MediWound slides on proposed stock offering

Daniel Grizelj/DigitalVision via Getty Images

• MediWound (NASDAQ:MDWD), a commercial-stage pharmaceutical company focused on tissue repair and regeneration, has lost ~29% in the post-market Wednesday after announcing a proposed underwritten public offering of ordinary shares.
• A 30-day option allowing underwriters to purchase up to an additional 15% of ordinary shares on offer is also under consideration. Oppenheimer acts as the sole book-running manager for the stock issuance.
• The offering is subject to market and other closing conditions, the company said, adding that there is no assurance whether or when it will be completed or regarding the terms and actual size of the offering.

• In terms of current ratings for the stock, MediWound (MDWD) has earned six Buy recommendations on Wall Street with no Hold or Sell ratings.

Comments

[Epicontact2]

The gang selling the offering only cares about it's take. I suspect naive management got smoke blown up their derrieres.

[Veni Vidi Vici]

The timing of this offering looks quite suspect given the upcoming multiple clinical data releases and the recently announced $9 million BARDA and $1.7 million DoD awards .

[trader201102]

@Veni Vidi Vici
If that’s the case, then we can assume one of the two scenarios….

1. The trial data is negative, leading to what management believes will be further decay in the share price.

2. Management doesn’t know when to raise cash.

Raising cash at these levels is punishing to current shareholders.

[Frank Thomas in Florida]

Is it possible Mediwound is doing secondary b/c float is too little? And the larger float is needed to attract big pharma? Just can’t think of another reason to be doing a secondary.

[Frank Thomas in Florida]

On the issue of not receiving FDA approval for Israeli plant... can’t Mediwound move production to a US or Indian-based plant which already has FDA approval?

[Plan Man]

@Frank Thomas in Florida this is likely not a product that will need extra production facilities and buy a facility to get certified would take a long time and take additional money they do not have.

[Frank Thomas in Florida]

I really hope Mediwound doesn’t go thru w/ the secondary. Mediwound has been saying they have sufficient funds to bring its products to market. And they do. So why offer shares when share price so drepressed? Hope the offer doesn’t happen

[matttrakker]

@Frank Thomas in Florida the fda can’t visit their factory in Israel to approve. This has been in the cards for a year. I sold out waiting for this.

[MikeFromNZ]

@Frank Thomas in Florida Not only that but they just got $10.7M from BARDA:

ir.mediwound.com/...

ir.mediwound.com/...

[dovik017]

@MikeFromNZ As well as a $1.7 million research project

[Epicontact2]

Bring in management that can grow the company profitably.