Why the Pentagon Keeps Funding This Small Cap (Nasdaq: MDWD)
The Pentagon has been funding a program for over a decade that enables MediWound, a small-cap biotech company (Nasdaq: MDWD), to develop a topical gel called NexoBrid. This gel dissolves dead tissue from severe burns in four hours without the need for a scalpel or an operating room. The Department of War has added to the program multiple times, bringing the total budget to $21.8 million.
The latest award is $3.3 million, making the program's budget $3.3 million. The program is not just about MediWound's financial success; it also addresses a critical problem in mass casualty events where operating rooms and surgical teams are overwhelmed, leading to increased risk of infection. The gel, an FDA-approved biologic called NexoBrid, is already approved in 45 countries and is stored in the U.S. Strategic National Stockpile.
The funding covers a critical development step between an approved hospital product and a field-ready one, making it deployable in austere settings. NexoBrid has already seen commercial success, with Vericel reporting record revenue for the second quarter of 2026 and MediWound advancing EscharEx in a global Phase III VALUE trial.
The Pentagon's funding across multiple administrations and agencies highlights its consistent confidence in MediWound's technology.
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