MediWound Reports Second Quarter 2025 Financial Results and Provides Corporate Update

Rhea-AI Summary

MediWound (NASDAQ: MDWD), a leader in enzymatic therapeutics for tissue repair, reported Q2 2025 financial results with revenue of $5.7 million, up 43% from the previous quarter. The company highlighted progress in its VALUE Phase III trial of EscharEx® for venous leg ulcers and established new strategic partnerships with Essity and Convatec.

Key developments include NexoBrid®'s 52% year-over-year U.S. revenue growth and ongoing manufacturing expansion expected to increase production capacity six-fold by year-end 2025. The company received an additional $3.6 million in DoD funding for NexoBrid development. Financial results showed a net loss of $13.3 million, with cash reserves of $32.9 million as of June 30, 2025.

[ "Revenue increased 43% quarter-over-quarter to $5.7 million", "NexoBrid U.S. sales grew 52% year-over-year", "Secured $3.6 million additional DoD funding for NexoBrid development", "Manufacturing capacity expansion to increase NexoBrid production six-fold", "New strategic partnerships established with Essity and Convatec", "Gross margin improved to 23.5% from 8.8% year-over-year" ]

Positive

• None.

Negative

• Net loss increased to $13.3 million from $6.3 million year-over-year
• Operating loss widened to $5.7 million from $4.5 million year-over-year
• Cash position decreased to $32.9 million from $43.6 million at year-end 2024
• Research and development expenses nearly doubled to $3.5 million

Insights

Biotech Financial Analyst

MediWound shows 43% QoQ revenue growth but widens losses as it invests in EscharEx Phase III trials and manufacturing expansion.

MediWound's Q2 results present a mixed financial picture with encouraging revenue growth but significant operational losses. The company reported $5.7 million in quarterly revenue, representing a 43% increase from the previous quarter, though the year-over-year growth was more modest at 12% compared to Q2 2024. This revenue improvement was paired with substantial gross margin expansion, reaching 23.5% versus 8.8% in the prior-year period, indicating a more favorable product mix.

However, the company's investments in R&D have nearly doubled year-over-year to $3.5 million, primarily directed toward the VALUE Phase III trial for EscharEx in venous leg ulcers. This aggressive clinical spending has pushed the operating loss to $5.7 million and contributed to a net loss of $13.3 million ($1.23 per share). The substantial difference between operating and net losses stems from $6.6 million in non-cash financial expenses related to warrant revaluation.

Cash burn remains a critical metric to monitor, with $11.9 million used in the first half of 2025, reducing the cash position to $32.9 million from $43.6 million at year-end 2024. At the current burn rate, the company has approximately 5-6 quarters of runway, though the $2.5 million in recent warrant exercises provides some additional cushion.

NexoBrid's commercial trajectory appears promising, with Vericel reporting 52% year-over-year growth in the U.S. market. The six-fold manufacturing capacity expansion remains on schedule for completion by year-end 2025, positioning the company to meet anticipated demand growth. Meanwhile, the additional $3.6 million in Department of Defense funding for a room temperature-stable NexoBrid formulation represents valuable non-dilutive capital.

The extensive clinical partnerships for EscharEx with wound care leaders Essity and Convatec, joining existing collaborations with Solventum, Mölnlycke, Kerecis, and MIMEDX, demonstrate industry recognition of the product's potential. However, with the interim assessment for the VALUE trial not planned until mid-2026, investors face a significant waiting period before meaningful clinical validation.

Medical Device Specialist

MediWound strengthens market position with major partnerships and manufacturing expansion despite financial losses during clinical development phase.

The strategic positioning of MediWound's enzymatic debridement platform is taking significant strides forward in the competitive wound care landscape. The company has now secured partnerships with all major global wound care companies after adding Essity and Convatec to its collaboration roster. These aren't merely nominal partnerships – they involve the integration of complementary best-in-class products like JOBST® compression therapy for the venous leg ulcer trial and AQUACEL® advanced dressings for the planned diabetic foot ulcer study.

