In a research report issued today, Brean Capital analyst Jonathan Aschoff reiterated a Sell rating on Rockwell Medical (NASDAQ:RMTI) with a price target of $4.00, which represents a potential downside of 64% from where the stock is currently trading. The report follows last Thursday AdComm panel, which voted 8-3 for the approval of the company’s Triferic for maintaining hemoglobin in dialysis patients.
Aschoff noted, “Unfortunately for Triferic’s commercial potential, the design of the CRUISE trials does not reflect real world dialysis practice, and CRUISE results were based on highly variable endpoints. Variable dialysis duration also makes it difficult to provide appropriate dosing instructions for Triferic. Even if Triferic gets approved, we view market opportunity for Triferic as limited. First Triferic is unlikely to command a high price premium relative to IV iron without showing ESA sparing effects. It is in the panel’s view that another trial would need to be conducted in order to include Triferic’s ESA sparing benefit in the label indication, and Rockwell indicated on its conference call that it does not intend to conduct such a trial. Absent of such a trial, we believe a high price premium for Triferic cannot be justified.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Aschoff has a total average return of 12.7% and a 62.0% success rate. Aschoff has a 10.0% average return when recommending RMTI, and is ranked #173 out of 3367 analysts.