Rockwell Medical Q1 2022 Earnings Report
Key Takeaways
Rockwell Medical reported first quarter net sales of $16.1 million, a 4.2% increase year-over-year. The company amended and expanded its supply agreement with DaVita, including a $7.5 million investment, and completed patient enrollment ahead of schedule in a pivotal Phase 3 trial of Triferic® in China.
First quarter net sales increased by 4.2% year-over-year, reaching $16.1 million.
Supplemental data submitted to the FDA for IND application to enable Phase 2 FPC Home Infusion Trial.
Amended and expanded supply agreement with DaVita, including a $7.5M investment, strengthens Rockwell's financial position.
Patient enrollment completed ahead of schedule in the pivotal Phase 3 trial of Triferic® in China.
Rockwell Medical
Rockwell Medical
Forward Guidance
Rockwell Medical expects concentrate sales to continue to grow due to the restructuring of our supply contract with DaVita. Rockwell expects an improvement in margins for the remainder of 2022.
Positive Outlook
- Concentrate sales are expected to grow due to the DaVita supply contract restructuring.
- Improvement in margins is expected for the remainder of 2022.
- Potential profitability in the concentrates business due to the amended supply agreement with DaVita.
- Restructuring and growth plan for the dialysis business to generate acceptable gross margins and cash flow.
- Active exploration of U.S. and international expansion of the hemodialysis concentrates business.
Challenges Ahead
- Significant inflationary pressures related to national supply chain issues impacted the concentrates business.
- Must wait 30 calendar days from the date of submission of supplemental data before initiating any clinical trials.
- Uncertainty regarding the timing of planned clinical trials and regulatory filings.
- Inability to achieve planned cost savings to operate its concentrates business profitability.
- Inability to satisfy the funding conditions for the second tranche of the DaVita investment.