May 5, 2010

Rockwell Medical Reports First Quarter Results

May 5, 2010 (GlobeNewswire via COMTEX News Network) --

          Revenues Increase 17.1%; Gross Profit Increases 94%


  Conference Call at 8:30am ET to Discuss Results and Review Clinical
                              Development


WIXOM, Mich., May 5, 2010 (GLOBE NEWSWIRE) -- Rockwell Medical (Nasdaq:RMTI), a fully-integrated biopharmaceutical company offering innovative products and services targeting end-stage renal disease (ESRD), chronic kidney disease (CKD) and iron deficiency anemia, reported first quarter 2010 results today.

First Quarter Financial Highlights

  --  Sales increased to $15 million, up 17.1% compared to the first quarter
      of 2009.
  --  Gross profit increased to $2.3 million, up 94% or $1.1 million compared
      to the first quarter of 2009.
  --  Gross profit margins increased to 15.4%, compared to 9.3% in the first
      quarter of 2009.
  --  R&D expense was $.5 million, compared to $1.3 million in the first
      quarter 2009.
  --  Loss was ($0.4) million, compared to ($1.7) million in the first quarter
      of 2009.
  --  Loss per share was ($.02), compared to ($.12) per share in the first
      quarter of 2009.
  --  Cash and cash equivalents increased by $1.6 million to $24.6 million at
      March 31, 2010, from December 31, 2009.


Drug Development and Corporate Progress

  --  Announced SFP Phase IIb study results demonstrating favorable safety
      profile and clear dose response.
  --  Added key consultant and ESA expert, Dr. Ajay Singh, to Scientific
      Advisory Board.


Mr. Robert L. Chioini, Chairman and CEO stated, "Our positive first quarter results were in line with our expectations. Our gross profits and revenues increased substantially and our business operations generated positive cash flow, supporting our development efforts for SFP. Our major clinical development in the first quarter was the announcement of our Phase IIb study results, which demonstrated exceptional safety data and clear dosing data. We have submitted our request to the FDA for an End-of-Phase-II meeting, which we expect will take place within 60 days. We hope to then move into our Phase III clinical trial program later this year. We are also pleased to have Dr. Ajay Singh join our Scientific Advisory Board, further strengthening our team of expert advisors, doctors, and scientists at Rockwell."

Conference Call Information:

Rockwell Medical will be hosting a conference call to review its 2010 first quarter results on Wednesday, May 5, 2010 at 8:30 am ET. Investors are encouraged to call in a few minutes in advance at (877) 383-7438. International participants can call in at (678) 894-3975. To listen to the call on the web or to the call replay, investors can visit: http://ir.rockwellmed.com/.

About SFP:

SFP is a novel, investigational, continuous iron therapy designed to treat iron deficiency anemia in ESRD patients. SFP is a proprietary, water-soluble form of iron that travels directly to the bloodstream and transfers iron at a cellular level, similar to normal physiologic dietary iron intake. SFP is designed as a continuous replacement treatment delivering small doses of iron during every dialysis session in order to replenish iron lost during the dialysis procedure, thereby maintaining hemoglobin in the target range as per Kidney Disease Quality Outcomes Initiative (KDQOI) recommendations. Clinical trials to date suggest that SFP, delivered during each dialysis treatment via dialysate, maintains optimal iron balance and avoids liver toxicity while decreasing associated drug administration costs. Recent academic studies have shown that more frequent maintenance doses of iron improve the therapeutic response to erythropoiesis-stimulating agents (ESA), thereby decreasing the ESA doses needed to maintain hemoglobin in the target range. Rockwell Medical has licensed exclusive world-wide rights to manufacture and sell SFP and patents have issued for SFP in multiple countries, including the three largest dialysis markets in the world: the United States, Japan, and the European Union. Based on current market data, the U.S. dialysis market for IV iron is approximately $560 million annually while global market potential is approximately $850 million.

About Rockwell Medical:

Rockwell Medical is a fully-integrated biopharmaceutical company offering innovative products and services initially targeting end-stage renal disease (ESRD), chronic kidney disease (CKD), and iron deficiency anemia. An established manufacturer and leader in delivering high-quality hemodialysis concentrates/dialysates to dialysis providers and distributors in the U.S. and abroad, Rockwell provides products that are used to maintain human life by removing toxins and replacing critical nutrients in the dialysis patient's bloodstream. Dialysis is a process that duplicates kidney function for patients who suffer from ESRD. There are approximately 400,000 ESRD patients in the United States, a prevalence growing at an annual rate of 4 percent, and approximately 2 million ESRD patients world-wide.

The Company is currently developing unique, proprietary renal drug therapies for iron treatment. These exclusive renal drug therapies support disease management initiatives to improve the quality of life and care of dialysis patients and are designed 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 SFP for indications outside of hemodialysis. Please visit www.rockwellmed.com for more information.

The Rockwell Medical Technologies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6773

Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. 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 the Company 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 the 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.

