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Rockwell reports first-quarter revenue up 4% vs 2018; costs rise for Triferic launch
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Rockwell Medical Inc. reported first earnings of $15.6 million in sales revenue — a 4% increase compared to the first quarter of 2018 — but a loss of $8.7 million overall for the quarter as costs rise for Triferic launch.
The company announced on May 6 that it would begin selling the first formulation in its Triferic portfolio, Dialysate Triferic, while indicating it would submit a new drug application for IV Triferic in the United States during the second quarter of 2019.
“The commercial launch of Dialysate Triferic marks an important milestone for Rockwell Medical,” Stuart Paul, president and CEO of Rockwell Medical, said during its May 9 earnings call. “Triferic offers a much-needed alternative for health care providers who treat anemia in their hemodialysis patients. Our efforts during the first quarter of 2019 were primarily focused on completing our market and pricing research, enhancing our medical education platform, and building a strong commercial and medical infrastructure to execute on our launch plans.”
He said the IV version of Triferic “will potentially be eligible for separate reimbursement in the U.S., if approved by CMS, for a period of 2 years. It also allows for Triferic administration with dry bicarbonate bags/cartridges, which are commonly used in Europe, China and other countries around the globe,” Paul said.
Higher first-quarter sales were primarily due to higher domestic dialysis concentrate sales to Baxter Health Care and an increase in international sales compared to same period in 2018. The $8.7 million loss for the quarter ($3.2 million more compared to the first quarter of 2018) included higher selling and marketing expenses for the Triferic launch ($3.1 million compared to $0.2 million in the first quarter of 2018) and increases in general and administrative expenses ($6.2 million for the first quarter of 2019 compared with $3.1 million for the first quarter of 2018). The increase was primarily due to the reversal of certain compensation-related accruals in the first quarter of 2018 and an increase in annual reporting and consulting fees, the company said.
The company saw a reduction in research and product development expenses, spending $0.5 million for the first quarter of 2019 compared to $1.7 million for the first quarter of 2018. The decrease was due primarily to a reduction in clinical trial and other product development costs.
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