This level of industry collaboration is unusual in the medical device sector and suggests substantial confidence in EscharEx's mechanism of action and commercial potential from companies that dominate the wound care market. The collaborations create potential for streamlined adoption pathways if EscharEx receives approval, as these partners already have established relationships with the wound care centers that would be primary users of the product.

For NexoBrid, the six-fold manufacturing capacity expansion represents prudent infrastructure development that aligns with the 52% year-over-year growth reported by Vericel. The additional Department of Defense funding for a room temperature-stable formulation addresses a significant practical limitation of the current product, which requires cold chain storage. Eliminating this requirement would substantially improve the product's utility in both military and civilian emergency settings.

The post-hoc analysis publication in Advances in Wound Care delivers important clinical validation by demonstrating that effective wound bed preparation – EscharEx's primary mechanism – is a key predictor of healing outcomes in venous leg ulcers. This scientific recognition strengthens the product's value proposition and provides supporting evidence for the ongoing Phase III trial design.

While the financial investment in clinical development is creating near-term losses, MediWound is executing a textbook strategy for a specialty medical technology company: building manufacturing infrastructure, establishing strategic partnerships, generating supporting clinical evidence, and securing non-dilutive funding to advance its technology platform toward significant market opportunities in chronic and acute wound care.

VALUE Phase III Trial of EscharEx^® in Venous Leg Ulcers Continues to Enroll Patients

NexoBrid^® Manufacturing Expansion on Track; Full Operational Capacity Expected by Year-End 2025

Additional Strategic Research Collaborations Established with Essity and Convatec

Second Quarter 2025 Revenue of $5.7 Million, Up 43% from Prior Quarter

Conference Call Today, August 14, 2025, at 8:30am Eastern Time

YAVNE, Israel, Aug. 14, 2025 (GLOBE NEWSWIRE) -- MediWound Ltd. (Nasdaq: MDWD), a global leader in next-generation enzymatic therapeutics for tissue repair, today announced financial results for the second quarter ended June 30, 2025, and provided a corporate update.

“We continue to execute across our clinical, commercial, and operational objectives,” said Ofer Gonen, Chief Executive Officer of MediWound. “The VALUE Phase III trial of EscharEx^® is actively recruiting patients, and with the addition of Convatec and Essity to our clinical partnerships, we are now collaborating with all relevant leading global wound care companies. In the U.S., NexoBrid^® is gaining commercial traction, and our manufacturing expansion remains on track to meet the anticipated growth in demand. The solid progress in the first half of 2025 reinforces our confidence in our long-term strategy and our commitment to value creation.

Second Quarter 2025 Highlights, Recent Developments, and Upcoming Milestones:

EscharEx^®

• Enrollment in the global VALUE Phase III study for the treatment of venous leg ulcers (VLUs) is ongoing. The trial aims to enroll 216 patients across 40 sites in the U.S. and Europe. Interim sample size assessment is planned for mid-2026, after 65% of patients complete treatment.
• Established new collaborations with Essity and Convatec to support EscharEx trials. The VALUE Phase III VLU trial now includes JOBST^®, a leading medical compression therapy brand, while the planned DFU trial will incorporate AQUACEL^®, a market-leading wound dressing. These partnerships complement the existing ones with Solventum, Mölnlycke, Kerecis, and MIMEDX, reflecting strong industry recognition of EscharEx’s clinical value and potential.
• Published a post-hoc analysis of new data from the EscharEx Phase II trial in Advances in Wound Care, a peer-reviewed journal, providing clinical evidence that wound bed preparation is a key predictor of healing in venous leg ulcers.

NexoBrid^®

• U.S. adoption continues to grow. Vericel, MediWound’s exclusive U.S. commercial partner, reported 52% year-over-year revenue growth for NexoBrid in the second quarter, supported by increases in both hospital unit orders and the number of ordering centers.
• Commissioning of MediWound’s expanded manufacturing facility—engineered to increase NexoBrid production capacity six-fold—remains on track, with full operational readiness anticipated by year-end 2025. Regulatory review will determine commercial availability timelines.
• As part of a BARDA-funded initiative, planning continues for future U.S.-based manufacturing to support global demand.
• Received an additional $3.6 million in funding from the U.S. Department of Defense (DoD) to advance development of a room temperature-stable formulation of NexoBrid. The supplemental funding will support expanded CMC activities, enhancement of in-house manufacturing capabilities, and initial preparations for a clinical trial.

