023, and provided a corporate update.
“2023 was an exceptional year for NexoBrid driven by new market launches, expanded indications, substantial new governmental grants, and increased global demand. Additionally, this lifesaving treatment was successfully battle-tested in real-life burn mass casualty incidents (BMCI) during the war in Israel. Furthermore, the full capacity of our new manufacturing facility in 2025 will enable us to meet the soaring demand of NexoBrid,” said Ofer Gonen, CEO of MediWound. “Recent clinical data further validates our pipeline product, EscharEx, demonstrating that it significantly outperformed SANTYL® in a head-to-head comparative analysis. The product has attracted research collaborations with industry leaders 3M, Mölnlycke and MIMEDX and the Phase III study is set to begin in the second half of 2024. We strongly believe in the exciting future ahead for MediWound.”
2023 Highlights and Recent Developments:
NexoBrid®
- Expanded commercial availability to U.S., Japan, and India, leading to
$19 million revenue in 2023, and a surge of orders for 2024, with$24 million projected revenue. - Construction of a new GMP-compliant state-of-the-art manufacturing facility is on track for mid-2024 completion. It is projected to achieve a 6-fold manufacturing capacity increase in 2025.
- Commercial Activities:
- Launched in the U.S. by Vericel Corp, with more than 50 burn centers submitting packages to Pharmacy and Therapeutics (P&T) committees and more than 25 already approved. Furthermore, the Centers for Medicare & Medicaid Services (CMS) awarded NexoBrid a permanent J code and granted it transitional pass-through payment status, enhancing its accessibility and reimbursement potential.
- Launched in Japan through Kaken Pharmaceuticals, and in India through Bharat Serums and Vaccines (BSV).
- Expanded European market presence by establishing a collaboration with PolyMedics Innovations (PMI) for the promotion of NexoBrid in Germany, Austria, Belgium, the Netherlands, and Luxembourg.
- Successfully fulfilled emergency demand in Israel to treat mass burn casualties resulting from the war, consuming all available non-U.S. inventory.
- Government Funding:
- Awarded
$13.0 million R&D funding by U.S. Department of Defense (DoD) to develop and produce a new NexoBrid temperature stable formulation for use as a non-surgical solution for field-care burn treatment for the U.S. Army. - Awarded
$10.1 million in additional funding from the Biomedical Advanced Research and Development Authority (BARDA) for emergency preparedness product replenishment and R&D activities.
- Awarded
- Pediatric label expansion:
- Gained European Commission approval for the removal of eschar in deep partial- and full-thickness thermal burns for all ages.
- Supplemental BLA for pediatric indication accepted for review by the U.S. Food and Drug Administration (FDA). Decision expected in the second half of 2024.
EscharEx®
- Aligned the Phase III study protocol with the European Medicine Agency (EMA) and the FDA, and expected to submit a final protocol in the first half of 2024. 216 patients will be treated globally across 40 sites with either EscharEx or a gel vehicle placebo, with an interim assessment to be performed once
67% of participants complete the study. Study initiation is expected in the second half of 2024. - Established research collaborations with 3M, Mölnlycke and MIMEDX to support the EscharEx Phase III clinical study.
- Conducted head-to-head comparative analysis of EscharEx vs SANTYL®. Data from a Phase II randomized controlled study demonstrated significant superiority of EscharEx over SANTYL in multiple clinical outcome measures: incidence of complete debridement; median time to achieve complete debridement; incidence of achieving wound bed preparation (WBP); median time to achieve WBP; and time to wound closure. The data is scheduled for oral presentation in May 2024 at three leading annual congresses dedicated to advanced wound care: The Wound Healing Society (WHS), the Symposium on Advanced Wound Care (SAWC), and the European Wound Management Association (EWMA).
MW005
- Reported positive results of the Phase I/II study to evaluate the safety and efficacy of MW005 in the treatment of low-risk Basal Cell Carcinoma (BCC). The data showed MW005 to be safe and well-tolerated, with patients achieving complete clinical and histological clearance of their target lesions.
