BTIG Sets $12 Price Target On Rockwell Medical, Sees 63% Upside

BTIG has started coverage on Rockwell Medical Inc RMTI with a Buy and a price target of $12, saying that its lead asset, Triferic, has the potential to replace IV iron in hemodialysis patients.

Triferic is indicated to replace iron and maintain hemoglobin in hemodialysis patients versus IV iron, which are indicated for iron replacements, but not for maintenance of hemoglobin.

"We see RMTI shares as significantly undervalued at the current level with Triferic (projected peak sales of $180+ million), Calcitriol (peak sales of $48+ million) and a base business with a revenue run rate of ~$50 million," analyst Ling Wang wrote in a note.

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Although there is a near-term delay in Triferic ramp-up due to pursuing transitional add-on reimbursement, the analyst views the effort as worthwhile, given the added incentive for dialysis providers.

"Our Buy recommendation is not based on securing transitional add-on reimbursement. Rather, we believe Triferic's value proposition remains intact even without it," Wang noted.

Wang expects 2016 EPS of ($0.42) and revenue of $54.38 million and 2017 EPS of $0.12 on revenue of $55.5 million.

Early Friday, shares of Rockwell Medical were up 1.22 percent to $7.46, but by the time of publication, the stock was down 1.65 percent on the day to $7.25. Based on Thursday's close, the price target of $12 represents a potential upside of 63 percent.

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