Second Quarter 2025 Financial Highlights

• Revenue for the second quarter of 2025 increased to $5.7 million, compared to $5.1 million in the same period of 2024.
• Gross profit totaled $1.3 million, or 23.5% of total revenue, compared to $0.4 million, or 8.8% of total revenue, in the prior-year period. The margin improvement reflects a more favorable revenue mix.
• Research and development expenses were $3.5 million, compared to $1.9 million a year ago, driven by increased investment in the EscharEx VALUE Phase III trial and related clinical activities.        
• Selling, general and administrative expenses were $3.6 million, compared to $3.0 million in the second quarter of 2024, primarily due to higher share-based compensation expenses.
• Operating loss was $5.7 million, compared to $4.5 million in the same period last year.
• Net loss was $13.3 million, or $1.23 per share, compared to $6.3 million, or $0.68 per share, in the second quarter of 2024. The year-over-year increase was primarily driven by $6.6 million in non-cash financial expenses in the second quarter of 2025, related to the revaluation of warrants.
• Non-GAAP Adjusted EBITDA loss was $4.5 million, compared to a loss of $3.4 million in the prior-year quarter.

Year-to-Date 2025 Financial Highlights

• Revenue for the first half of 2025 was $9.7 million, compared to $10.0 million in the same period of 2024. The decrease primarily reflects lower BARDA-funded development services revenue as NexoBrid development nears completion.
• Gross profit totaled $2.1 million, or 21.5% of total revenue, compared to $1.1 million, or 10.5% of total revenue, in the first half of 2024. The margin improvement reflects a more favorable revenue mix.
• Research and development expenses were $6.4 million, compared to $3.4 million in the same period of 2024, reflecting increased investment in the EscharEx VALUE Phase III trial and related clinical activities.
• Selling, general and administrative expenses were $6.6 million, compared to $5.9 million in the first half of 2024, primarily due to higher share-based compensation expenses.
• Operating loss was $10.9 million, compared to $8.2 million in the same period of 2024.
• Net loss was $14.0 million, or $1.30 per share, compared to $16.0 million, or $1.73 per share, in the first half of 2024.
• Non-GAAP Adjusted EBITDA loss was $8.5 million, compared to a loss of $6.2 million in the same period of 2024.

Balance Sheet Highlights

As of June 30, 2025, MediWound had cash, cash equivalents, and short-term deposits of $32.9 million, compared to $43.6 million as of December 31, 2024. During the first half of 2025, the Company used $11.9 million to fund operations, including $2.3 million in capital expenditures primarily related to manufacturing scale-up. MediWound received $0.7 million in proceeds from the exercise of Series A warrants during the quarter, with an additional $1.8 million received after quarter-end.

Conference Call and Webcast

MediWound management will host a conference call for investors on Thursday, August 14, 2025, beginning at 8:30 a.m., Eastern Time to discuss these results and answer questions. Shareholders and other interested parties may participate in the conference call by dialing 1-844-676-8833 (in the U.S.), 1-80-921-2373 (Israel), or 1-412-634-6869 (outside the U.S. & Israel). The call will be available via webcast by clicking HERE or on the Events & Presentations page of Company’s website.

A replay of the call will be available on the Company’s website at www.mediwound.com

Non-IFRS Financial Measures

To supplement consolidated financial statements prepared and presented in accordance with IFRS, the Company has provided a supplementary non-IFRS measure to consider in evaluating the Company’s performance. Management uses Adjusted EBITDA, which it defines as earnings before interest, taxes, depreciation and amortization, impairment, one-time expenses, restructuring and share-based compensation expenses.

