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WIXOM, Mich.--(BUSINESS WIRE)--Nov 14, 2022--
Rockwell Medical, Inc. (“Rockwell” or the “Company”) (Nasdaq: RMTI), a commercial healthcare company focused on providing life-sustaining products for patients suffering from blood disorders and diseases associated with the kidney, today provided an update on its overall business strategy and announced its financial and operational results for the third quarter ended September 30, 2022.
BUSINESS STRATEGY UPDATE
During the third quarter of 2022, Rockwell Medical evaluated its businesses and the potential for short- and long-term value. Going forward, Rockwell will focus its efforts on growing the Company’s revenue-generating businesses, which currently include its hemodialysis concentrates business and international partnerships for TRIFERIC ®, pausing further investment in capital-intensive pharmaceutical development programs, and achieving profitability to put the Company in a stronger and more stable financial position. As a result of these efforts, Rockwell expects to achieve profitability in 2024. Once the Company achieves profitability and sustains cash flow from its revenue-generating businesses, it will then consider investments in higher-value, longer-term products to develop a broader kidney care products portfolio.
Subsequent to the third quarter of 2022, Rockwell 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 October 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, the Company believes that it will be able to achieve $100 million in revenue annually in the next few years. Furthermore, this transaction allows Rockwell to drive its overall business to profitability, to improve the Company’s financial position, to maximize revenue, and to unlock the value of its manufacturing and distribution capabilities.
Rockwell is the second largest supplier of life-sustaining hemodialysis concentrates products to dialysis clinics in the United States. Collectively, this strategic focus affords Rockwell the opportunity to expand its leadership position within a large market opportunity, which currently is valued at $380 million and is anticipated to grow to approximately $500 million by 2026 in the United States alone.
“In light of a very challenging macroeconomic environment, we are pleased with our performance for the third quarter of 2022. We generated our largest quarterly revenue to date, significantly reduced our cash burn rate, and reduced our outstanding debt,” said Mark Strobeck, Ph.D., Rockwell Medical's President and CEO. “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.”
FINANCIAL HIGHLIGHTS
OPERATING HIGHLIGHTS
Rockwell Medical’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022 will provide a full analysis of the Company’s business strategy as well as its third quarter of 2022 results.
CONFERENCE CALL AND WEBCAST DETAILS
Please call 10 minutes prior to the call to register.
Date: Monday, November 14, 2022
Time: 8:00am ET
Webcast:www.RockwellMed.com/Results
Live Number: (888) 660-6347 // (International) 1 (929) 201-6594
Replay Number: (800) 770-2030 // (International) 1 (647) 362-9199 A replay will be available via the replay number and webcast through December 14, 2022.
Access Code: 4944610
Speakers: Mark Strobeck, Ph.D., President and Chief Executive Officer; and Paul McGarry, SVP, Finance and Chief Accounting Officer
Format: Discussion of Rockwell Medical's overall business strategy and third quarter of 2022 operational and financial results followed by Q&A.
About Rockwell Medical
Rockwell Medical is a commercial healthcare company focused on providing life-sustaining products for patients suffering from blood disorders and diseases associated with the kidney. Rockwell is an innovative leader in producing and delivering a portfolio of hemodialysis products, including concentrates (solutions and powders) and related ancillaries, to dialysis providers in the United States and internationally. Rockwell is the second largest supplier of acid and bicarbonate concentrates for dialysis patients in the United States. The Company is dedicated to providing the hemodialysis community with the highest quality products supported by the most reliable delivery service in the industry. For more information, visit www.RockwellMed.com.
Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as, "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "could," "can," "would," "develop," "plan," "potential," "predict," "forecast," "project," "intend," "look forward to," "remain confident" or the negative of these terms, and similar expressions, or statements regarding intent, belief, or current expectations, are forward looking statements. There can be no assurance that: Rockwell Medical will achieve its projected total annual revenue for 2022 and beyond; Rockwell Medical will be able to achieve planned cost savings to operate its concentrates business profitability or achieve the other components of its strategy; Rockwell Medical will achieve profitability; termination of the exclusive distribution agreement with Baxter will help improve Rockwell’s balance sheet or long-term viability; or Rockwell Medical’s future cash balance will be sufficient to fund operations going forward. While Rockwell Medical believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties (including, without limitation, those set forth in Rockwell Medical's SEC filings), many of which are beyond our control and subject to change. Actual results could be materially different. Risks and uncertainties include, but are not limited to those risks more fully discussed in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2021, as such description may be amended or updated in any future reports we file with the SEC. Rockwell Medical expressly disclaims any obligation to update our forward-looking statements, except as may be required by law.
