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Stock of Israel-based MediWound is up 72% from last year after demand for its severe burn treatment, NexoBrid, surged due to its use in the ongoing war in Gaza.
NexoBrid is made from enzymes extracted from the stem of pineapple plants and is used to remove dead skin called eschar from severe burn wounds.
MediWound reported today that sales of NexoBrid rose 32% to $5 million in its first quarter, January through March, up from $3.8 million in the same period the year before. MediWound CEO Ofer Gonen said that the increase was primarily due to a new contract with the U.S. Department of Defense.
The company is projecting annual sales for the treatment to reach $24 million this year, up from $19 million in 2023.
Gonen said in a call with investors on Wednesday that the lives saved by NexoBrid have “generated interest for many governments for future stockpiling.”
MediWound is working to increase its manufacturing capacity to meet the surging demand. The company says construction of its new manufacturing facility is expected to be completed by mid-2024 with the company being able to start commissioning orders at the site by the third quarter. Once the new facility is fully functional in 2025, production is expected to increase six-fold, according to Gonen.
In December, MediWound secured a $15 million grant from the Department of Defense to develop a temperature-stable formulation of NexoBrid that is easier to use on the battlefield.
Gonen said this partnership “underscores the strategic importance of NexoBrid in field care burn treatment.”