Rockwell Medical Technologies, Inc. (RMTI)

[Minding]

Rockwell Medical Technologies (RIMT) Triferic Sales Not Material Enough To Even Disclose, Brean Capital Notes

Brean Capital analyst Jonathan Aschoff reiterated a Sell rating and $4 price target on Rockwell Medical Technologies (NASDAQ: RMTI) noting Triferic sales were not material enough to even disclose.

Aschoff commented, "Rockwell launched Triferic in the US in September but has not yet generated sales material enough to report separately as Triferic revenue. Rockwell admitted the sales are minimal, and prices are currently being negotiated with individual dialysis providers. We expect dismal commercial uptake for Triferic and reiterate our Sell rating and $4 TP. Rockwell claims that one of the four largest dialysis providers signed a contract with Triferic, with none of the dialysis provider information provided. We do not have any clarity on the name of the provider, the length of the contract or the timeline to disclose such information. We are quite confident, however, that describing it as "one of the top four" means that it is either US Renal Care or Dialysis Clinic Inc., both of which are far smaller than the two biggest dialysis providers. Some minor clinics have ordered Triferic, but no material sales have yet resulted. Rockwell has not set a date to discuss Triferic with the EU agencies, and we are not confident about its plan to expand into 30-40 countries worldwide. As for the generic drug Calcitriol, which was approved in June 2014, it has not even yet been launched. We believe it will not add meaningful value to Rockwell, since IV Calcitriol will be subject to bundled reimbursement and that oral Calcitriol has been approved for many years, is inexpensive and widely available, and that there are several far larger competitors, some of which have both doses of generic IV Calcitriol.:

For an analyst ratings summary and ratings history on Rockwell Medical Technologies click here. For more ratings news on Rockwell Medical Technologies click here.

Shares of Rockwell Medical Technologies closed at $11.47 yesterday.