Brean Capital Remains Cautious On Rockwell Medical, Sees 64% Downside For The Stock


In a research report published Friday, Brean Capital analyst Jonathan Aschoff maintained a Sell rating on Rockwell Medical Inc (NASDAQ:RMTI) with a $4.00 price target, which implies a potential downside of 64% from current levels.

Aschoff explained, “Rockwell plans to launch Triferic in 4-5 months, and meanwhile the company is scaling up manufacturing and marketing activities for Triferic. We expect dismal commercial uptake for Triferic. Most dialysis centers currently have IV iron in their protocol, and although some care providers participated in Rockwell’s trials, we believe dialysis centers will need to conduct pilot studies to understand how Triferic fits into the dialysis process and accordingly tweak their current protocol to use Triferic, thereby slowing its adoption.”

Furthermore, “We see no safety advantages with Triferic. As for the FDA approved generic drug Calcitriol, Rockwell will launch it near the end of 2Q15. We believe that generic IV Calcitriol will not add meaningful value to Rockwell, since IV Calcitriol will be subject to bundled reimbursement and that oral Calcitriol has been approved for many years, is inexpensive and widely available, and that there are several far larger competitors, some of which have both doses of generic IV Calcitriol”

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 14.2% and a 60.6% success rate. Aschoff has a 3.9% average return when recommending RMTI, and is ranked #174 out of 3483 analysts.