Although Adjusted EBITDA is not a measure of performance or liquidity calculated in accordance with IFRS, we believe the non-IFRS financial measures we present provide meaningful supplemental information regarding our operating results primarily because they exclude certain non-cash charges or items that we do not believe are reflective of our ongoing operating results when budgeting, planning and forecasting and determining compensation, and when assessing the performance of our business with our senior management. However, investors should not consider these measures in isolation or as substitutes for operating income, cash flows from operating activities or any other measure for determining the Company’s operating performance or liquidity that is calculated in accordance with IFRS. In addition, because Adjusted EBITDA is not calculated in accordance with IFRS, it may not necessarily be comparable to similarly titled measures employed by other companies. The non-IFRS measures included in this press release have been reconciled to the IFRS results in the tables below.

About MediWound

MediWound Ltd. (Nasdaq: MDWD) is a global biotechnology company focused on developing and commercializing enzymatic therapies for non-surgical tissue repair. The company’s FDA-approved biologic, NexoBrid^®, is indicated for the enzymatic removal of eschar in thermal burns and is marketed in the U.S., European Union, Japan, and other international markets. MediWound is also advancing EscharEx^®, a late-stage investigational therapy for the debridement of chronic wounds. EscharEx has demonstrated clinical advantages over the leading enzymatic debridement product and targets a substantial global market opportunity.

For more information visit www.mediwound.com and follow us on LinkedIn.

Cautionary Note Regarding Forward-Looking Statements

MediWound cautions you that all statements other than statements of historical fact included in this press release that address activities, events, or developments that we expect, believe, or anticipate will or may occur in the future are forward-looking statements. Although we believe that we have a reasonable basis for the forward-looking statements contained herein, they are based on current expectations about future events affecting us and are subject to risks, assumptions, uncertainties, and factors, all of which are difficult to predict and many of which are beyond our control. Actual results may differ materially from those expressed or implied by the forward-looking statements in this press release. These statements are often, but are not always, made through the use of words or phrases such as “anticipates,” “intends,” “estimates,” “plans,” “expects,” “continues,” “believe,” “guidance,” “outlook,” “target,” “future,” “potential,” “goals” and similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” or similar expressions.

Specifically, this press release contains forward-looking statements concerning the anticipated progress, development, study design, expected data timing, objectives anticipated timelines, expectations and commercial potential of our products and product candidates, including EscharEx^® and NexoBrid^®. Among the factors that may cause results to be materially different from those stated herein are the inherent uncertainties associated with the uncertain, lengthy and expensive nature of the product development process; the timing and conduct of our studies of our products and product candidates, including the timing, progress and results of current and future clinical studies, and our research and development programs; the approval of regulatory submission by the FDA, the European Medicines Agency or by any other regulatory authority, our ability to obtain marketing approval of our products and product candidates in the U.S. or other markets; the clinical utility, potential advantages and timing or likelihood of regulatory filings and approvals of our products and products; our expectations regarding future growth, including our ability to develop new products; market acceptance of our products and product candidates; our ability to maintain adequate protection of our intellectual property; competition risks; the need for additional financing; the impact of government laws and regulations and the impact of the current global macroeconomic climate on our ability to source supplies for our operations or our ability or capacity to manufacture, sell and support the use of our products and product candidates in the future.

These and other significant factors are discussed in greater detail in MediWound’s annual report on Form 20-F for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) on March 19, 2025 and Quarterly Reports on Form 6-K and other filings with the SEC from time-to-time. These forward-looking statements reflect MediWound’s current views as of the date hereof and MediWound undertakes, and specifically disclaims, any obligation to update any of these forward-looking statements to reflect a change in their respective views or events or circumstances that occur after the date of this release except as required by law.

MediWound Contacts:		Media Contact:
Hani Luxenburg	Daniel Ferry	Ellie Hanson
Chief Financial Officer	Managing Director	FINN Partners for MediWound
MediWound Ltd.	LifeSci Advisors, LLC	ellie.hanson@finnpartners.com
ir@mediwound.com	daniel@lifesciadvisors.com	+1-929-588-2008

