Company Update (NASDAQ:RMTI): Rockwell Medical Inc Reports Third 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 third quarter of 2015.

Q3 2015 Financial Highlights

  • Sales were $14.4 million, $0.6 million or 4.6% higher than the third quarter of 2014.
  • Gross profit was $2.5 million, a 10.3% increase over Q3 2014.
  • Gross profit margins increased to 17.4% compared to 16.5% in Q3 2014.
  • SG&A expense was $3.8 million, a decrease of $0.3 million compared to Q3 2014.
  • R&D expense was $1.2 million compared to $1.3 million in Q3 2014.
  • Net loss was ($2.4) million or ($0.05) per share, compared to a net loss of ($4.0) million or ($0.10) per share in Q3 2014.
  • Cash and investments were $73.0 million as of September 30, 2015.

YTD 2015 Financial Highlights

  • Sales in the first nine months of 2015 were $41.2 million compared to $39.7 million in the same period of 2014.
  • Gross profit was $6.9 million, a 15.3% increase over the first nine months of 2014.
  • Gross profit margins increased to 16.7% compared to 15.0% in the first nine months of 2014.
  • SG&A expense was $13.0 million, an increase of $0.6 million or 4.7% over the first nine months of 2014.
  • R&D expense was $2.9 million compared to $6.1 million in the first nine months of 2014.
  • Net loss was ($8.7) million or ($0.17) per share, compared to a net loss of ($14.9) million or ($0.37) per share in the first nine months of 2014.

2015 YTD Corporate Highlights

  • Commenced U.S. commercial launch of Triferic® September 2015.
  • Commenced marketing and advertising activity, including introduction of Triferic website (www.triferic.com) for commercial drug launch.
  • Increased product inventory to support commercial launch.
  • Successful PRIME ESA Sparing Clinical Study published in Kidney International.
  • Successful CRUISE 1-2 Phase 3 Clinical Studies published in Nephrology Dialysis Transplantation.
  • Triferic clinical data accepted and presented at multiple U.S. and international conferences.
    • National Kidney Foundation Spring Meeting
    • Annual Dialysis Conference
    • ERA-EDTA Congress in Europe
    • ASN Kidney Week Annual Meeting
  • Received U.S. CMS Q-Code assignment for reimbursement of Triferic; effective July 1, 2015.
  • Obtained U.S. FDA drug approval to market Triferic (ferric pyrophosphate citrate), the only iron replacement and hemoglobin maintenance product for hemodialysis patients.

“We had a very positive and productive third quarter,” stated Robert L. Chioini, Chairman and CEO of Rockwell. “We experienced solid concentrate sales and results, and most importantly we commenced U.S. commercial launch of Triferic, our innovative iron replacement and hemoglobin maintenance drug to treat anemia in hemodialysis patients. The clinical community has responded favorably to Triferic and its unique mechanism of action, which enables iron to bind immediately to transferrin and bypass the current iron sequestration and RE block that occurs with IV iron products. The drug’s ability to deliver iron at every patient treatment and maintain hemoglobin concentration without increasing iron stores has received strong interest across the spectrum of dialysis providers, from large-to-small. We anticipate broad clinical adoption over the next several months of this first-in-class iron maintenance therapy for ESRD patients.” (Original Source)

Shares of Rockwell Medical opened today at $11.9 and are currently trading down at $11.41. RMTI has a 1-year high of $18.90 and a 1-year low of $7.09. The stock’s 50-day moving average is $10.09 and its 200-day moving average is $12.19.

On the ratings front, Rockwell has been the subject of a number of recent research reports. In a report issued on October 21, Oppenheimer analyst Ling Wang reiterated a Buy rating on RMTI, with a price target of $26, which implies an upside of 118.5% from current levels. Separately, on August 13, Morgan Stanley’s Andrew Berens initiated coverage with a Sell rating on the stock and has a price target of $7.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ling Wang and Andrew Berens have a total average return of -4.0% and 16.2% respectively. Wang has a success rate of 43.3% and is ranked #3365 out of 3829 analysts, while Berens has a success rate of 60.9% and is ranked #679.

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.