Company Update (NASDAQ:RMTI): Rockwell Medical Inc Reports Second Quarter 2015 Results


Rockwell Medical Inc (NASDAQ:RMTI), a fully-integrated biopharmaceutical company targeting end-stage renal disease (ESRD) and chronic kidney disease (CKD) with innovative products and services for the treatment of iron replacement, secondary hyperparathyroidism and hemodialysis, reported results for the second quarter of 2015.

Q2 2015 Financial Highlights

  • Sales were $13.0 million, in line with Q2 2014.
  • Gross profit was $2.1 million, a 2.3% increase over Q2 2014.
  • Gross profit margins increased to 15.9% compared to 15.5% in Q2 2014.
  • R&D expense was $0.9 million compared to $0.8 million in Q1 2015.
  • Net loss was ($2.5) million or ($0.05) per share, compared to a net loss of ($3.2) million or ($0.08) per share in Q2 2014, a $.03 per share improvement.
  • Cash and investments were $77.3 million as of June 30, 2015.

YTD 2015 Financial Highlights

  • Sales in the first six months of 2015 were $26.8 million compared to $26.0 million in the first six months of 2014.
  • Gross profit was $4.4 million, an 18.4% increase over the first six months of 2014.
  • Gross profit margins increased to 16.3% compared to 14.2% in the first six months of 2014.
  • R&D expense was $1.7 million compared to $4.8 million in the first six months of 2014.
  • Net loss was ($6.2) million or ($0.12) per share, compared to a net loss of ($11.0) million or ($0.28) per share in the first six months of 2014, a$0.16 per share improvement.

2015 YTD Corporate Highlights

  • Obtained U.S. FDA drug approval to market Triferic™ (ferric pyrophosphate citrate) for iron replacement and hemoglobin maintenance in hemodialysis patients.
  • Received U.S. CMS Q-Code assignment for reimbursement of Triferic; effective July 1, 2015.
  • Increased manufacturing and product inventory ahead of commercial drug launches.
  • Increased marketing and advertising in preparation for commercial drug launches.
  • PRIME ESA Sparing Study published in Kidney International.
  • CRUISE 1-2 Phase 3 Studies published in Nephrology Dialysis Transplantation.
  • Triferic clinical data presented at the National Kidney Foundation Spring Meeting and Annual Dialysis Conference both in the U.S., and ERA-EDTA Congress in Europe.

“As expected, we had another solid quarter,” stated Robert L. Chioini, Chairman and CEO of Rockwell. “Our focus and effort the last five months has been on performing the necessary work to launch Triferic commercially, as well as Calcitriol. Since our FDA approval of Triferic, interest from the clinical community in gaining access to the drug has been strong across large and small dialysis organizations. Short-term pilot evaluations are being coordinated among some of the larger groups to establish internal protocol, prior to clinic-wide use. We anticipate these pilot studies will begin in the next few weeks. Once internal protocols are established and working satisfactorily, we expect to see broad-based clinical adoption of Triferic. (Original Source)

Shares of Rockwell Medical closed today at $13.60, down $0.04 or 0.29%. RMTI has a 1-year high of $18.90 and a 1-year low of $8.10. The stock’s 50-day moving average is $15.81 and its 200-day moving average is $11.98.

On the ratings front, Oppenheimer analyst Ling Wang reiterated a Buy rating on RMTI, with a price target of $26, in a report issued on June 22. The current price target represents a potential upside of 90.9% from where the stock is currently trading. According to TipRanks.com, Wang has a total average return of -3.2%, a 38.5% success rate, and is ranked #3163 out of 3724 analysts.

Rockwell Medical Inc is a biopharmaceutical company targeting end-stage renal disease and chronic kidney disease with products and services for the treatment of iron deficiency, secondary hyperparathyroidism and hemodialysis.