MediWound, Ltd. Unaudited Condensed Consolidated Statements of Financial Position U.S. dollars in thousands
	June 30,				December 31,
	2025		2024		2024
CURRENT ASSTS:
Cash and cash equivalents and short-term deposits	32,436		29,215		43,161
Trade and other receivable	6,800		4,888		6,310
Inventories	3,843		3,210		2,692
Total current assets	43,079		37,313		52,163
NON-CURRENT ASSETS:
Other receivables and long-term restricted bank deposits	490		691		439
Property, plant and equipment	15,724		12,308		14,132
Right of use assets	7,642		6,852		6,663
Intangible assets	66		132		99
Total non-current assets	23,922		19,983		21,333
Total assets	67,001		57,296		73,496
CURRENT LIABILITIES:
Current maturities of long-term liabilities	822		1,496		612
Warrants	18,992		14,902		17,092
Trade payables and accrued expenses	5,880		2,745		5,281
Other payables	3,377		3,468		3,556
Total current liabilities	29,071		22,611		26,541
NON- CURRENT LIABILITIES:
Grants received in advance	758		-		736
Liabilities in respect of IIA grants	8,504		8,009		8,149
Liabilities in respect of TEVA	-		1,962		-
Lease liabilities	8,070		6,355		6,513
Severance pay liability, net	479		490		404
Total non-current liabilities	17,811		16,816		15,802
Total liabilities	46,882		39,427		42,343
Shareholders' equity	20,119		17,869		31,153
Total liabilities and equity	67,001		57,296		73,496

MediWound, Ltd. Unaudited Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income or Loss U.S. dollars in thousands (except of share and per share data)
	Six months ended								Three months ended							Year ended
	June 30,								June 30,							December 31,
	2025			2024						2025		2024				2024
Total revenues	9,663			10,027						5,708		5,063				20,222
Cost of revenues	7,583			8,973						4,366		4,616				17,588
Gross profit	2,080			1,054						1,342		447				2,634
Research and development	6,377			3,368						3,491		1,898				8,878
Selling and marketing	2,749			2,403						1,462		1,224				4,936
General and administrative	3,891			3,501						2,105		1,809				8,202
Other expenses	4			-						-		-				18
Operating loss	(10,941)			(8,218)						(5,716)		(4,484)				(19,400)
Financing expenses, net	(3,060)			(7,794)						(7,564)		(1,823)				(10,763)
Taxes on income	(43)			(22)						(38)		2				(61)
Net loss	(14,044)			(16,034)						(13,318)		(6,305)				(30,224)
Foreign currency translation adjustments	(10)			10						(11)		2				7
Total comprehensive loss	(14,054)			(16,024)						(13,329)		(6,303)				(30,217)
Basic and diluted net loss per share	(1.30)			(1.73)						(1.23)		(0.68)				(3.03)
Number of shares used in calculating basic and diluted loss per share	10,816,990			9,256,862						10,835,251		9,279,370				9,959,723

MediWound Ltd. Unaudited Condensed Consolidated Statements of Cash Flows U.S. dollars in thousands
		Six months ended						Three months ended						Year Ended
		June 30,						June 30,						December 31,
		2025			2024			2025			2024			2024
Cash flows from operating activities:
Net loss		(14,044	)		(16,034	)		(13,318	)		(6,305	)		(30,224	)
Adjustments to reconcile net loss to net cash used in operating activities:
Adjustments to profit and loss items:
Depreciation and amortization		752			725			394			357			1,483
Share-based compensation		1,706			1,270			862			758			3,138
Revaluation of warrants accounted at fair value		2,377			8,007			6,647			1,927			10,704
Revaluation of liabilities in respect of IIA grants		446			470			203			237			752
Revaluation of liabilities in respect of TEVA		-			206			-			99			770
Financing (income) expenses and exchange differences of lease liability		943			17			938			(11	)		487
Increase (decrease) in severance pay liability, net		75			48			48			13			(30	)
Other expenses		4			-			-			-			18
Financial income, net		(942	)		(918	)		(424	)		(405	)		(2,039	)
Unrealized foreign currency loss (gain)		(21	)		78			(6	)		11			47
		5,340			9,903			8,662			2,986			15,330
Changes in asset and liability items:
Decrease (increase) in trade receivables		(217	)		753			(1,671	)		876			(1,141	)
Decrease (increase) in inventories		(1,151	)		(345	)		(263	)		103			187
Decrease (increase) in other receivables		(341	)		(574	)		37			(459	)		120
Increase (decrease) in trade payables and accrued expenses		691			(1,900	)		794			(530	)		406
Increase in grants received in advance		-			-			-			-			1,181
Increase (decrease) in other payables		(144	)		(34	)		3			(294	)		517
		(1,162	)		(2,100	)		(1,100	)		(304	)		1,270
Net cash used in operating activities		(9,866	)		(8,231	)		(5,756	)		(3,623	)		(13,624	)

