Company Update (NASDAQ:RMTI): Rockwell Medical Inc Enters Into Exclusive License Agreement With Wanbang to Commercialize Triferic® in China

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, announced today that it has signed exclusive licensing and manufacturing supply agreements withWanbang Biopharmaceutical Co., Ltd. (Wanbang), a subsidiary of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (Fosun Pharma, SHA: 600196 and HKG: 02196), for the rights to commercialize Rockwell’s Triferic and Calcitriol for End-Stage-Renal-Disease (ESRD) patients, that also includes new therapeutic indications for Triferic, in the People’s Republic of China. Triferic is Rockwell’s proprietary iron replacement and hemoglobin maintenance drug for treating anemia. Calcitriol is Rockwell’s generic (active vitamin D) injection for treatment of secondary hyperparathyroidism in dialysis patients.

Under the terms of the agreement, Wanbang will become the exclusive distributor for Triferic and Calcitriol in China for an initial commercial term of 10 years, with an extended term of 10 or more years based on achievement of annual minimum purchase requirements. In consideration for the exclusive rights, Rockwell will receive from Wanbang an upfront fee plus regulatory and revenue milestone payments totaling USD$39 million in aggregate. Notably, Rockwell will receive ongoing earnings from product sales of Triferic and Calcitriol, and other additional Triferic therapeutic indications. Rockwell retains manufacturing responsibility of all products. Wanbang is required to achieve annual minimum purchase requirements to retain exclusive commercialization rights. In addition to the hemodialysis indication, Wanbang has the exclusive right to develop and commercialize Triferic for new therapeutic indications for the Chinese market. Wanbang is responsible for all clinical, regulatory and marketing expenses for Triferic and Calcitriol in China as well as development and regulatory costs for new Triferic indications.

“We are thrilled to establish this strategic partnership with Wanbang,” stated Robert L. Chioini, Founder, Chairman and CEO of Rockwell. “China has been a top priority in our global Triferic licensing strategy, and this agreement further validates Triferic’s potential for becoming the world-wide standard of care in iron maintenance therapy for the treatment of anemia. This commercialization arrangement enables Rockwell to enter into and capitalize on what is projected to become the largest dialysis market in the world. There are about 300,000 dialysis patients currently receiving hemodialysis in China and that market is expected to double over the next few years as the Chinese government, in conjunction with the private sector, establishes the infrastructure to serve the nearly 2 million patients who are presently in need of hemodialysis but lack access. We are very pleased with this commercialization arrangement in which our primary economic value will be derived from product sales in this fast-growing Chinese market.” Mr. Chioini further stated, “We are excited to work with Wanbang, a leading company in the Chinese healthcare market and one of the key suppliers of biosimilar ESA product and other drugs in the renal space. Wanbang, and their experienced team, is highly skilled and intensely focused on leveraging their business into the forefront of the rapidly growing domestic dialysis market in China, and we expect them to have great success selling Triferic and Calcitriol.”

Mr. Yifang Wu, Chief Operating Officer of Fosum Pharma, Chairman and CEO of Wanbang, added, “We are very excited to have partnered with Rockwell Medical and to be able to have the opportunity to offer such great drugs to the Chinese hemodialysis market. We believe Triferic is a revolutionary iron replacement product that will greatly improve the lives of Chinese dialysis patients and we intend to work in partnership with Rockwell management to offer it to patients as fast as possible. The opportunity to market Triferic in other therapeutic indications is exciting as well. Wanbang is committed to addressing the needs of patients and healthcare providers with a comprehensive range of therapeutic options across home, in-center and hospital settings. This partnership enhances Wanbang’s product portfolio with the addition of Rockwell’s high-quality drug products.” (Original Source)

Shares of Rockwell Medical closed last Friday at $6.50. 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 $7.55 and its 200-day moving average is $10.17.

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 implies an upside of 300.0% from current levels. 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, 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 -26.6% and -15.8% respectively. Wang has a success rate of 9.4% and is ranked #3564 out of 3579 analysts, while Aschoff has a success rate of 27.9% and is ranked #3558.

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.


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