Rockwell Medical Reports Third Quarter Results
November 07 2016 - 4:01PM
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, reported results for the
third quarter of 2016.
Q3 2016 Financial
Highlights
- Sales were $12.8 million, or $1.6 million lower than Q3 2015,
primarily due to lower contract manufacturing sales.
- Gross profit was $1.6 million compared to $2.5 million in Q3
2015, due to lower contract manufacturing revenue and due to an
increase in manufacturing and costs related to our drug products.
- SG&A expense was $5.1 million compared $3.8 million in Q3
2015.
- R&D expense was $1.3 million and at the same level as in Q3
2015.
- Net loss was $4.5 million or ($0.09) per share compared to a
$2.4 million loss or ($0.05) per share in Q3 2015.
- Net loss in Q3 was lower sequentially by $0.8 million compared
to Q2 2016 due to lower R&D expenses.
- Cash and investments were $57.7 million as of September 30,
2016.
- Net working capital was $72.5 million as of September 30,
2016.
YTD 2016 Financial
Highlights
- Sales were $39.9 million, compared to $41.2 million in the
first nine months of 2015.
- Gross profit was $4.8 million compared to $6.9 million in the
first nine months of 2015.
- Gross profit was impacted by higher drug manufacturing costs, a
value add tax paid on the $4.0 million payment received from
Wanbang Biopharma and lower third party contract manufacturing
revenue.
- SG&A expense was $15.1 million compared $13.0 million in
the first nine months of 2015.
- R&D expense was $4.6 million compared to $2.9 million in
the first nine months of 2015.
- Net loss was $14.7 million or ($0.29) per share versus $8.7
million or ($0.17) per share in 2015.
YTD Corporate Highlights
- Triferic Phase-1 Healthy Volunteer Intravenous (IV)
Pharmacokinetic Study published in the September 2016 edition of
the Journal of Clinical Pharmacology.
- Entered into license agreement with ARAM Medical to market
Triferic in Saudi Arabia and other middle eastern countries.
- Received FDA approval to market Triferic powder packet.
- Partnered with Wanbang Biopharma to commercialize Triferic and
Calcitriol in the People's Republic of China, receiving up to
$39 million in milestone payments and ongoing profit on commercial
product sales in China.
Mr. Robert L. Chioini, Chairman and Chief
Executive Officer of Rockwell stated, “We continue to make solid
progress in our efforts to obtain transitional add-on reimbursement
for Triferic. We believe we are moving closer to our goal of
securing it. Multiple stakeholders have aided us and support add-on
reimbursement for Triferic. Concurrently, we have been educating
our customers and patients about Triferic and its unique benefits.
We also have advanced Triferic clinical development work for the
renal application outside the U.S. as well as additional
therapeutic indications. Overall, we are pleased with our progress,
which includes ensuring we have redundancy in our manufacturing and
supply capability.”
Conference Call
InformationRockwell Medical will be hosting a conference
call to review its second quarter 2016 results on Monday, November
7, 2016 at 4:30 pm ET. Investors are encouraged to call a few
minutes in advance at (877)-857-6150, or for international callers
(719)325-4825, passcode # 8926063 or to listen to the call via
webcast at the Rockwell Medical IR web page:
http://ir.rockwellmed.com/
About TrifericTriferic is the
only FDA approved drug indicated to replace iron and maintain
hemoglobin in hemodialysis patients suffering from anemia. Via
dialysate during each dialysis treatment, Triferic replaces the 5-7
mg iron loss that occurs in all patients, effectively maintaining
their iron balance. Unlike IV iron products, Triferic binds iron
immediately and completely to transferrin (carrier of iron in the
body) upon entering the blood and it is then transported directly
to the bone marrow to be incorporated into hemoglobin, with no
increase in ferritin (stored iron and inflammation) and no
anaphylaxis, addressing a significant unmet need in overcoming
Functional Iron Deficiency (FID) in ESRD patients. Please visit
www.triferic.com to view the Triferic mode-of-action (MOA) video
and for more information.
About Rockwell MedicalRockwell
Medical is 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.