Fourth Quarter 2023 Financial Highlights
- Revenue: Revenue for the fourth quarter 2023 was
$5.3 million , compared to$11.6 million in the fourth quarter of 2022. The decrease is primarily attributed to the BLA approval milestone payment from Vericel. - Gross Profit: Gross profit in the fourth quarter 2023 was
$0.7 million , representing13.5% of the total revenue in the fourth quarter of 2023, compared to$8.2 million , representing70.2% of total revenue in the fourth quarter of 2022. The decrease is primarily attributed to the BLA approval milestone payment from Vericel in the fourth quarter of 2022. - Expenditures:
- Research and development expenses in the fourth quarter 2023 were
$1.8 million compared to$2.7 million in the fourth quarter of 2022. This change is primarily attributed to the completion of EscharEx phase II study in 2022. - Selling, general, and administrative expenses in the fourth quarter 2023 were
$2.8 million , compared to$3.0 million in the fourth quarter of 2022.
- Research and development expenses in the fourth quarter 2023 were
- Operating Results: Operating loss in the fourth quarter of 2023 was
$3.9 million , compared to an operating profit of$2.1 million in the fourth quarter of 2022. - Net Loss: Net loss in the fourth quarter of 2023 was
$1.7 million or$0.19 per share, compared to the net loss of$7.5 million , or$1.18 per share in the fourth quarter of 2022. The decrease is primarily attributed to a favorable adjustment from the revaluation of warrants. - Non-GAAP Adjusted EBITDA: Adjusted EBITDA in the fourth quarter of 2023 was a loss of
$3.2 million , compared to a profit of$3.4 million in the fourth quarter of 2022.
Full Year 2023 Financial Highlights
- Revenue: Revenue for the year ended December 31, 2023, was
$18.7 million , compared to$26.5 million for the year ended December 31, 2022. The decrease is primarily attributed to the BLA approval milestone payment from Vericel. - Gross Profit: Gross profit for the year ended December 31, 2023, was
$3.6 million with a gross margin of19.1% , compared to$13.2 million with a gross margin of49.7% in the prior year period. The decrease is primarily attributed to the BLA approval milestone payment from Vericel. - Expenditures:
- Research and development expenses for the year ended December 31, 2023, were
$7.5 million compared to$10.2 million in the prior year. - Selling, general, and administrative expenses for the year ended December 31, 2023, were
$11.6 million , compared to$10.6 million in the prior year.
- Research and development expenses for the year ended December 31, 2023, were
- Operating Results: Operating loss for the year ended December 31, 2023, was
$15.3 million , compared to an$8.3 million loss in the year ended December 31, 2022. - Net Loss: Net loss in the year ended December 31, 2023 was
$6.7 million or$0.75 per share, compared to the net loss of$19.6 million , or$3.93 per share for the year ended December 31, 2022. - Non-GAAP Adjusted EBITDA: Adjusted EBITDA for the year ended December 31, 2023 was a loss of
$12.3 million , compared to a loss of$4.4 million for the year ended December 31, 2022.
Balance Sheet Highlights
As of December 31, 2023, the Company’s cash, restricted cash, and investments were
Conference Call
MediWound management will host a conference call for investors on Thursday, March 21, 2024, beginning at 8:30 a.m., Eastern Time to discuss these results and answer questions. Shareholders and other interested parties may participate in the conference call by dialing 1-833-630-1956 (in the U.S.), 1-80-921-2373 (Israel), or 1-412-317-1837 (outside the U.S. & Israel). The call will be available via webcast by clicking HERE or on the Events & Presentations page of Company’s website.
A replay of the call will be available on the Company’s website at www.mediwound.com.
Non-IFRS Financial Measures
To supplement consolidated financial statements prepared and presented in accordance with IFRS, the Company has provided a supplementary non-IFRS measure to consider in evaluating the Company’s performance. Management uses Adjusted EBITDA, which it defines as earnings before interest, taxes, depreciation and amortization, impairment, one-time expenses, restructuring and share-based compensation expenses.
Although Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with IFRS, we believe the non-IFRS financial measures we present provide meaningful supplemental information regarding our operating results primarily because they exclude certain non-cash charges or items that we do not believe are reflective of our ongoing operating results when budgeting, planning and forecasting and determining compensation, and when assessing the performance of our business with our senior management.
