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 and year ended December 31, 2014.
Q4 2014 Financial Highlights
- Sales were $14.4 million, a 3.5% increase over Q4 2013.
- Gross profit was $2.6 million, a 25% increase over Q4 2013.
- R&D expense was $1.7 million, a 71% decrease compared to $5.8 million in Q4 2013.
- Cash and investments were $85.7 million at December 31, 2014.
Q4 2014 Corporate Highlights
- Received $20 million in cash from Baxter Healthcare Corporation upon executing exclusive concentrate product commercialization agreement; additionally cash potential of $17.5 million for meeting milestones.
- Received $15 million in cash from Baxter for equity investment for RMTI common stock at $11.39 per share.
- Received $8.4 million in cash from warrant conversion.
- Raised $55 million in cash from equity financing with Bank of America Merrill Lynch.
- Paid off long-term debt of $20 million.
- Received FDA Advisory Committee majority vote to approve Triferic for iron replacement and maintenance of hemoglobin in hemodialysis patients.
2014 Financial Highlights
- Sales were $54.2 million, a 3.5% increase over 2013.
- Gross profit was $8.5 million, an increase of 28.3% over 2013.
- R&D expense was $7.8 million, an 80% decrease compared to $39.4 million in 2013.
- Loss for the year was $21.3 million, a 56% decrease compared to $48.8 million loss in 2013.
Recent Corporate Highlights
- Received U.S. FDA market approval for Triferic for iron replacement and maintenance of hemoglobin in hemodialysis patients.
- Presented two Triferic posters at Annual Dialysis Conference in New Orleans, Louisiana.
“We had a very eventful active year,” stated Mr. Robert L. Chioini, Chairman and Chief Executive Officer of Rockwell. “Our fourth quarter was exceptional and included three major milestone accomplishments. First, we monetized and de-risked our operating business and positioned it for future growth through our new partnership with Baxter. Then, we conducted a successful FDA advisory committee meeting, achieving a majority vote to approve Triferic as the only iron replacement and hemoglobin maintenance drug for hemodialysis patients. Additionally, we completed a successful financing, strengthening our cash and liquidity position resulting in a strong balance sheet with no debt.”
Mr. Chioini further commented, “Recently, we received FDA approval to commercially market Triferic in the U.S., where we are confident that this new drug will improve the lives of hemodialysis patients and create value for the dialysis providers in the renal community. We are now working diligently towards the commercial launch of both Triferic and Calcitriol, as well as expanding our operating business. Overall, we accomplished significant, strategic milestones and as we continue to execute we are focused and well prepared to offer patients and physicians clinically beneficial products while building Rockwell into a leading biotech company.”
Shares of Rockwell Medical opened today at $10.75 and are currently trading up at $11.115. RMTI has a 1-year high of $14.80 and a 1-year low of $8.10. The stock’s 50-day moving average is $10.87 and it’s 200-day moving average is $9.84.
On the ratings front, Rockwell Medical (NASDAQ: RMTI) has been the subject of a number of recent research reports. In a report issued on January 27, Summer Street analyst James Molloy reiterated a Buy rating on RMTI, with a price target of $25, which implies an upside of 132.6% from current levels. Separately, on the same day, Oppenheimer’s Ling Wang reiterated a Buy rating on the stock and has a price target of $26.
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.