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 fourth quarter of 2015 and total 2015 year results.
Q4 2015 Financial Highlights
- Sales were $14.1 million, compared to $14.4 million in Q4 2014.
- Gross profit was $2.1 million, 3.3 % less than Q4 2014.
- Gross profit margins were 14.5%, compared to 17.8% in Q4 2014.
- SG&A expense was $6.1 million, compared $5.9 million in Q4 2014.
- R&D expense was $2.0 million compared to $1.7 million in Q4 2014.
- Net loss was ($5.8) million or ($0.12) per share, compared to ($6.4) million or ($0.14) per share in Q4 2014.
- Cash and investments were $70.7 million as of December 31, 2015 and in February 2016 we received a $4 million milestone payment under our license agreement with Wanbang Biopharmaceutical Co., Ltd.
2015 Financial Highlights
- Sales for 2015 were $55.4 million a 2.1% increase compared to $54.2 million in 2014.
- Gross profit increased to $8.9 million, a 4.6% increase over 2014.
- Gross profit margins increased to 16.1% compared to 15.8% in 2014.
- SG&A expense was $19.1 million, an increase of $0.8 million or 4.1% over 2014.
- R&D expense decreased to $5.0 million compared to $7.8 million in 2014.
- Net loss was ($14.4) million or ($0.29) per share, compared to ($21.3) million or ($0.52) per share in 2014.
2016 YTD Corporate Highlights
- Signed exclusive licensing and manufacturing supply agreements with Wanbang Biopharmaceutical Co., Ltd. for the rights to commercialize Triferic and Calcitriol in the People’s Republic of China.
- Filed an IND to investigate Triferic as a potential treatment for patients with iron-refractory, iron-deficiency anemia (IRIDA).
“We had an exceptional year in 2015,” stated Mr. Robert L. Chioini, Chairman and CEO of Rockwell. “We obtained FDA approval for Triferic, scaled-up manufacturing and launched our novel iron replacement drug in September. We have been educating customers large and small about Triferic’s clinical and cost-saving benefits and its convenient in-center use. We have also strengthened the foundation for the drug’s commercial success by developing new packaging, which provides economic benefit to our customers and Rockwell, and it should be commercially available in about 8 weeks. Importantly, we are working with CMS to obtain transitional add-on payment for Triferic which, if obtained, should have a positive impact on market adoption. We expect Triferic sales to grow considerably in 2016. Additionally, in advancing our global licensing strategy, we recently secured what we believe to be the best positioned pharmaceutical partner in China to commercialize Triferic for both hemodialysis and future therapeutic indications, along with Calcitriol, in what will become the single largest dialysis market in the world.” Mr. Chioini also stated, “We expect to have Calcitriol commercially available to customers in the U.S. near the end of April and we expect our product sales to start generating profits in 2016.” (Original Source)
Shares of Rockwell Medical are sinking, down more than 27% in after-hours trading. RMTI has a 1-year high of $18.90 and a 1-year low of $5.47. The stock’s 50-day moving average is $7.30 and its 200-day moving average is $9.81.
On the ratings front, Rockwell has been the subject of a number of recent research reports. In a report issued on December 8, Oppenheimer analyst Ling Wang assigned a Buy rating on RMTI, with a price target of $26, which represents a potential upside of 151.2% from where the stock is currently trading. Separately, on November 10, Brean Murray Carret’s Jonathan Aschoff reiterated a Sell rating on the stock and has a price target of $4.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ling Wang and Jonathan Aschoff have a total average return of -25% and -13% respectively. Wang has a success rate of 11.8% and is ranked #3669 out of 3682 analysts, while Aschoff has a success rate of 28.9% and is ranked #3657.
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.