Rockwell Medical Is Getting Killed Because Of These Numbers

Shares of Rockwell Medical Inc RMTI were trading lower by more than 35 percent ahead of Tuesday's market open.

Rockwell Medical said that it lost $0.12 per share in the fourth quarter on revenue of $14.1 million – short of the $0.02 per share Wall Street analysts expected the company to earn on revenue of $20.0 million. Related Link: Long-Time Valeant Bull Jefferies Cuts Price Target 40%

Analyst's Take

Annabel Samimy of Stifel commented in a note that Rockwell Medical posted another quarter post-Triferic approval with "de minimis sales" and it appears "full adoption is not likely until there is more clarity on potential for 'transitional' add-on reimbursement from CMS."

"Given the lack of visibility on the timing of potential sales, we have little confidence in our projections for Triferic going forward, despite our view the product offers both economic benefits to dialysis providers and clinical benefits to patients," Samimy wrote. "We also note Calcitirol will not likely launch until April."

Samimy added that any "meaningful sales" are unlikely until 2017 and not 2016 as had been previously expected.

Samimy downgraded shares of Rockwell Medical to Hold from Buy while also removing a prior $19 price target.