ROCKWELL MEDICAL, INC. AND SUBSIDIARIES | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(Dollars In Thousands) | |||||
| September 30, |
| December 31, | ||
| 2022 |
| 2021 | ||
|
| (Unaudited) |
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|
Cash and Cash Equivalents | $ | 27,564 |
| $ | 22,438 |
Total Assets | $ | 54,186 |
| $ | 48,574 |
Total Liabilities | $ | 38,050 |
| $ | 46,039 |
Total Stockholders’ Equity | $ | 16,136 |
| $ | 2,535 |
|
|
|
|
|
|
Common Stock Outstanding |
| 11,152,673 |
|
| 8,544,225 |
Common stock and common stock equivalents* |
| 20,056,596 |
|
| 11,511,666 |
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|
*Common stock and common stock equivalents: |
|
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|
Common stock |
| 11,152,673 |
|
| 8,544,225 |
Preferred stock converted |
| 1,363,636 |
|
| — |
Common stock warrants (pre-funded) |
| 7,311,000 |
|
| — |
Common stock and pre-funded stock warrants |
| 19,827,309 |
|
| 8,544,225 |
Options to purchase common stock |
| 1,311,691 |
|
| 528,591 |
Restricted stock awards |
| 891 |
|
| 7,118 |
Restricted stock units |
| 125,000 |
|
| 29,289 |
Common stock warrants |
| 9,944,378 |
|
| 2,402,442 |
Total common stock and common stock equivalents |
| 31,209,269 |
|
| 11,511,666 |
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ROCKWELL MEDICAL, INC. AND SUBSIDIARIES | ||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||
(In Thousands, Except Shares and Per Share Amounts) | ||||||||||||||||
|
| Three Months Ended September 30, 2022 |
| Three Months Ended September 30, 2021 |
| Nine Months Ended September 30, 2022 |
| Nine Months Ended September 30, 2021 | ||||||||
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| ||||
Net Sales |
| $ | 18,691 |
|
| $ | 15,988 |
|
| $ | 53,497 |
|
| $ | 46,599 |
|
Cost of Sales |
|
| 17,914 |
|
|
| 16,317 |
|
|
| 51,760 |
|
|
| 46,788 |
|
Gross Profit (Loss) |
|
| 777 |
|
|
| (329 | ) |
|
| 1,737 |
|
|
| (189 | ) |
Research and Product Development |
|
| 469 |
|
|
| 1,221 |
|
|
| 2,963 |
|
|
| 5,445 |
|
Selling and Marketing |
|
| 762 |
|
|
| 1,541 |
|
|
| 1,743 |
|
|
| 4,860 |
|
General and Administrative |
|
| 3,254 |
|
|
| 3,881 |
|
|
| 11,845 |
|
|
| 11,483 |
|
Operating Loss |
|
| (3,708 | ) |
|
| (6,972 | ) |
|
| (14,814 | ) |
|
| (21,977 | ) |
|
|
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|
|
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Other (Expense) Income |
|
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| ||||
Realized Gain on Investments |
|
| — |
|
|
| — |
|
|
| 4 |
|
|
| (1 | ) |
Interest Expense |
|
| (476 | ) |
|
| (609 | ) |
|
| (1,497 | ) |
|
| (1,772 | ) |
Interest Income |
|
| (6 | ) |
|
| — |
|
|
| (10 | ) |
|
| 17 |
|
Total Other Expense |
|
| (482 | ) |
|
| (609 | ) |
|
| (1,503 | ) |
|
| (1,756 | ) |
|
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| ||||
Net Loss |
| $ | (4,190 | ) |
| $ | (7,581 | ) |
| $ | (16,317 | ) |
| $ | (23,733 | ) |
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Basic and Diluted Net Loss per Share |
| $ | (0.40 | ) |
| $ | (0.89 | ) |
| $ | (1.75 | ) |
| $ | (2.79 | ) |
|
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| |||||
Basic and Diluted Weighted Average Shares Outstanding |
|
| 10,528,148 |
|
|
| 8,534,740 |
|
|
| 9,229,788 |
|
|
| 8,520,603 |
|
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View source version on businesswire.com:https://www.businesswire.com/news/home/20221114005240/en/
CONTACT: INVESTOR RELATIONS CONTACT:
Heather R. Hunter
SVP, Chief Corporate Affairs Officer
(248) 432-1362
IR@RockwellMed.com
KEYWORD: MICHIGAN UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: MEDICAL SUPPLIES HEALTH MEDICAL DEVICES HOSPITALS MANUFACTURING OTHER MANUFACTURING BIOTECHNOLOGY
SOURCE: Rockwell Medical, Inc.
Copyright Business Wire 2022.
PUB: 11/14/2022 06:00 AM/DISC: 11/14/2022 06:02 AM
http://www.businesswire.com/news/home/20221114005240/en