Innovative Burn Care: MediWound Bags Additional DoD Grant For NexoBrid Development
Portfolio Pulse from Shivani Kumaresan
MediWound Ltd (NASDAQ:MDWD) received an additional $6.7 million in non-dilutive funding from the U.S. Department of Defense to develop NexoBrid, a non-surgical burn treatment. The total project budget is $14.4 million, aimed at creating a temperature-stable formulation of NexoBrid. Vericel Corporation (NASDAQ:VCEL) has the exclusive license for NexoBrid in North America. MDWD's stock price rose by 2.02% to $10.41 following the announcement.
December 28, 2023 | 4:54 pm
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POSITIVE IMPACT
MediWound Ltd received additional DoD funding for NexoBrid development, which is expected to enhance the product's development and production, positively impacting the company's financial position and project progress.
The additional funding from the DoD is a significant financial boost for MediWound, directly supporting the development of NexoBrid. This non-dilutive funding is likely to be viewed positively by investors, as it does not affect current shareholders' equity and shows confidence in the company's project by a government entity. The positive stock price movement reflects the market's favorable reaction to the news.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Vericel Corporation holds the exclusive North American license for NexoBrid, developed by MediWound. The additional funding for NexoBrid's development by the DoD may indirectly benefit Vericel by potentially bringing an improved product to market.
Although the funding was awarded directly to MediWound, Vericel Corporation, which holds the commercial and development rights to NexoBrid in North America, may experience indirect benefits from the enhanced development and potential success of the product. This could lead to future revenue growth for Vericel if NexoBrid becomes a successful treatment option in the market.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70