MediWound Ltd Announces Third Quarter 2024 Financial Results
Intellectia.AI2024-11-26
MediWound Ltd. Announces Third Quarter 2024 Financial Results
Overview:
MediWound Ltd. (NASDAQ: MDWD) reported its financial results for the third quarter ended September 30, 2024. The company is a leader in enzymatic therapeutics for tissue repair.
Key Financial Metrics:
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | $4.4 million | $4.8 million | -8.3% | $6.01 million |
| Gross Profit | $0.7 million | $0.9 million | -22.2% | Not provided |
| R&D Expenses | $2.5 million | $1.5 million | +66.7% | Not provided |
| SG&A Expenses | $3.2 million | $2.6 million | +23.1% | Not provided |
| Operating Loss | $5.1 million | $3.0 million | +70% | Not provided |
| Net Loss | $10.3 million | $2.2 million | +368.2% | $-0.44 per share |
| EPS | $-0.98 | $-0.24 | +308.3% | Not provided |
Interpretation:
MediWound experienced a decline in revenue for Q3 2024, primarily due to reduced BARDA development services. The significant rise in R&D and SG&A expenses reflects increased investment activities, with the net loss substantially higher due to financial expenses from warrant revaluation.
Revenue Performance by Segment:
| Segment | Revenue Q3 2024 | Comparison to Guidance |
|---|---|---|
| NexoBrid | In line | Meets Expectations |
| BARDA Services | Lower | Below Expectations |
Interpretation:
Segment-wise, NexoBrid met revenue expectations, driven by high demand, whereas BARDA-related revenue was lower due to the scaling down of financial support post-FDA approvals.
Key Developments and Operational Highlights: - Completed state-of-the-art manufacturing facility; set for full operation by end of 2025. - FDA approval received for NexoBrid's pediatric application in the U.S. - Upcoming Phase 3 trial for EscharEx to address the $2 billion VLU market. - Received €16.25 million EIC funding for diabetic foot ulcer program.
Executive Commentary:
CEO Ofer Gonen highlighted the FDA approval as a major milestone, with the expansion in manufacturing capabilities positioning the company to meet growing demands. The upcoming studies and strategic collaborations indicate MediWound's commitment to market expansion and therapeutic advancement.
Forward Guidance:
The company adjusted its revenue expectations for 2024 to $20 million, down from previous guidance of $24 million, influenced by delays in U.S. Department of Defense projects and other factors.
Stock Price Movement:
Following the earnings release, MediWound's stock price increased by approximately 5.16%.
In conclusion, while facing financial challenges, MediWound continues to achieve significant operational milestones and strategic partnerships, paving the way for future growth and potential market leadership in enzymatic therapeutics.
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