Rockwell’s recent FDA approved drug
Triferic is indicated for iron replacement and maintenance of
hemoglobin in hemodialysis patients. Triferic delivers iron to
patients during their regular dialysis treatment, using dialysate
as the delivery mechanism. Triferic has demonstrated that it safely
and effectively delivers sufficient iron to the bone marrow and
maintains hemoglobin, without increasing iron stores (ferritin).
Rockwell intends to market Triferic to hemodialysis patients in the
U.S. dialysis market and globally.
Rockwell’s FDA approved generic drug Calcitriol
is for treating secondary hyperparathyroidism in dialysis patients.
Calcitriol (active vitamin D) injection is indicated in the
management of hypocalcemia in patients undergoing chronic renal
dialysis. It has been shown to significantly reduce elevated
parathyroid hormone levels. Reduction of PTH has been shown to
result in an improvement in renal osteodystrophy. Rockwell
intends to market Calcitriol to hemodialysis patients in the U.S.
dialysis market.
Rockwell is also an established manufacturer and
leader in delivering high-quality hemodialysis
concentrates/dialysates to dialysis providers and distributors in
the U.S. and abroad. As one of the two major suppliers in the U.S.,
Rockwell’s products are used to maintain human life by removing
toxins and replacing critical nutrients in the dialysis patient’s
bloodstream. Rockwell has three U.S. manufacturing/distribution
facilities.
Rockwell’s exclusive renal drug therapies
support disease management initiatives to improve the quality of
life and care of dialysis patients and are intended to deliver safe
and effective therapy, while decreasing drug administration costs
and improving patient convenience. Rockwell Medical is developing a
pipeline of drug therapies, including extensions of Triferic for
indications outside of hemodialysis. Please visit
www.rockwellmed.com for more information.
Certain statements in this press release
constitute "forward-looking statements" within the meaning of the
federal securities laws, including, but not limited to, Rockwell’s
intention to sell and market Calcitriol and Triferic. Words such as
“may,” “might,” “will,” “should,” “believe,” “expect,”
“anticipate,” “estimate,” “continue,” “predict,” “forecast,”
“project,” “plan”, “intend” or similar expressions, or statements
regarding intent, belief, or current expectations, are
forward-looking statements. 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. Thus, actual results could be materially different.
Rockwell Medical expressly disclaims any obligation to update or
alter statements whether as a result of new information, future
events or otherwise, except as required by law.
Triferic® is a registered trademark of Rockwell
Medical, Inc.
|
|
ROCKWELL MEDICAL, INC. AND
SUBSIDIARIES |
|
CONSOLIDATED INCOME STATEMENTS |
|
For the three and nine months ended September
30, 2016 and September 30, 2015 |
|
(Unaudited) |
|
|
|
|
|
Three Months Ended
September 30, 2016 |
|
Three Months Ended
September 30, 2015 |
|
Nine Months Ended
September 30, 2016 |
|
Nine Months Ended
September 30, 2015 |
|
Sales |
