Craig-Hallum sets $39 target on MediWound stock with buy rating

Published 28/02/2025, 15:58
© Eran Lavie, MediWound  PR

On Friday, Craig-Hallum initiated coverage on MediWound Ltd (NASDAQ:MDWD), a company specializing in wound care and biotechnology, with a Buy rating and a price target of $39.00. Currently trading at $16.47 with a market capitalization of $180 million, InvestingPro data shows the stock has significant upside potential based on analyst consensus targets ranging from $25 to $36. The coverage highlights the company’s clinical and commercial assets, with a particular focus on the potential of its enzymatic debridement products for the treatment of chronic diabetic wounds.

MediWound’s product NexoBrid, which has shown significant efficacy in the debridement of burns, is seen as a strong proof of concept for EscharEx, another of the company’s products targeting diabetic wound care. With a 93% eschar removal rate in phase 3 trials, NexoBrid’s success is viewed as a positive indicator for EscharEx’s prospects in a market with an estimated total addressable market (TAM) of $2 billion in the United States alone. According to InvestingPro analysis, the company maintains strong financial health with more cash than debt and a healthy current ratio of 2.11, providing stability for its development programs.

EscharEx, which utilizes the same active pharmaceutical ingredient (API) as NexoBrid, has demonstrated impressive results in phase 2 studies for venous leg ulcers (VLUs), achieving 63% complete debridement at two weeks. This compares favorably to a 30% rate for placebo and 0% for Smith & Nephew’s Santyl in patients who received standard of care. The analyst believes that EscharEx is poised to capture a majority market share from Santyl, a product that was acquired for approximately $800 million in 2012 and has a $350 million-plus franchise in the U.S.

The report also notes the initiation of MediWound’s phase 3 VALUE trial in VLUs, with enrollment expected to begin shortly. The analyst expresses confidence in the trial, suggesting it is more derisked than the market perceives. Interim data from this trial is expected in mid-2026, with top-line data anticipated by the end of that year.

With the potential to expand the enzymatic debridement market from 18% to approximately 30%, EscharEx is projected to achieve peak global sales of around $550 million or more. This growth is expected to significantly enhance shareholder value, justifying the optimistic outlook and $39 price target set by Craig-Hallum for MediWound stock. With the next earnings report due on March 13, 2025, investors can access comprehensive analysis and 7 additional key insights through InvestingPro’s detailed research report, part of its coverage of over 1,400 US stocks.

In other recent news, MediWound Ltd. has commenced a pivotal Phase III trial for its wound therapy product, EscharEx®, targeting venous leg ulcers. The global study, known as the VALUE trial, will assess the safety and effectiveness of EscharEx in debridement and wound closure across 40 sites in the United States and Europe. The trial aims to enroll 216 patients, with a primary focus on complete debridement and wound closure. An interim analysis is anticipated by mid-2026. In addition, MediWound is planning a head-to-head Phase II study comparing EscharEx to collagenase, as well as a Phase II/III trial for diabetic foot ulcers set to begin in 2026.

Meanwhile, Enzon Pharmaceuticals has announced the appointment of Stephen T. Wills as a new board member, expanding the board to four members. Wills, with extensive experience from roles at Palatin Technologies (NYSE:PTN) and other companies, will serve until the next annual stockholders’ meeting. Enzon has also formed a special committee to evaluate a proposal from Viskase Companies, Inc. The committee, which includes Wills, has the authority to negotiate and make decisions regarding the proposal, although no terms have been received and there is no guarantee of a transaction.

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