MediWound Ltd. Unaudited Condensed Consolidated Statements of Cash Flows U.S. dollars in thousands
	Six months ended						Three months ended						Year Ended
	June 30,						June 30,						December 31,
	2025			2024			2025			2024			2024
Cash flows from investing activities:
Purchase of property and equipment	(2,008	)		(4,275	)		(1,049	)		(3,016	)		(6,273	)
Interest received	585			1,127			319			522			2,252
Proceeds from (investment in) short-term bank deposits, net	2,985			4,209			5,635			5,339			(4,376	)
Net cash provided by (used in) investing activities	1,562			1,061			4,905			2,845			(8,397	)
Cash flows from financing activities:
Repayment of leases liabilities	(537	)		(458	)		(289	)		(214	)		(928	)
Proceeds from exercise of warrants and share options	838			610			838			111			1,210
Proceeds from issuance of shares	-			-			-			-			22,165
Repayment of IIA grants	(114	)		(120	)		-			-			(219	)
Repayment of liabilities in respect of TEVA	-			(834	)		-			-			(2,834	)
Net cash provided by (used in) financing activities	187			(802	)		549			(103	)		19,394
Exchange rate differences on cash and cash equivalent balances	21			(104	)		2			(15	)		(84	)
Decrease in cash and cash equivalents	(8,096	)		(8,076	)		(300	)		(896	)		(2,711	)
Balance of cash and cash equivalents at the beginning of the period	9,155			11,866			1,359			4,686			11,866
Balance of cash and cash equivalents at the end of the period	1,059			3,790			1,059			3,790			9,155

MediWound Ltd. Adjusted EBITDA U.S. dollars in thousands
	Six months ended						Three months ended						Year Ended
	June 30,						June 30,						December 31,
	2025			2024			2025			2024			2024
Net loss	(14,044	)		(16,034	)		(13,318	)		(6,305	)		(30,224	)
Adjustments:
Financing expenses, net	(3,060	)		(7,794	)		(7,564	)		(1,823	)		(10,763	)
Other expenses, net	(4	)		-			-			-			(18	)
Taxes on income	(43	)		(22	)		(38	)		2			(61	)
Depreciation and amortization	(752	)		(725	)		(394	)		(357	)		(1,483	)
Share-based compensation expenses	(1,706	)		(1,270	)		(862	)		(758	)		(3,138	)
Total adjustments	(5,565	)		(9,811	)		(8,858	)		(2,936	)		(15,463	)
Adjusted EBITDA	(8,479	)		(6,223	)		(4,460	)		(3,369	)		(14,761	)

FAQ

What were MediWound's (MDWD) Q2 2025 earnings results?

MediWound reported Q2 2025 revenue of $5.7 million, up 43% from prior quarter, with a net loss of $13.3 million or $1.23 per share. Gross margin improved to 23.5% from 8.8% year-over-year.

How is the EscharEx Phase III VALUE trial progressing?

The VALUE Phase III trial is actively enrolling patients, targeting 216 participants across 40 sites in the U.S. and Europe. An interim sample size assessment is planned for mid-2026 after 65% of patients complete treatment.

What is the status of MediWound's NexoBrid manufacturing expansion?

MediWound's manufacturing expansion is on track for full operational readiness by year-end 2025, designed to increase NexoBrid production capacity six-fold, pending regulatory review.

What new partnerships did MediWound announce in Q2 2025?

MediWound established new collaborations with Essity and Convatec, incorporating JOBST® compression therapy for the VALUE Phase III VLU trial and AQUACEL® wound dressing for the planned DFU trial.

How much cash does MediWound (MDWD) have as of Q2 2025?

As of June 30, 2025, MediWound had $32.9 million in cash, cash equivalents, and short-term deposits, compared to $43.6 million at the end of 2024.