RMTI

Rockwell Medical Inc (NASDAQ:RMTI) reported results for the third quarter of 2016.

Q3 2016 Financial Highlights

  • Sales were $12.8 million, or $1.6 million lower than Q3 2015, primarily due to lower contract manufacturing sales.
  • Gross profit was $1.6 million compared to $2.5 million in Q3 2015, due to lower contract manufacturing revenue and due to an increase in manufacturing and costs related to our drug products.
  • SG&A expense was $5.1 million compared $3.8 million in Q3 2015.
  • R&D expense was $1.3 million and at the same level as in Q3 2015.
  • Net loss was $4.5 million or ($0.09) per share compared to a $2.4 million loss or ( $0.05) per share in Q3 2015.
  • Net loss in Q3 was lower sequentially by $0.8 million compared to Q2 2016 due to lower R&D expenses.
  • Cash and investments were $57.7 million as of September 30, 2016.
  • Net working capital was $72.5 million as of September 30, 2016.

YTD 2016 Financial Highlights

  • Sales were $39.9 million, compared to $41.2 million in the first nine months of 2015.
  • Gross profit was $4.8 million compared to $6.9 million in the first nine months of 2015.
  • Gross profit was impacted by higher drug manufacturing costs, a value add tax paid on the $4.0 million payment received from Wanbang Biopharma and lower third party contract manufacturing revenue.
  • SG&A expense was $15.1 million compared $13.0 million in the first nine months of 2015.
  • R&D expense was $4.6 million compared to $2.9 million in the first nine months of 2015.
  • Net loss was $14.7 million or ($0.29) per share versus $8.7 million or ($0.17) per share in 2015.

YTD Corporate Highlights

  • Triferic Phase-1 Healthy Volunteer Intravenous (IV) Pharmacokinetic Study published in the September 2016 edition of the Journal of Clinical Pharmacology.
  • Entered into license agreement with ARAM Medical to market Triferic in Saudi Arabia and other middle eastern countries.
  • Received FDA approval to market Triferic powder packet.
  • Partnered with Wanbang Biopharma to commercialize Triferic and Calcitriol in the People’s Republic of China, receiving up to $39 million in milestone payments and ongoing profit on commercial product sales in China.

Mr. Robert L. Chioini, Chairman and Chief Executive Officer of Rockwell stated, “We continue to make solid progress in our efforts to obtain transitional add-on reimbursement for Triferic. We believe we are moving closer to our goal of securing it. Multiple stakeholders have aided us and support add-on reimbursement for Triferic. Concurrently, we have been educating our customers and patients about Triferic and its unique benefits. We also have advanced Triferic clinical development work for the renal application outside the U.S. as well as additional therapeutic indications. Overall, we are pleased with our progress, which includes ensuring we have redundancy in our manufacturing and supply capability.” (Original Source)

Shares of Rockwell Medical are currently trading at $4.17, down $1.49 or -27%. RMTI has a 1-year high of $12.42 and a 1-year low of $3.55. The stock’s 50-day moving average is $6.50 and its 200-day moving average is $7.75.

On the ratings front, RMTI stock has been the subject of a number of recent research reports. In a report released today, Merrill Lynch analyst Tazeen Ahmad reiterated a Sell rating on RMTI, with a price target of $5.00, which represents a potential upside of 25% from where the stock is currently trading. Separately, on August 19, BTIG’s Ling Wang initiated coverage with a Buy rating on the stock and has a price target of $12.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Tazeen Ahmad and Ling Wang have a yearly average return of 44% and a loss of 31% respectively. Ahmad has a success rate of 52% and is ranked #96 out of 4181 analysts, while Wang has a success rate of 17% and is ranked #4047.

Rockwell Medical, Inc. is a biopharmaceutical company, which engages in the targeting of end-stage renal disease and chronic kidney disease and manufactures innovative products and services for the treatment of iron deficiency, secondary hyperparathyroidism and hemodialysis. Its dialysis products include Triferic, Calcitriol Vitamin D Injection, Hemodialysis Concentrates, CitraPure, Dri-Sate, and ancillary products.