In the coming weeks, several Israeli life sciences companies will examine whether the Nasdaq primary market is still hot. The largest offering will apparently be made by burn and wound treatment company MediWound Ltd., controlled by Clal Biotechnology Industries Ltd. (TASE: CBI) with a 64% stake. On Sunday, MediWound announced that it had filed a draft prospectus for an offering on Nasdaq.
MediWound hopes to raise $100 million at a company value of $400 million, before money. The underwriters are Credit Suisse, Jefferies, and the Bank of Montreal. The company's previous financing round, a rights issue in August 2013, was held at a company value of $200 million. The company is already in a different place, following the launch of sales a month ago.
Following the announcement, the share price of Clal Biotech, controlled by Len Blavatnik, rose 5.2%, and rose a further 0.6% in morning trading today. Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) owns 14% of Clal Biotech.
Using pineapple to treat burns
A year ago, MediWound obtained marketing approval for its burn treatment in Europe, and it began sales a month ago. In the US, the company is preparing for a multi-center trial. The product is a gel made of a mixture of enzymes which are extracted from the stem of the pineapple plant. The gel removes eschar, the necrotic tissue that covers severe burn wounds (burn cleaning), to encourage healing.
Published by Globes [online], Israel business news - www.globes-online.com - on February 3, 2014
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