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Brean Predicts 'A Skid And A Crash' For Rockwell Medical's Triferic Drug

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Brean Capital reiterated its Sell rating on Rockwell Medical Inc (NASDAQ: RMTI) on Monday following the FDA approval of its Triferic iron replacement product.

The firm maintained a $4 price target.

Analysts Jonathan Aschoff and Yi Cheng expected “dismal commercial uptake” for the product, even though “the FDA approved Triferic as an iron replacement product to maintain hemoglobin in CKD patients on dialysis.”

Triferic does not claim ESA sparing in its label and cannot “command premium pricing compared to IV iron," they write. The product does not improve margins for dialysis centers, which largely choose their drugs based on economics, and it offers no safety advantages, according to the analysts.

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Aschoff added that the Phase 3 trial was against a control group that was unrelated to the activities of a dialysis center, making the data “both uninterpretable and uninformative to doctors.”

“The rubber now meets the road for Triferic, and all we hear is a skid and a crash,” Aschoff concluded.

Rockwell Medical Inc recently traded at $10.73, down 0.74 percent.

Latest Ratings for RMTI

Aug 2017IFS SecuritiesInitiates Coverage OnStrong Buy
Nov 2016Bank of AmericaDowngradesNeutralUnderperform
Aug 2016BTIG ResearchInitiates Coverage onBuy

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Posted-In: Brean Jonathan Aschoff Yi ChengShort Ideas Price Target Reiteration Analyst Ratings Trading Ideas


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