WIXOM–Rockwell Medical Inc. (Nasdaq: RMTI), the Wixom-based developer of products for patients suffering from blood and kidney disorders, announced it would suspend develop of new pharmaceutical products, and concentrate instead on revenue-producing products.
Included are its hemodialysis concentrates business and its Triferic iron deficiency drug.
In this shift, Rockwell officials said they expect the company to achieve profitability in 2024, strengthen its overall financial position, and reduce the company’s reliance on the capital markets to fund future business growth
The company posted revenue of $18.7 million for the third quarter ended Sept. 30, its highest quarterly revenue to date, and an increase from $16 million in the same quarter of 2021. The company posted a loss of $4.2 million or 40 cents a share for the quarter, compared to a loss of $7.6 million or 89 cents a share a year earlier.
For the nine months, revenue was $53.5 million, up from $46.6 million in the first nine months of 2021. The net loss was $16.3 million or $1.75 a share, compared to a loss of $23.7 million or $2.79 a share in the first nine months of 2021.
Cash used in operating activities was $1.1 million for the third quarter, an 81% decrease over the second quarter.
Once the company achieves profitability and sustains cash flow from its revenue-generating businesses, officials said they will consider investments in higher-value, longer-term products to develop a broader kidney care products portfolio.
Rockwell also announced that it is reacquiring its distribution rights to its hemodialysis concentrates products from Baxter and has agreed to terminate the exclusive distribution agreement dated Oct. 2, 2014. Rockwell will acquire more than 700 hemodialysis concentrates customers including hospitals, medical centers, dialysis centers, and health systems, and will begin selling directly to new customers throughout the United States and internationally. With Rockwell’s current customers and projected growth, company officials said Rockwell will be able to achieve $100 million in revenue annually in the next few years.
“In light of a very challenging macroeconomic environment, we are pleased with our performance for the third quarter of 2022, Rockwell President and CEO Mark Strobeck said. “We generated our largest quarterly revenue to date, significantly reduced our cash burn rate, and reduced our outstanding debt. The decisions we have made, and continue to make, are consistent with our strategy going forward, which is focused on growing Rockwell’s revenue-generating businesses and achieving profitability in 2024 to put the company in a stronger and more stable financial position. If successful, we expect that our cash balance will be sufficient to fund operations going forward, thereby reducing our reliance on raising money in the capital markets to fund our operations.”
To listen to a conference call discussing these results, call (800) 770-2030 in the United States or $647) 362-9199 elsewhere, using access code 4944610.
More at www.RockwellMed.com.