H.C. Wainwright lifts MediWound stock target to $31, maintains buy

Published 22/05/2025, 12:46
© Eran Lavie, MediWound  PR

On Thursday, H.C. Wainwright analyst Swayampakula Ramakanth increased the price target for MediWound Ltd (NASDAQ:MDWD) shares to $31 from $25, while keeping a Buy rating on the stock. Currently trading at $19.89 with a market capitalization of $215 million, the company has attracted strong analyst interest, with targets ranging from $25 to $39. According to InvestingPro data, the stock has shown robust momentum with a 21% gain over the past six months. The adjustment follows MediWound’s recent announcement of its first-quarter financial results for 2025 and a conference call providing updates on its clinical programs.

MediWound is progressing with its 216-patient Phase 3 VALUE study, which is assessing the effectiveness and safety of EscharEx, a product aimed at debriding venous leg ulcers (VLUs), compared to a placebo. InvestingPro analysis reveals the company maintains a healthy balance sheet with more cash than debt and a current ratio of 1.97x, providing financial flexibility for its clinical programs. As reported by the company’s management, most U.S. centers participating in the study are operational, and European centers are anticipated to commence during the third quarter of 2025.

The VALUE study is on track, with expectations to reach 65% enrollment, which will trigger an interim analysis in mid-2026. The final data from the study is projected to be available in the first half of 2027. Based on these timelines, analysts at H.C. Wainwright foresee EscharEx potentially entering the U.S. market in the third quarter of 2028.

Additionally, MediWound is preparing to start a 45-patient Phase 2 study in the second half of 2025. This study will compare EscharEx against collagenase products, which include SANTYL and IRUXOL, for the treatment of VLUs. Furthermore, the company plans to initiate a Phase 2/3 study for evaluating EscharEx in diabetic foot ulcer (DFU) patients in 2026.

The analyst’s optimistic outlook is supported by the progress of MediWound’s clinical programs and the potential market entry of their product EscharEx. While trading at a relatively high Price/Book ratio of 6.9x, the company’s strong price momentum score of 4.22 out of 5 on InvestingPro suggests positive market sentiment. This has led to the reiterated Buy rating and the increased price target for MediWound’s stock. Subscribers to InvestingPro can access 6 additional ProTips and a comprehensive Pro Research Report for deeper insights into MediWound’s valuation and growth prospects.

In other recent news, MediWound Ltd reported its fourth-quarter 2024 earnings, exceeding analysts’ expectations. The company achieved an earnings per share (EPS) of -$0.36, surpassing the forecasted -$0.56, and reported a revenue of $5.84 million, slightly above the anticipated $5.83 million. For the full year 2024, MediWound’s total revenue increased to $20.2 million from $18.7 million in 2023, reflecting a strategic focus on product development and partnerships. However, the company faced a net loss of $30.2 million, or $3.03 per share, indicating ongoing challenges in achieving profitability.

In other developments, MediWound announced promising results from a post hoc analysis of its EscharEx product, which showed faster and more complete debridement of venous leg ulcers compared to the current FDA-approved treatment, SANTYL. The analysis, derived from Phase II ChronEx trial data, highlighted EscharEx’s potential clinical advantages, with a global Phase III study currently underway. Additionally, MediWound’s existing product, NexoBrid, continues to be marketed for eschar removal in thermal burns across various international markets. Analyst firms have not provided recent upgrades or downgrades for MediWound, but the company’s ongoing clinical trials and strategic collaborations underscore its commitment to innovative wound care solutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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