However, investors should not consider these measures in isolation or as substitutes for operating income, cash flows from operating activities or any other measure for determining the Company’s operating performance or liquidity that is calculated in accordance with IFRS. In addition, because Adjusted EBITDA is not calculated in accordance with IFRS, it may not necessarily be comparable to similarly titled measures employed by other companies. The non-IFRS measures included in this press release have been reconciled to the IFRS results in the tables below.
About MediWound
MediWound Ltd. (Nasdaq: MDWD) is the global leader in next-generation enzymatic therapeutics focused on non-surgical tissue repair. The Company specializes in the development, production and commercialization of solutions that seek to improve existing standards of care. MediWound is committed to providing rapid and effective biologics that improve patient experiences and outcomes, while reducing costs and unnecessary surgeries.
MediWound’s first drug, NexoBrid®, is an FDA-approved orphan biologic for eschar removal in severe burns that can replace surgical interventions and minimize associated costs and complications. Utilizing the same core biotherapeutic enzymatic platform technology, MediWound has developed a strong R&D pipeline including the Company’s lead drug under development, EscharEx®. EscharEx is a Phase III-ready biologic for debridement of chronic wounds with significant potential advantages over the
For more information visit www.mediwound.com and follow the Company on LinkedIn and X.
Cautionary Note Regarding Forward-Looking Statements
MediWound cautions you that all statements other than statements of historical fact included in this press release that address activities, events, or developments that we expect, believe, or anticipate will or may occur in the future are forward-looking statements. Although we believe that we have a reasonable basis for the forward-looking statements contained herein, they are based on current expectations about future events affecting us and are subject to risks, assumptions, uncertainties, and factors, all of which are difficult to predict and many of which are beyond our control. Actual results may differ materially from those expressed or implied by the forward-looking statements in this press release. These statements are often, but are not always, made through the use of words or phrases such as “anticipates,” “intends,” “estimates,” “plans,” “expects,” “continues,” “believe,” “guidance,” “outlook,” “target,” “future,” “potential,” “goals” and similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” or similar expressions.
Specifically, this press release contains forward-looking statements concerning the anticipated progress, development, study design, expected data timing, objectives anticipated timelines, expectations and commercial potential of our products and product candidates, including EscharEx® and NexoBrid®. Among the factors that may cause results to be materially different from those stated herein are the inherent uncertainties associated with the uncertain, lengthy and expensive nature of the product development process; the timing and conduct of our studies of our products and product candidates, including the timing, progress and results of current and future clinical studies, and our research and development programs; the approval of regulatory submission by the FDA, the European Medicines Agency or by any other regulatory authority, our ability to obtain marketing approval of our products and product candidates in the U.S. or other markets; the clinical utility, potential advantages and timing or likelihood of regulatory filings and approvals of our products and products; our expectations regarding future growth, including our ability to develop new products; risks related to our contracts with BARDA; market acceptance of our products and product candidates; our ability to maintain adequate protection of our intellectual property; competition risks; the need for additional financing; the impact of government laws and regulations and the impact of the current global macroeconomic climate on our ability to source supplies for our operations or our ability or capacity to manufacture, sell and support the use of our products and product candidates in the future.
These and other significant factors are discussed in greater detail in MediWound’s annual report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on March 21, 2024 and Quarterly Reports on Form 6-K and other filings with the SEC from time-to-time. These forward-looking statements reflect MediWound’s current views as of the date hereof and MediWound undertakes, and specifically disclaims, any obligation to update any of these forward-looking statements to reflect a change in their respective views or events or circumstances that occur after the date of this release except as required by law.
