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 an exclusive license and manufacturing supply agreement with Saudi-based ARAM Medical for the rights to commercialize Rockwell’s Triferic and Calcitriol in the Middle East to serve a market of approximately 375,000 hemodialysis patients. Triferic is Rockwell’s proprietary iron replacement and hemoglobin maintenance drug for treating anemia in hemodialysis patients. Calcitriol is Rockwell’s generic (active vitamin D) injection for treatment of secondary hyperparathyroidism in dialysis patients.
Under the terms of the agreement, ARAM Medical will become the exclusive distributor for Triferic and Calcitriol in 13 countries, including the Kingdom of Saudi Arabia, Kuwait, Bahrain, Qatar, Oman, Lebanon, Jordan, United Arab of Emirates, Yemen, Syria, Algeria, Tunisia and Egypt for an initial commercial term of 10 years. In consideration for the exclusive rights, ARAM will pay to Rockwell upfront licensing fees, a high double-digit royalty on product sales and commit to annual minimum purchase quantities. ARAM will also assume responsibility for all clinical and regulatory expenses for the territories. Rockwell retains manufacturing responsibilities for both Triferic and Calcitriol. Commercial product availability is expected within approximately 12 months in Saudi Arabia and 12 to 18 months in Egypt and all other territories.
“We are excited to establish this strategic partnership with ARAM Medical to treat the large, growing ESRD population in the Middle East,” commentedRobert L. Chioini, Founder, Chairman and CEO of Rockwell Medical. “This agreement, like the others before it, further validates Triferic’s potential to become the world-wide standard of care in iron maintenance therapy for treating renal anemia. We continue to be focused on securing strategic partnerships that enable us to commercialize Triferic on a global scale. We believe Triferic is the only iron product that can effectively address the severe anemia dialysis patients worldwide suffer from. Working with our partner ARAM, we look forward to offering our life-changing therapy to this large ESRD population representing approximately 375,000 patients in the territory.”
Mr. Mahmoud al Nahas, CEO of ARAM Medical, stated, “We are very happy and appreciative to secure this commercialization agreement with Rockwell Medical. We believe Triferic will become the standard of care for the treatment of anemia for all dialysis patients. The dialysis population in Saudi Arabiaexceeds 25,000 and we strive to provide the best therapies to help patients improve their lives. ARAM Medical is a leading agent in the pharmaceutical field in Saudi Arabia and we have strong relationships throughout the territory. We value this new partnership with Rockwell U.S.A. As the exclusive agent in the Middle East, we will use our vast experience to ensure our efforts are successful in providing our patients with unique products to improve their quality of life.” (Original Source)
Shares of Rockwell Medical closed yesterday at $7.41, up $0.11 or 1.51%. RMTI has a 1-year high of $13.50 and a 1-year low of $5.47. The stock’s 50-day moving average is $7.73 and its 200-day moving average is $7.82.
On the ratings front, RMTI has been the subject of a number of recent research reports. In a report issued on August 9, Brean Murray Carret analyst Jonathan Aschoff reiterated a Sell rating on RMTI, with a price target of $3, which represents a potential downside of 59.5% from where the stock is currently trading. Separately, on July 18, Morgan Stanley’s Andrew Berens reiterated a Sell rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jonathan Aschoff and Andrew Berens have a total average return of -10.5% and 3.0% respectively. Aschoff has a success rate of 36.9% and is ranked #4009 out of 4121 analysts, while Berens has a success rate of 49% and is ranked #1364.
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. The company was founded by Robert L. Chioini in January 1995 and is headquartered in Wixom, MI.