Israeli biopharmaceutical company MediWound (Nasdaq: MDWD), which has developed products for treatment of burns and wounds, has announced that it has raised $25 million in a private placement led by Swedish company Mölnlycke Health Care, an international leader in the field of treating wounds.
Over the past few weeks, MediWound's share price has risen 40% on rumors of the company's sale to US firm Solventum (NYSE: SOLV), and at the end of trading yesterday MediWound had a market cap of $196 million. The share price of Clal Biotechnology (TASE: CBI) is down 13% today and MediWound's share price opened today down 3% on Wall Street.
Israeli investment house Yelin Lapidot also participated in the private placement at a price of $17.20 per share, a 19% discount on the share price this morning before the announcement of the fund raising.
All options open
The private placement now suggests that an acquisition of MediWound is not expected anytime soon, but it does not rule out the possibility of such a deal in the future. As part of the capital raising, Mölnlycke does not receive marketing rights for MediWound's products, so everything is open as far as the Israeli biopharmaceutical company is concerned.
However, the agreement signed between the companies in the private placement does include rights to participate in any future acquisition procedure. In addition, the companies' CEOs will meet regularly, and there is a scientific cooperation agreement between the companies was signed last year regarding the Phase III trial of MediWound's wound care product.
In order not to close options, the agreement limits Mölnlycke's holding in the company to 9.99%, and requires it to vote in favor of a future acquisition deal with another company, if there is one.
MediWound CEO Ofer Gonen said, "Mölnlycke is a company specializing in wound healing, which wants to take the patient from prevention with products such as pressure socks, to the treatment phase, healing if possible, or quality of life with the wound. What they lack, like every other company in the field in the world, is the fresh product."
Published by Globes, Israel business news - en.globes.co.il - on July 15, 2024.
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