| Contacts: | |
| Hani Luxenburg | Daniel Ferry |
| Chief Financial Officer | Managing Director, LifeSci Advisors |
| MediWound Ltd. | 617-430-7576 |
| ir@mediwound.com | daniel@lifesciadvisors.com |
| Media Contact: | |
| Ellie Hanson | |
| FINN Partners for MediWound | |
| ellie.hanson@finnpartners.com | |
| 929-588-2008 |
| MediWound, Ltd. | |||
| Audited Condensed Consolidated Statements of Financial Position | |||
| U.S. dollars in thousands | |||
| Dec 31, | |||
| 2023 | 2022 | ||
| CURRENT ASSTS: | |||
| Cash and cash equivalents and short-term deposits | 41,708 | 33,895 | |
| Trade and other receivable | 5,141 | 9,982 | |
| Inventories | 2,846 | 1,963 | |
| Total current assets | 49,695 | 45,840 | |
| Non-current assets | |||
| Other receivables | 673 | 364 | |
| Property, plant and equipment, net | 9,228 | 2,366 | |
| Right of use assets, net | 6,698 | 1,215 | |
| Intangible assets, net | 165 | 231 | |
| Total non-current assets | 16,764 | 4,176 | |
| Total assets | 66,459 | 50,016 | |
| CURRENT LIABILITIES: | |||
| Current maturities of long-term liabilities | 1,410 | 2,242 | |
| Trade payables and accrued expenses | 5,528 | 5,656 | |
| Other payables | 3,891 | 4,159 | |
| Total current liabilities | 10,829 | 12,057 | |
| Warrants, net | 7,296 | 15,606 | |
| Liabilities in respect of IIA grants | 7,677 | 7,445 | |
| Liability in respect of TEVA | 2,256 | 2,788 | |
| Lease liabilities | 6,350 | 846 | |
| Severance pay liability, net | 456 | 360 | |
| Total non-current liabilities | 24,035 | 27,045 | |
| Shareholders' equity | 31,595 | 10,914 | |
| Total liabilities & equity | 66,459 | 50,016 | |
| MediWound, Ltd. | |||||||
| Audited Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income or Loss | |||||||
| U.S. dollars in thousands (except of share and per share data) | |||||||
| Twelve months ended | Three months ended | ||||||
| Dec 31, | Dec 31, | ||||||
| 2023 | 2022 | 2023 | 2022 | ||||
| Total Revenues | 18,686 | 26,496 | 5,338 | 11,618 | |||
| Cost of revenues | 15,108 | 13,331 | 4,619 | 3,460 | |||
| Gross profit | 3,578 | 13,165 | 719 | 8,158 | |||
| Research and development | 7,467 | 10,181 | 1,808 | 2,699 | |||
| Selling and Marketing | 4,844 | 3,725 | 1,209 | 692 | |||
| General and administrative | 6,768 | 6,920 | 1,583 | 2,269 | |||
| Other (Income) expenses | (211) | 684 | 13 | 375 | |||
| Operating loss | (15,290) | (8,345) | (3,894) | 2,123 | |||
| Financial income (expenses), net | 8,759 | (11,176) | 2,271 | (9,515) | |||
| Taxes on income | (185) | (78) | (120) | (65) | |||
| Net loss | (6,716) | (19,599) | (1,743) | (7,457) | |||
| Foreign currency translation adjustments | (13) | 14 | (11) | (20) | |||
| Total comprehensive loss | (6,729) | (19,585) | (1,754) | (7,477) | |||
| Basic and diluted loss per share: | |||||||
| Net loss per share | (0.75) | (3.93) | (0.19) | (1.18) | |||
| Weighted average number of ordinary shares | 9,013,144 | 4,987,069 | 9,219,923 | 6,332,981 | |||
| MediWound, Ltd. | |||||||
| Audited Condensed Consolidated Statements of Cash Flows | |||||||
| U.S. dollars in thousands | |||||||
| Twelve months ended | Three months ended | ||||||
| Dec 31, | Dec 31, | ||||||
| 2023 | 2022 | 2023 | 2022 | ||||
| Audited | Unaudited | ||||||
| Cash Flows from Operating Activities: | |||||||
| Net Loss | (6,716) | (19,599) | (1,743) | (7,457) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Adjustments to profit and loss items: | |||||||
| Depreciation and amortization | 1,303 | 1,272 | 346 | 284 | |||
| Share-based compensation | 1,940 | 1,946 | 298 | 642 | |||
| Revaluation of warrants accounted at fair value | (8,310) | 8,977 | (1,603) | 8,977 | |||
