Should we buy Mediwound shares?
*This is not financial advice. All content should be considered opinionated. We are not responsible for any of your gains and losses. I am neither a licensed nor registered financial expert. Please see a financial advisor before making investment decisions.
Mediwound (NASDAQ: MDWD) has a PE of 15 and a market cap of just under $100 million.
Let’s take a look into the company and whether they provide an enticing opportunity for investors (or not).
From my analysis of the balance sheet, here are the highlights:
-no debt
-$27.3 million
Regarding financial performance, their flagship product, NexoBird, became cash flow positive in 2019 This product has strong IP protection, making the product's market position strong.
For those wondering this is the opportunity that Mediwound capitalizes on:
Basically, they're providing non-surgical debriding agents for people that have burns and other wounds. Most of these products are usually sold in outpatient facilities.
And here’s the investment case for Mediwound:
Currently, Mediwound has Nexobird (their commercial product) and have EscharEx, the drug made to treat hard-to-heal wounds, in Phase 2 trials. Also, they have MWPC003, the drug intended to treat connective tissue disorders, ready for clinical trials.
With a balance sheet full of cash, government support, cash flow from their flagship product, and success in their pipeline, Mediwound looks to be prepared for better days. Plus, since they have no debt, I do see this investment being a lot safer than most small-cap healthcare stocks. There might be some competitors in that space but if their products are effective, provide a lot of value to the healthcare industry, and they have a moat, then Mediwound looks to be a great growth stock for years to come.
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