                                   ROCKWELL MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY

                                             CONSOLIDATED INCOME STATEMENTS

                              For the three months ended March 31, 2010 and March 31, 2009

                                                       (Unaudited)


                                                            Three Months Ended                      Three Months Ended
                                                                March 31, 2010                          March 31, 2009
                                        --------------------------------------  --------------------------------------
  Sales                                                           $ 14,979,952                            $ 12,796,772

  Cost of Sales                                                     12,666,423                              11,603,825
                                        --------------------------------------  --------------------------------------
    Gross Profit                                                     2,313,529                               1,192,947
  Selling, General and Administrative                                2,194,903                               1,560,815

  Research and Product Development                                     517,415                               1,338,310
                                        --------------------------------------  --------------------------------------
    Operating (Loss)                                                 (398,789)                             (1,706,178)

  Interest Expense (Income), Net                                       (5,109)                                   9,265
                                        --------------------------------------  --------------------------------------

    Net (Loss)                                                     $ (393,680)                           $ (1,715,443)
                                        ======================================  ======================================

  Basic Earnings (Loss) per Share                                      ($ .02)                                ( $ .12)

  Diluted Earnings (Loss) per Share                                    ($ .02)                                ( $ .12)



           ROCKWELL MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY

                       CONSOLIDATED BALANCE SHEETS

               As of March 31, 2010 and December 31, 2009


                                      March 31,         December 31,
        ASSETS                           2010               2009
                                  -----------------  -----------------
                                     (Unaudited)
  Cash and Cash Equivalents            $ 24,634,222       $ 23,038,095
  Accounts Receivable, net of a
   reserve of $30,000 in 2010
   and $31,000 in 2009                    2,971,123          3,492,622
  Inventory                               2,546,318          3,088,352

  Other Current Assets                      447,582            329,876
                                  -----------------  -----------------
    Total Current Assets                 30,599,245         29,948,945

  Property and Equipment, net             3,589,074          3,631,549
  Intangible Assets                         206,429            214,337
  Goodwill                                  920,745            920,745

  Other Non-current Assets                  164,831            163,645
                                  -----------------  -----------------

    Total Assets                       $ 35,480,324       $ 34,879,221
                                  =================  =================


       LIABILITIES AND
        SHAREHOLDERS' EQUITY

  Capitalized Lease Obligations            $ 34,344           $ 42,938
  Accounts Payable                        3,769,327          3,388,757
  Accrued Liabilities                     1,349,186          1,854,347

  Customer Deposits                         477,044            250,915
                                  -----------------  -----------------
    Total Current Liabilities             5,629,901          5,536,957

  Capitalized Lease Obligations              13,593             19,062

    Shareholders' Equity:
  Common Shares, no par value,
   17,202,108 and 17,200,442
   shares issued and outstanding         54,290,988         53,545,394
  Common Share Purchase
   Warrants, 3,323,569 and
   3,318,569 warrants issued and
   outstanding                            7,797,309          7,635,594

  Accumulated Deficit                  (32,251,467)       (31,857,786)
                                  -----------------  -----------------

    Total Shareholders' Equity           29,836,830         29,323,202
                                  -----------------  -----------------

    Total Liabilities and
     Shareholders' Equity              $ 35,480,324       $ 34,879,221
                                  =================  =================

              ROCKWELL MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY

                     CONSOLIDATED STATEMENTS OF CASH FLOWS

         For the three months ended March 31, 2010 and March 31, 2009

                                 (Unaudited)


                                                  2010            2009
                                              ------------  ----------------

  Cash Flows From Operating Activities:
   Net (Loss)                                  $ (393,680)   $   (1,715,443)
  Adjustments To Reconcile Net Loss To Net
   Cash Used In Operating Activities:
    Depreciation and Amortization                  363,479           227,373
    Loss (Gain) on Disposal of Assets                7,539           (5,121)
    Share Based Compensation -- Non-employee
     Warrants                                      161,714           135,417
    Share Based Compensation -- Employees          740,446           373,823

    Changes in Assets and Liabilities:
     Decrease in Accounts Receivable               521,499           360,455
     Decrease in Inventory                         542,034           345,796
     (Increase)  in Other Assets                 (118,892)          (46,633)
     Increase (Decrease) in Accounts Payable       380,570       (1,376,481)

     (Decrease) in Other Liabilities             (279,032)         (260,684)
                                              ------------  ----------------

      Changes in Assets and Liabilities          1,046,179         (977,547)
                                              ------------  ----------------
      Cash Provided by (Used) In Operating
       Activities                                1,925,677       (1,961,498)

  Cash Flows From Investing Activities:
   Purchase of Equipment                         (320,635)         (234,563)
   Proceeds on Sale of Assets                           --             5,121

   Purchase of Intangible Assets                        --           (2,362)
                                              ------------  ----------------
      Cash (Used ) In Investing Activities       (320,635)         (231,804)

  Cash Flows From Financing Activities:
   Issuance of Common Shares and Purchase
    Warrants                                         5,148                --

   Payments on Notes Payable                      (14,063)          (49,875)
                                              ------------  ----------------
      Cash (Used) By Financing Activities          (8,915)          (49,875)

  Increase (Decrease) In Cash and Cash
   Equivalents                                   1,596,127       (2,243,177)
  Cash  and Cash Equivalents at Beginning of
   Period                                       23,038,095         5,596,645
                                              ------------  ----------------

  Cash and Cash Equivalents at End of Period  $ 24,634,222      $  3,353,468
                                              ============  ================

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Rockwell Medical Technologies, Inc.

CONTACT:  LaVoie Group
Media Contact:
Lisa Rivero, Director, Media Relations
(978)745-4200 ext. 106
The Trout Group LLC
Investor Contact:
Brian Korb, VP
(646) 378-2923

(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.

News Provided by COMTEX


Close window | Back to top


Copyright 2017 Rockwell Medical