By Muhammad Ali
5:19 AM UTC
Shares of the Rockwell Medical, Inc. (RMTI) stock were declining in the premarket trading session today on January 21, 2022. RMTI stock price saw a decline of 7.57% to drop at $0.43 a share at the time of this writing. The stock was also gloomy in the previous trading session today and went down by 8.61% at closing. Let’s deep dive to understand the cause of this decline.
RMTI stock is continuing the decline since the previous trading session in the stock market. The sentiment is not positive for this stock even after the announcement of regulatory approval of Triferic® Dialysate in South Korea by the company. Rockwell Medical recently reported that its partner Jeil Pharmaceutical Co., Ltd received the second regulatory approval by the Ministry of Food and Drug Safety of the Republic of Korea for Triferic® Dialysate in South Korea. The product being discussed is intended for maintaining the hemoglobin in adult patients suffering from hemodialysis-dependent chronic kidney disease. Previously on January 13, 2022, Jeil also received the regulatory approval of Triferic® AVNU in South Korea. Now the two products forms of Triferic® have got approval in South Korea.
Chronic kidney disease is expanding rapidly in South Korea. The global comparative data shows that it is in the 4th position in the world in the prevalence of end-stage kidney disease. Rockwell has the rights under an exclusive license agreement with Jeil to commercialize the Triferic. The company will supply the product to Jeil, as the latter, under the Triferic brand in South Korea, is the exclusive development and commercialization partner.
According to third-quarter 2021 financial results, the company generated $16.0 million in net sales in the reported quarter. This compares to $15.3 million in the same period of last year. Net sales of the RMTI stock were $15.1 million in the second quarter of 2022. The company reported a $16.3 million cost of sales in the third quarter of 2021 with a $0.3 million gross loss. In the same prior-year period, the company reported a $14.9 million cost of sales and $0.3 million gross profit.
Rockwell spent $1.2 million in research and development expenses and $1.5 million in selling and marketing expenses in Q3,2021.Net loss of the RMTI stock was $7.5 million, or $0.08 per basic and diluted share. Net loss was $7.4 million in the same quarter of the previous year. By the end of the third quarter, the company had $33.2 million in cash, cash equivalents, and total investments.