|
$ |
|
12,814,815 |
|
|
$ |
|
14,378,528 |
|
|
$ |
|
39,894,380 |
|
|
$ |
|
41,218,065 |
|
|
Rebates |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
Cost of Sales |
|
|
|
11,234,934 |
|
|
|
|
11,875,122 |
|
|
|
|
35,130,045 |
|
|
|
|
34,336,359 |
|
|
Gross
Profit |
|
|
|
1,579,881 |
|
|
|
|
2,503,406 |
|
|
|
|
4,764,335 |
|
|
|
|
6,881,706 |
|
|
Selling, General and
Administrative |
|
|
|
5,070,127 |
|
|
|
|
3,827,904 |
|
|
|
|
15,071,238 |
|
|
|
|
12,989,261 |
|
|
Research and Product
Development |
|
|
|
1,261,863 |
|
|
|
|
1,246,727 |
|
|
|
|
4,639,617 |
|
|
|
|
2,931,577 |
|
|
Operating
Income (Loss) |
|
|
|
(4,752,109 |
) |
|
|
|
(2,571,225 |
) |
|
|
|
(14,946,520 |
) |
|
|
|
(9,039,132 |
) |
|
Interest and Investment
Income |
|
|
|
188,847 |
|
|
|
|
156,672 |
|
|
|
|
602,429 |
|
|
|
|
388,638 |
|
|
Interest (Expense) |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
Income
(Loss) Before Income Taxes |
|
|
|
(4,563,262 |
) |
|
|
|
(2,414,553 |
) |
|
|
|
(14,344,091 |
) |
|
|
|
(8,650,494 |
) |
|
Income Tax Expense |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(404,527 |
) |
|
|
|
— |
|
|
Net
Income (Loss) |
|
$ |
|
(4,563,262 |
) |
|
$ |
|
(2,414,553 |
) |
|
$ |
|
(14,748,618 |
) |
|
$ |
|
(8,650,494 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings (Loss)
per Share |
|
$ |
|
(0.09 |
) |
|
$ |
|
(0.05 |
) |
|
$ |
|
(0.29 |
) |
|
$ |
|
(0.17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings (Loss)
per Share |
|
$ |
|
(0.09 |
) |
|
$ |
|
(0.05 |
) |
|
$ |
|
(0.29 |
) |
|
$ |
|
(0.17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROCKWELL MEDICAL, INC. AND
SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
As of September 30, 2016 and December 31,
2015 |
|
(Unaudited) |
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
2016 |
|
2015 |
|
ASSETS |
|
|
|
|
|
|
|
Cash and Cash
Equivalents |
|
$ |
|
19,293,454 |
|
|
$ |
|
31,198,182 |
|
|
Investments Available
for Sale |
|
|
|
38,434,312 |
|
|
|
|
39,482,732 |
|
|
Accounts Receivable,
net of a reserve of $39,000 in 2016 and $75,000 in 2015 |
|
|
|
8,031,196 |
|
|
|
|
5,046,733 |
|
|
Inventory |
|
|
|
11,760,269 |
|
|
|
|
7,871,780 |
|
|
Other Current
Assets |
|
|
|
2,264,583 |
|
|
|
|
1,026,889 |
|
|
Total
Current Assets |
|
|
|
79,783,814 |
|
|
|
|
84,626,316 |
|
|
Property and Equipment,
net |
|
|
|
1,506,155 |
|
|
|
|
1,646,568 |
|
|
Intangible Assets |
|
|
|
42,555 |
|
|
|
|
165,657 |
|
|
Goodwill |
|
|
|
920,745 |
|
|
|
|
920,745 |
|
|
Other Non-current
Assets |
|
|
|
601,187 |
|
|
|
|
462,839 |
|
|
Total
Assets |
|
$ |
|
82,854,456 |
|
|
$ |
|
87,822,125 |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Accounts Payable |
|
$ |
|
3,396,789 |
|
|
$ |
|
3,995,216 |
|
|
Accrued
Liabilities |
|
|
|
3,825,374 |
|
|
|
|
3,831,356 |
|
|
Customer Deposits |
|
|
|
91,005 |
|
|
|
|
264,879 |
|
|
Total
Current Liabilities |
|
|
|
7,313,168 |
|
|
|
|
8,091,451 |
|
|
|
|
|
|
|
|
|
|
Deferred License
Revenue |
|
|
|
19,783,978 |
|
|
|
|
17,410,852 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
Common Shares, no par
value, 51,527,711 and 51,501,877 shares issued and outstanding |
|
|
|
265,648,345 |
