- Closes $7.5
Million Second Tranche Investment from DaVita
- $30
Million in Total Capital Raised This Quarter
- Receives Additional Feedback from FDA on its
IND Application
WIXOM,
Mich., June 22, 2022 /PRNewswire/
-- Rockwell Medical, Inc. (Nasdaq: RMTI), a biopharmaceutical
company dedicated to transforming the treatment of iron deficiency
and anemia management and improving outcomes for patients, today
provided an update on its recent capital raise and a clinical
update on safety enhancements to its planned Phase 2 clinical trial
of Ferric Pyrophosphate Citrate (FPC) in home infusion
patients.
On June 16, 2022 Rockwell Medical
closed the second $7.5 million
tranche of the previously announced DaVita, Inc (NYSE:DVA)
stock purchase agreement under which DaVita agreed to purchase up
to $15 million in convertible
preferred stock in two tranches. This investment, in addition to
the recently announced $15 million financing, brings the total
gross amount raised by Rockwell this quarter to $30 million. There were no commissions paid
on either investment.
"This capital, when combined with the initiatives we completed
earlier this year, will extend our cash runway meaningfully, during
which time we will continue advancing our Ferric Pyrophosphate
Citrate (FPC) development programs and improving our dialysis
business," said Russell Skibsted,
Executive Vice President, CFO and CBO. "We plan to restructure and
grow our dialysis business to generate improved gross margins and
cash flow. On the development side, with the rapidly growing trend
toward medical care at home, we are preparing to conduct our Phase
2 clinical trial of FPC in home infusion patients, a population
with a significant unmet burden from iron deficiency
anemia, pending submission of additional CMC microbial data in
support of FDA clearance to begin this trial."
Due to the fact that the eventual commercial presentation of
FPC) for the treatment of iron deficiency anemia and maintenance of
hemoglobin in patients receiving infusion therapy in the home
setting, a single dose sterile unit, is still in development, the
planned Phase 2 proof of concept study design requires that three
units of the existing FDA-approved IV product be compounded into a
single unit for each patient dose. Because of this
necessary step, the U.S. Food and Drug Administration (FDA)
requested that Rockwell perform a microbial challenge study, a
standard study testing the potential for microbial growth.
Successful completion of this study will add an additional layer of
safety for clinical trial patients.
"We are pleased to provide the FDA with the additional data
requested and fully support the generation of any data that will
further assure the safety of the patients that will participate in
our study," said Marc Hoffman, M.D.,
Chief Medical Officer of Rockwell Medical. "We continue to make
progress toward clearance of our IND. We believe the requested
microbial challenge study will have minimal impact on our proposed
Phase 2 program timeline or cost as the tests will be conducted in
parallel with the clinical study start-up activities."
Home infusion therapy is a rapidly growing segment of home
healthcare. Many patients receiving home infusion therapy
have diseases that are associated with a high rate of iron
deficiency and anemia, and current treatment options are not well
suited for use in the home setting.
About Rockwell Medical
Rockwell Medical is a commercial-stage biopharmaceutical company
developing and commercializing its next-generation parenteral iron
technology platform, Ferric Pyrophosphate Citrate (FPC), which has
the potential to lead transformative treatments for iron deficiency
in multiple disease states, reduce healthcare costs and improve
patients' lives. The Company has two FDA-approved therapies
indicated for patients undergoing hemodialysis, which are the first
two products developed from the FPC platform. Rockwell Medical is
also advancing its FPC platform by developing FPC for the treatment
of iron deficiency anemia in patients outside of dialysis, who are
receiving intravenous medications in the home infusion setting. In
addition, Rockwell Medical is one of two major suppliers of
life-saving hemodialysis concentrate products to kidney dialysis
clinics in the United States. For
more information, visit www.RockwellMed.com.
About Home Health and IDA in Home
Infusion Therapy
Home health is an area of medicine experiencing significant
growth – a trend that will likely continue over the next decade due
to an aging US population, the need to control costs, the desire to
improve patient outcomes, and the convenience of home healthcare.
Home infusion therapy, an important part of some home care
regimens, allows patients with diseases requiring regular infusions
of intravenous medications to be treated in the comfort of their
home and has been proven to be a cost-effective, safe, and
efficacious alternative to inpatient care for a variety of
therapies and disease states, both acute and chronic. Treating IDA
as part of an existing home infusion regimen more effectively,
calls for an innovative approach. Rockwell Medical is developing a
technology to manage iron in the home infusion setting. Ferric
Pyrophosphate Citrate (FPC) is Rockwell's novel next-generation
parenteral iron is anticipated to enter a Phase II study for the
treatment of IDA in the home infusion setting in 2022.
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 be able to, among other
things, receive FDA clearance for its planned clinical trial of FPC
in home infusion patients or the timing of any such approval, have
sufficient capital to complete a trial in home infusion patients,
or maintain timing for planned clinical trials and regulatory
filings. 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.
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SOURCE Rockwell Medical, Inc.