Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Rockwell Medical Inc. Shares Dipped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Rockwell Medical (NASDAQ: RMTI  ) , a biopharmaceutical company focused on developing therapies to treat end-stage renal disease and chronic kidney disease, fell as much as 10% after the company reported its first-quarter earnings results after the closing bell last night.

So what: For the quarter, Rockwell Medical reported revenue of $13 million, a 5% increase over the year-ago quarter, as gross profit jumped 31%, to $1.7 million, and research and development expenses tumbled 64%, to just $4.6 million. The company's net loss for the quarter was practically halved, down 49%, to $7.8 million, or $0.20 per share, from $15.4 million, or $0.72 per share in Q1 2013. By comparison, Wall Street was anticipating a narrower net loss of just $0.14 per share.

Now what: While Rockwell didn't go into a lot of detail about its earnings results, the only factor that really had a demonstrable change was its reduced R&D expenses with the absence of its Triferic trial costs. While investors might feel enticed to duck and cover based on today's wider loss, they should really be focused on the outcome of Rockwell's new drug application filing for Triferic as an iron replacement therapy during dialysis. Triferic performed remarkably well in trials, and my personal expectation is that it'll be approved by the Food and Drug Administration. With annual peak sales expected to be $150 million-$250 million for Triferic (if approved), and the company's costs coming down considerably, I suspect there could be decent upside in shares over the long run following today's swoon.

Rockwell Medical may have plenty of potential, but even if could struggle to keep pace with this top stock over the long run
Give me five minutes, and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer handpicks one stock with outstanding potential. But it's not just any run-of-the-mill company; it’s a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year, his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252%, and 1,303% during the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2955663, ~/Articles/ArticleHandler.aspx, 8/31/2015 1:02:00 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Sean Williams

A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and in investment planning topics. You'll usually find him writing about Obamacare, marijuana, developing drugs, diagnostics, and medical devices, Social Security, taxes, or any number of other macroeconomic issues.

Today's Market

updated 2 days ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
RMTI $12.30 Up +0.35 +2.93%