| Issuance expenses of warrants through profit and loss | - | 1,911 | - | 1,523 | |||
| Revaluation of liabilities in respect of IIA grants | 427 | (132) | (282) | (944) | |||
| Revaluation of liabilities in respect of TEVA | 468 | 533 | 111 | 129 | |||
| Financing income and exchange differences of lease liability | 257 | (109) | 463 | 37 | |||
| Increase in severance liability, net | 83 | 109 | 3 | 45 | |||
| Other income | (211) | - | 13 | - | |||
| Financial income, net | (2,231) | (74) | (836) | (408) | |||
| Un-realized foreign currency loss (gain) | 189 | 525 | (347) | 60 | |||
| (6,085) | 14,958 | (1,834) | 10,345 | ||||
| Changes in asset and liability items: | |||||||
| Decrease (increase) in trade receivables | 5,658 | (7,582) | (528) | (5,137) | |||
| Decrease (increase) in inventories | (906) | (721) | 782 | (113) | |||
| Decrease (increase) in other receivables | (894) | 364 | (696) | 221 | |||
| Increase (decrease) in trade payables and accrued expenses | (594) | 414 | 1,093 | 784 | |||
| Increase (decrease) in other payables | (928) | 281 | 311 | 2,107 | |||
| 2,336 | (7,244) | 962 | (2,138) | ||||
| Net cash used in operating activities | (10,465) | (11,885) | (2,615) | 750 | |||
| MediWound, Ltd. | |||||||
| Audited Condensed Consolidated Statements of Cash Flows | |||||||
| U.S. dollars in thousands | |||||||
| Cash Flows from Investing Activities: | |||||||
| Purchase of property and equipment | (6,464) | (555) | (2,209) | (174) | |||
| Interest received | 1,947 | 74 | 722 | 71 | |||
| Proceeds from (Investment in) short term bank deposits, net | (29,804) | - | 6,515 | 2,499 | |||
| Net cash used in investing activities | (34,321) | (481) | 5,028 | 2,396 | |||
| Cash Flows from Financing Activities: | |||||||
| Repayment of lease liabilities | (778) | (701) | (204) | (170) | |||
| Proceeds from issuance of shares and warrants, net | 24,909 | 38,390 | - | 16,475 | |||
| Repayments of IIA grants, net | (380) | (258) | - | - | |||
| Repayment of liabilities in respect of TEVA | (834) | (1,667) | - | (417) | |||
| Net cash provided by (used in) financing activities | 22,917 | 35,764 | (204) | 15,588 | |||
| Exchange rate differences on cash and cash equivalent balances | (160) | (549) | 378 | (44) | |||
| Increase (decrease) in cash and cash equivalents | (22,029) | 22,849 | 2,587 | 18,990 | |||
| Balance of cash and cash equivalents at the beginning of the period | 33,895 | 11,046 | 9,279 | 14,905 | |||
| Balance of cash and cash equivalents at the end of the period | 11,866 | 33,895 | 11,866 | 33,895 | |||
| MediWound, Ltd. | |||||||
| Adjusted EBITDA | |||||||
| U.S. dollars in thousands | |||||||
| Twelve months ended | Three months ended | ||||||
| Dec 31, | Dec 31, | ||||||
| 2023 | 2022 | 2023 | 2022 | ||||
| Net loss | (6,716) | (19,599) | (1,743) | (7,457) | |||
| Adjustments: | |||||||
| Financial income (expenses), net | 8,759 | (11,176) | 2,271 | (9,515) | |||
| Other (Income) expenses, net | 211 | (684) | (13) | (375) | |||
| Taxes on income | (185) | (78) | (120) | (65) | |||
| Depreciation and amortization | (1,303) | (1,272) | (346) | (284) | |||
| Share-based compensation expenses | (1,940) | (1,946) | (298) | (642) | |||
| Total adjustments | 5,542 | (15,156) | 1,494 | (10,881) | |||
| Adjusted EBITDA | (12,258) | (4,443) | (3,237) | 3,424 | |||
FAQ
What was MediWound's revenue in 2023 and the projected revenue for 2024?
Where was NexoBrid® commercially launched?
When is EscharEx® expected to begin Phase III?
What is the cash runway of MediWound through profitability?
What kind of funding did MediWound receive from the U.S. Department of Defense?
