MediWound Ltd. (NASDAQ: MDWD) saw its shares back off early on Tuesday after the company announced the pricing of its secondary offering. Biotech companies may attempt a secondary offering after seeing a run in the share price over time, or at least after a sizable clinical success, to reap the most cash possible. Now seems the as good a time as any for MediWound to capitalize in 2017.

Excluding Tuesday’s move, MediWound shares have increased 32% year to date. However, over the past 52 weeks the stock is actually down 17%.

According to the offering, the company plans to offer 4.4 million shares at $5 apiece, with an overallotment option for an additional 660,000 shares. At this price the entire offering is valued up to $25.3 million.

The underwriters for the offering are Cowen, Wells Fargo, Oppenheimer, SunTrust Robinson Humphrey and Aegis Capital.

For some quick background: this is a fully integrated biopharmaceutical company focused on developing, manufacturing and commercializing novel therapeutics to address unmet needs in the fields of severe burns, chronic and other hard-to-heal wounds, connective tissue disorders and other indications.

The company intends to use the net proceeds from this offering to fund its research and development activities, primarily the clinical development of EscharEx, and the remainder, if any, for working capital and other general corporate purposes.

Shares of MediWound were last seen down about 16.5% at $5.05, with a consensus analyst price target of $10.75 and a 52-week range of $4.25 to $8.58.

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