|
|
|
|
257,773,494 |
|
|
Accumulated
Deficit |
|
|
|
(209,286,794 |
) |
|
|
|
(194,538,176 |
) |
|
Accumulated Other
Comprehensive Income |
|
|
|
(604,241 |
) |
|
|
|
(915,496 |
) |
|
Total
Shareholders’ Equity |
|
|
|
55,757,310 |
|
|
|
|
62,319,822 |
|
|
Total
Liabilities And Shareholders’ Equity |
|
$ |
|
82,854,456 |
|
|
$ |
|
87,822,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROCKWELL MEDICAL, INC. AND
SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
For the nine months ended September 30, 2016
and September 30, 2015 |
|
(Unaudited) |
|
|
|
|
|
2016 |
|
2015 |
|
Cash Flows From
Operating Activities: |
|
|
|
|
|
|
|
Net
(Loss) |
|
$ |
|
(14,748,618 |
) |
|
$ |
|
(8,650,494 |
) |
|
Adjustments To Reconcile Net Loss To Net Cash Used In Operating
Activities: |
|
|
|
|
|
|
|
Depreciation and Amortization |
|
|
|
583,501 |
|
|
|
|
608,152 |
|
|
Share
Based Compensation—Employees |
|
|
|
7,794,690 |
|
|
|
|
6,097,122 |
|
|
Restricted Stock Retained in Satisfaction of Tax Liabilities |
|
|
|
— |
|
|
|
|
(2,912,859 |
) |
|
Loss on
Disposal of Assets |
|
|
|
7,340 |
|
|
|
|
4,292 |
|
|
Loss on
Sale of Investments Available for Sale |
|
|
|
26,820 |
|
|
|
|
58,095 |
|
|
Changes
in Assets and Liabilities: |
|
|
|
|
|
|
|
(Increase) in Accounts Receivable |
|
|
|
(2,984,463 |
) |
|
|
|
(1,424,485 |
) |
|
(Increase) in Inventory |
|
|
|
(3,888,489 |
) |
|
|
|
(3,495,096 |
) |
|
(Increase) in Other Assets |
|
|
|
(1,376,042 |
) |
|
|
|
(1,014,009 |
) |
|
(Decrease) in Accounts Payable |
|
|
|
(598,427 |
) |
|
|
|
(71,121 |
) |
|
(Decrease) in Other Liabilities |
|
|
|
(179,856 |
) |
|
|
|
(1,259,560 |
) |
|
Increase
(decrease) in Deferred License Revenue |
|
|
|
2,373,126 |
|
|
|
|
(1,479,681 |
) |
|
Changes
in Assets and Liabilities |
|
|
|
(6,654,151 |
) |
|
|
|
(8,743,952 |
) |
|
Cash
(Used) In Provided By Operating Activities |
|
|
|
(12,990,418 |
) |
|
|
|
(13,539,644 |
) |
|
Cash Flows From
Investing Activities: |
|
|
|
|
|
|
|
Purchase
of Investments Available for Sale |
|
|
|
(23,158,809 |
) |
|
|
|
(21,800,000 |
) |
|
Sale of
Investments Available for Sale |
|
|
|
24,491,678 |
|
|
|
|
1,468,656 |
|
|
Purchase
of Equipment |
|
|
|
(328,322 |
) |
|
|
|
(336,856 |
) |
|
Proceeds
on Sale of Assets |
|
|
|
1,000 |
|
|
|
|
4,800 |
|
|
Cash
(Used In) Investing Activities |
|
|
|
1,005,547 |
|
|
|
|
(20,663,400 |
) |
|
Cash Flows From
Financing Activities: |
|
|
|
|
|
|
|
Proceeds
from Issuance of Common Shares and Purchase Warrants |
|
|
|
80,161 |
|
|
|
|
1,575,333 |
|
|
Cash
Provided By Financing Activities |
|
|
|
80,161 |
|
|
|
|
1,575,333 |
|
|
Effects of exchange
rate changes |
|
|
|
(18 |
) |
|
|
|
— |
|
|
(Decrease) Increase In
Cash |
|
|
|
(11,904,728 |
) |
|
|
|
(32,627,711 |
) |
|
Cash At Beginning Of
Period |
|
|
|
31,198,182 |
|
|
|
|
65,800,451 |
|
|
Cash At End Of
Period |
|
$ |
|
19,293,454 |
|
|
$ |
|
33,172,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michael Rice,
Investor Relations;
646-597-6979
Rockwell Medical (NASDAQ:RMTI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Rockwell Medical (NASDAQ:RMTI)
Historical Stock Chart
From Apr 2023 to Apr 2024