MediWound raises $25m, acquisition still possible

Israeli biopharmaceutical company Midwind MDWD (Nasdaq: MDWD), a developer of products for the treatment of burns and wounds, announced that it has raised $25 million in a private placement led by Swedish company Mölnlycke Health Care, a global leader in wound care.

Over the past few weeks, MediWound’s stock price has surged 40% on rumors of the company being sold to Solventum (NYSE: SOLV), and at the close of trading yesterday, MediWound’s market cap was $196 million. Clal Biotechnology (TASE: CBI) shares are down 13% today, and MediWound’s stock price opened 3% lower on Wall Street today.

Israeli investment firm Yellen Lapidot also participated in the private placement at $17.20 per share, a 19% discount to the stock price this morning before the fundraising was announced.

All options are open

The private placement now suggests that the MediWound acquisition is not expected to happen anytime soon, but it does not rule out the possibility of such a deal in the future. As part of the capital raising, Mölnlycke does not receive marketing rights to MediWound’s products, so everything is open as far as the Israeli biopharmaceutical company is concerned.

However, the agreement signed between the companies in the private placement includes the right to participate in any future acquisitions. In addition, the CEOs of the companies will meet regularly, and there is a scientific cooperation agreement between the companies signed last year regarding the Phase III trial of MediWound’s wound care product.

In order not to close out the options, the agreement limits Molnlycke’s stake in the company to 9.99%, and requires it to vote in favor of a future acquisition deal with another company, if there is one.

“Mölnlycke is a wound healing company that wants to move the patient from prevention with products like compression stockings to treatment, and if possible healing, or quality of life with the wound,” said MediWound CEO Ofer Gonen. “What they lack, like every other company in this field in the world, is a fresh product.”

This article was published in Globes, Israeli Business News – en.globes.co.il – on July 15, 2024.

© Copyright Globes Publisher Itonut (1983) Ltd., 2024.